EU referendum: IGA publishes impartial advice for independents

Voters to be asked if Britain should continue its membership of the European Union on Thursday June 23

EU referendum: IGA publishes impartial advice for independents
The big question: Should the United Kingdom remain a member of the European Union or leave the European Union?

Across the referendum debate, the official leave and remain campaigns have been asked various questions from different groups as to how remaining or leaving he EU will impact small businesses.

The Independent Garage Association (IGA) has complied a series of frequently asked questions with responses from Britain Stronger In Europe and Vote Leave.

If the UK remains in the EU how can we guarantee that small businesses have access to the necessary skilled labour?
Remain:

Within the EU, small businesses can draw on skilled labour from across Europe with no visas, red tape or complications.

Were we to leave the EU, many businesses would find it harder to recruit the brightest and best to help them grow and create jobs.

Leave:

After we Vote Leave, no one from other EU countries would be removed from the UK and no UK citizens would be forced to leave other European countries.

The EU’s own Charter of Fundamental Rights prevents the collective expulsion of British citizens from the EU after we Vote Leave (CFR, art. 19, link).

We will have a sensible regime for the movement of people that allows us to replace the irrational immigration policy we have now.

 

If the UK remains in the EU, will there be further reform on existing legislation to ensure small businesses can run their business?
Remain:

There is a strong consensus between the European Commission and EU member states to reduce and streamline business regulation.

When the new European Commission started in 2014, one of its first actions was to scrap 80 proposed regulations.

It is vital for us to ensure that a strong British voice continues to be heard in the EU’s institutions to advance the interest of small businesses.

If the UK remains in the EU, what guarantee will small businesses have that EU decision makers will take small businesses into account when developing new legislation?
Remain:

Research from the LSE has shown that the UK Government is highly influential in the EU advancing its position 87 per cent of the time.

Its positions on red tape and business regulation are informed by the views of small businesses and the government has driven forward the EU’s better regulation agenda which has been advanced by Commissioner Frans Timmermans.

There are also small business membership organisations at EU-level, where small businesses can engage to ensure their voice is heard by EU policymakers.

The European Commission is ready to listen to small businesses, and has made cutting business regulation one of its key priorities.

If we left the EU, Britain would no longer enjoy this vital influence, but we would still have to comply with EU regulations in order to trade with the single market. We would be rule takers, not rule-makers.

To what extent will SMEs have to comply with EU rules after we Vote Leave?
Leave:

There is no need for Britain to impose all EU rules on all UK businesses as we do now, any more than Australia or Canada or India imposes all EU rules on their businesses.

British businesses that wish to follow Single Market rules should be able to without creating obligations on everybody else to follow them.

The vast majority of British businesses that do not sell to the EU will benefit from the much greater flexibility we will have.

After we vote to leave, we will expand the number of damaging Single Market rules that we no longer impose and we will behave like the vast majority of countries around the world, trading with the EU but, crucially, without accepting the supremacy of EU law.

What EU legislation is likely to remain in place after we Vote Leave?
Leave:

Section two of the European Communities Act 1972 that enshrines the supremacy of EU law.

It must be repealed but it does not make sense to do this immediately.

Changing this is entirely a matter of UK law and what Parliament decides – this decision cannot be overruled by Brussels.

Legislation reality

In the event of Brexit, the EU rules that UK small businesses would have to comply with would be dependent on the trade agreements reached by the UK Government and the EU.

In reality, nobody really knows what EU rules the UK would end up keeping or removing.

This is partly because this is an unprecedented vote, partly because it will be dependent on the new trade agreement and partly because the current government and official opposition are campaigning to remain in the EU.

This means that as of yet, there has not been a statement of intention of which laws will be repealed or left in place if the UK leaves the EU.

 

Can you provide small businesses in the UK with information on the impact to the UK economy of either leaving or remaining within the EU?
Leave:

Since Britain joined the EU in 1973, we have paid over £500,000,000,000 into the EU – that’s half a trillion pounds, or one third of our national debt.

Over the past decade alone, Britain paid over £150 billion to the EU budget.

We send about £350 million to Brussels every week.

If we Vote Leave on 23 June, instead of sending £350 million per week to Brussels, we will spend it on our priorities like the NHS and schools. We may also be able to introduce tax cuts.

On top of this, EU regulation costs UK small businesses over £600 million every week.

If we Vote Leave and take back control, we can reduce this regulatory burden as well as a happy by-product of the process described above.

Remain:

Analysis by Treasury officials has shown that the hit to our economy if we left the EU, of around 6 per cent of GDP (by 2030), would create a £36 billion hole in the public finances.

Closing that gap would mean less money for our public services and higher taxes on businesses.

That would raise costs for small businesses across the country, leaving them less money to invest, and making them less competitive if they wanted to export.

Leaving the single market would leave the average family worse off by £4,300 per year.

The IMF, OECD, HM Treasury, Oxford Economics and others have all already warned about the damage to our economy if we left the EU.

EU referendum report

The IGA has published a detailed report about the referendum with impartial analysis covering the arguments from the remain and leave campaigns on issues relevant to independent garages.

For more information about the IGA click ‘more details’ below or if you have any questions about the EU referendum or how your business could be affected, IGA members should call 0845 305 4230.

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