Introduction
A recent BBC report highlights calls from the Confederation of British Industry (CBI) for a “reset” in the UK’s relationship with the European Union. Ahead of the UK–EU summit in London on May 19, the CBI has proposed a series of pragmatic steps to ease friction in areas like trade, labour mobility, and cooperation on energy and defence. But what could these changes mean for British Businesses and the Economy?
1. Easing Cross-Border Labour and Skills Access
The CBI recommends restoring mutual recognition of professional qualifications and introducing youth mobility schemes. While this would not reverse immigration policy, it could create new channels for skilled professionals to work across borders, helping businesses – especially in sectors like health, construction, and finance – address ongoing labour shortages.
Business Impact:
Fewer barriers to talent could support productivity and reduce hiring delays, particularly for SMEs that lack the resources for international recruitment workarounds.
Economic Insight:
Improved access to skilled labour can boost overall economic output and support wage growth, particularly if focused on high-demand sectors.
2. Reducing Trade Friction and Admin
Post-Brexit trade has introduced additional paperwork, particularly for SMEs exporting to the EU. The CBI suggests that simplifying documentation and product certification processes could reduce administrative costs.
Business Impact:
Simplifying trade procedures could make EU exports more accessible to smaller firms, improving competitiveness without requiring full regulatory alignment.
Economic Insight:
Trade simplification can support GDP growth by unlocking dormant export potential especially among SMEs, which make up over 99% of UK businesses.
3. Expanding Energy and Climate Collaboration
Joint initiatives on energy and climate, two areas where the UK and EU share long-term goals, could attract investment into green infrastructure and clean technologies.
Business Impact:
This could create new opportunities for UK firms in energy, construction, and green tech, especially those supplying services or equipment to European projects.
Economic Insight:
Cross-border collaboration in the green economy can support job creation, attract capital, and position the UK competitively in global energy markets.
4. Exploring Defence and Security Co-operation
The proposal includes developing formal mechanisms for UK involvement in EU defence and security efforts. This may open the door to UK participation in joint procurement and R&D programs.
Business Impact:
UK-based defence and aerospace firms may see expanded opportunities to bid for contracts or co-develop technologies with EU counterparts.
Economic Insight:
Participation in international programs can stimulate high-value manufacturing and innovation-led growth, key drivers of long-term economic resilience.
5. Supporting Northern Ireland’s Trade Stability
The CBI report notes the need to address trade and tax challenges in Northern Ireland, where businesses face both UK and EU regulatory requirements.
Business Impact:
Simplifying these arrangements could reduce compliance costs and support cross-border trade within the island of Ireland.
Economic Insight:
A stable trading environment in Northern Ireland is vital for regional growth and investment confidence.
Conclusion
The proposals outlined by the CBI are not about rejoining the EU, but rather about finding areas of practical cooperation that support British Businesses and the Economy. If some or all of these changes are adopted, they could help reduce costs, increase access to labour and markets, and open new opportunities for UK firms across sectors.
At Funding Pool, we’re committed to helping UK businesses navigate change. Whether you’re expanding, adapting to new trade rules, or investing in growth, our finance solutions are designed to support your next step, whatever the economic landscape.
