UK business leaders have welcomed the breakthrough in Brexit talks which means that, as long as the leaders of the remaining 27 EU nations agree, negotiations will now move on to issues of trade and transition.

EU and UK come to first agreement over Irish borders

The deal hammered out in Brussels in the early hours of Friday guarantees there will be “no hard border” between Northern Ireland and the Republic of Ireland, while maintaining “constitutional and economic integrity” of the UK; protection of the rights to live, work and study for EU citizens living in the UK and for UK nationals living in the EU; and agreement on the principles of the UK ‘divorce bill’.

Will businesses abandon relocations?

While businesses universally welcomed the progress, Royal Bank of Scotland CEO Ross McEwan said the breakthrough was probably not sufficient to make the financial sector abandon plans to relocate some jobs from London to new European hubs on the continent.Mr McEwan said the agreement in Brussels was “good news” for businesses, he told Bloomberg TV that banks would still have to plan for the worst.“Businesses like ours have to move forward as though we are not going to get any form of deal that would good for banking,” he said. “I don’t think we can pause for thought. We have to get in a position of having certain operations so that we can look after customers no matter what happens.”

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EU workers hoping for some certainty

Stephen Martin, director-general of the Institute of Directors, said, “It went right down to the wire, but businesses will be breathing a huge sigh of relief.“The most pressing concern for UK companies has been their EU staff, who have urgently needed certainty about their future in this country.“We have grounds to hope now that our members will be able to send their employees off for the Christmas break feeling more comfortable about their status here.“We call on the UK and EU to build on this positive momentum going into the New Year.“It is overwhelmingly in the interests of both sides to begin working on our future economic relationship – particularly in order to fully address the Irish question.“And we look forward to further clarity about what the UK’s objectives are for that new relationship as well as a firm commitment on transition in the very near future.”

CBI happy with first step in negotiations

Josh Hardie, deputy director-general of the Confederation of British Industry, said companies had been keeping a close eye on the negotiations and that “today’s announcement will lift spirits in the run-up to Christmas – sufficient progress is a present they’ve spent months waiting for”.He added, “It’s now time to focus on the true prize of a new relationship and a deal that starts from 40 years of economic integration. With the same willpower shown today and jobs and living standards at the heart of every negotiating objective, these talks can set the UK up for the next 40 years of close alignment.“There are two things that are top of the list. First is the final step for those EU citizens working here, and UK citizens abroad. It must be unequivocal that they are welcome, whatever the final deal. This cannot be their second Christmas where their rights are dependent on negotiations.“Next is transition. Concrete assurances will build confidence and help firms across the UK and Europe to pause their contingency planning.“Above all, the government has shown the impact of being determined to focus on securing a good Brexit for jobs. Discussions will continue to be tough, but today’s progress shows that careless talk of walking away can be replaced by confidence that the UK can get a good deal. Steely determination in the national interest must always come first.”Stephen Phipson, chief executive of the manufacturers’ organisation EEF, also said that firms were relieved progress in the talks had been made but warned “this is one step forward in a complex and long process”.“So we need to pin down the transition arrangements, which will be in place after March 2019, to ensure it’s business as usual for companies for as long as it takes until a final deal is reached. Until we get to that point, many businesses will need to prepare for any and every eventuality,” he said.

UK welcomes breakthrough of agreements

Adam Marshall, director-general of the British Chambers of Commerce, commented, “Businesses will be breathing a sigh of relief that ‘sufficient progress’ has been achieved. After the noise and political brinksmanship of recent days, news of a breakthrough in the negotiations will be warmly welcomed by companies across the UK.“Business will particularly cheer the mutual commitment to a transition period to support business confidence and trade, and will want the details confirmed swiftly in the new year when negotiators move on to the big questions around our future trade relationship with the EU.“For business, a swift start to trade talks is crucial to upcoming investment and growth decisions. Companies all across the UK want absolute clarity on the long-term deal being sought, and want government to work closely with business experts to ensure that the details are right.“Businesses want answers on what leaving the EU will mean for regulation, customs, hiring, standards, tariffs and taxes. The job of the UK government and the European Commission now is to provide those answers – and do everything in their power to ensure vibrant cross-border trade between the UK and EU countries can continue.”

Brexit moves to second stage

Mike Cherry, national chairman of the Federation of Small Businesses, added, “The UK’s millions of small businesses will be pleased to hear that finally it appears the Brexit talks are about to move on to the second stage.“The focus must now shift to the UK’s future trading relationship with the EU. This should include, by early next year, a guarantee that there will be no cliff-edge moment on Brexit day, but instead an orderly, time-limited transition period so that small firms only have one set of rule changes. The final deal must have as few barriers to trade as possible.”Read more about current issues facing global mobility professionals in the Winter issue of our magazine, coming soon.For related news and features, visit our Brexit section. Look out for the launch of 2018's Relocate Awards, entry open in January.Relocate’s new Global Mobility Toolkit provides free information, practical advice and support for HR, global mobility managers and global teams operating overseas.Access hundreds of global services and suppliers in our Online Directory

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