IoD members, who represent businesses of all sizes across the country, thought the reform package targeted the right areas, with around two-thirds saying that measures to reduce red tape, confirmation that Britain was not going to be pulled into an ‘ever closer union’, and protections for the UK’s successful financial services sector were important.
The verdict of company directors was that the Prime Minister had secured a reasonable deal. Three times as many IoD members thought the agreement was good for their business, compared to those who thought it was bad. Overall, however, the IoD said that the package was not likely to be the decisive factor in how businesses voted at the referendum, now set for 23 June. Four in 10 directors said that the deal had influenced their vote, but over half had not had their view altered.
Simon Walker, director general of the Institute of Directors (pictured), called on all businesses to think carefully about how the EU referendum would affect them:
“The Prime Minister has fought hard for this deal and has secured positive changes, in particular on reducing the burden of pointless or excessive red tape. Businesses will weigh up the reforms when considering the pros and cons of EU membership as they decide how to vote at the referendum.
“The issue is of course much larger than this agreement. Our members have concerns about the way the EU operates in some areas. But this is balanced against the ability to trade easily across the single market. Their operations are deeply entwined with the European Union – more than three-quarters have commercial links with other member states. It is worrying that 4 in 10 firms have not discussed the referendum in the boardroom. Now that a date has been set, all firms should consider what the potential outcomes would mean for them.
“There are many entrenched opinions on EU membership. Amid all the rhetoric and campaigning, it is vital that people appreciate the consequences for jobs, prices and economic growth. They need to hear what companies think. Business leaders will take different positions, but they should not be afraid to stand up. This referendum is a momentous political choice. Let us make sure it is a well-informed one.
“Businesses are foursquare behind the commitment to reduce the burden of regulation outlined in the agreement. However, most are sceptical about what Brussels can actually achieve. If Britain does choose to stay in the EU and if membership is to be the ‘best of both worlds’ as the Prime Minister has claimed, then reform cannot stop on June 23.”
