Business EU Barometer

2nd QUARTER 2013

Methodology
The BCCs Business EU Barometer for Q2 2013 received 3,906 business responses. The respondents were surveyed by postal and online questionnaires over the period 20 May to 12 June. In the manufacturing sector 1,015 firms, employing approximately 95,000 people responded (26% of the total number of responses). In the services sector 2,891 businesses with approximately 245,000 employees responded (74% of the total).

The Business EU Barometer from the British Chambers of Commerce gauges business sentiment on the UKs relationship with the EU. This quarter, respondents were again asked to give their view on the impact of different scenarios for Britains future relationship with the EU. Additionally they were asked about the timing of a potential UK referendum. The key points to emerge were:
Business wants more decisions made in the UK: the scenario viewed most positively was for the UK to remain in the European Union, but with specific powers transferred back from Brussels to Westminster. 61% of respondents believe this would deliver a positive impact to their business (down three points on Q1 2013). Most businesses think withdrawal from the EU would be bad for Britain, but the status quo and / or further integration is also viewed as bad for business: 54% responded that full withdrawal from the European Union would impact negatively on their business (down six points). But 47% believe that remaining in the European Union with no change to the current relationship would be a negative outcome too (up five points). Businesss top three priorities for any future shift of powers from Brussels to Westminster are employment law 66% (up eight points), health and safety law 52% (up six points) and justice & home affairs 43% (up 11 points). Fully 77% of businesses surveyed support a referendum on Britains EU membership, with 14% opposed and 9% unsure. The most popular option for when any referendum should take place is after negotiations have run their course (43%). However, 34% of business respondents believe a referendum should take place before 2017. % responding negative impact
60 50 40 30 20 10 0
Withdrawal Withdrawal & new trade agreement Remain, but transfer powers back Integrate further No change

6%

Employment

14%

28%

Don't know After negotiations have run their course

Health & Safety laws Justice & home a airs Regional Development Environment Agriculture & Fisheries

9% 43%

Should not take place Before 2017

Base: 3,486

Base: 3,345

Base: 2,547
should take place, if ever?

Before 2015

10

20

30

40

50

60

70

What impact will each scenario have on your business?

When do you believe that a referendum on EU membership

Which powers should be transferred back to Westminster?

Business EU Barometer
2nd QUARTER 2013

About the BCC

The British Chambers of Commerce is the national body for a powerful and influential Network of Accredited Chambers of Commerce across the UK, a Network that directly serves not only its member businesses, but the wider business community. Representing thousands of businesses who together employ millions of people, the British Chambers of Commerce is the voice of the whole economy, not just one sector of size group. Accredited Chambers sit at the very heart of local communities across the UK, working with businesses to grow and develop by sharing opportunities, knowledge and know-how.

BCC Comments
These results show that British businesses remain determined to see a recalibrated relationship between the UK and the rest of the European Union, with more powers exercised from Westminster rather than Brussels. Our quarterly survey demonstrates that businesses reject both the Europhile dream of further integration and the Europhobe dream of a complete exit from the EU, provided a satisfactory renegotiation is achieved. For the quiet majority of companies, the status quo is not an option. Ministers must pursue reform and renegotiation as a priority. When asked about the timing of a promised referendum on Britains EU membership, a plurality of businesses 43% - believe that this should happen only when negotiations on a new relationship have run their course. However, fully 34% of business respondents think a referendum needs to take place before 2017, showing that there is impatience among a significant number of companies for greater clarity on the UKs position. John Longworth Director General

Further information
Written and researched by Mike Spicer, Head of Research British Chambers of Commerce 65 Petty France, London SW1H 9EU United Kingdom T +44 (0)20 7654 5800

www.britishchambers.org.uk