Plant & Works Engineering

Brexit case highlighted by UK200 Group member

Published:  02 June, 2016

A member of the UK200Group of independent chartered accountancy and law firms has commented on news that more than 300 business leaders have signed a letter calling on Britain to vote to leave the European Union, saying that the country’s “competitiveness is being undermined by our membership”.

In a letter published in the Telegraph, the business leaders say that Brussels’ “red tape stifles every one of Britain’s 5.4 million businesses” and claim that a Brexit would allow them to “create more jobs”. This letter comes after Mark Carney, the Governor of the Bank of England, said that Brexit campaigners are in denial about the economic risk of the UK leaving the EU.

Jonathan Russell, Partner, at UK200Group member firm ReesRussell, said: “There is no doubt talking to my smaller clients the EU has brought them many additional burdens which has not helped their profitability though most would also agree some of those regulations have been better for the overall best business practices. The issue is though the burden which has been placed on them which has no commercial benefit, frequently no relevance to their trading position and has often made them less able to compete in a local or global market. Part of the problem is regulation designed for large business being pushed down to micro businesses but also the failure of the EU to deliver on some of the ‘simplification’ which it has promised. VAT is a classic case where EU registration has long been promised but is still not fully available but additional VAT reporting for many small businesses means trading in the EU is actually harder than elsewhere in the World.”