Partner Article

Businesses demand that UK stays in the EU

Over 75% of SME business managers want the UK to stay in the European Union and fear that leaving could damage the economy, according to research conducted by Leeds-based private equity house Key Capital Partners.

This comes as senior Conservatives continue to back calls for Britain to leave the EU and pressure increases on David Cameron to legislate for a referendum.

Tory grandees Nigel Lawson and Norman Lamont called for Britain to quit the EU and are in favour of a referendum on the UK’s membership. Likewise, Education Secretary Michael Gove made it clear that leaving the EU would be “perfectly tolerable” and bring some benefits.

Respondents to Key Capital Partner’s Growth Panel revealed that businesses are concerned that free trade will disappear and, rather surprisingly, that increased red tape will slow down business.

Businesses currently benefit from universal regulations from country to country in the EU but this could all change if the UK leaves. Quitting the EU would also mean all foreign staff would require work permits, making it difficult for businesses to hire quickly.

Owen Trotter, managing partner of Key Capital Partners, said: “Membership of the European Union is a very divisive issue. The survey shows that this is a concern for businesses, the majority of which focus on the benefits that being an EU member bring.

“The EU is the UK’s largest trading partner so it is only natural that businesses should be concerned about a possible exit.”

Key Capital Partner’s Growth Panel is a quarterly survey of business owners and managers in all regions the UK. Businesses were questioned separately on Britain’s relationship with the EU last week.

This was posted in Bdaily's Members' News section by Mark Lane .