Business group demands early EU vote

Written By Unknown on Selasa, 10 Februari 2015 | 19.21

10 February 2015 Last updated at 11:44
Ed Balls

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Ed Balls: "Every hint that a referendum could happen as early as next year only adds to the uncertainty and the risk for British business"

The head of one of Britain's biggest business groups has called for a referendum on the UK's membership of the EU "as soon as possible".

John Longworth, of the British Chambers of Commerce, said the vote should be held in 2016 rather than 2017, as promised by David Cameron.

The BCC chief - who wants to stay in the EU - said an early referendum would avoid "years of uncertainty".

But Labour's Ed Balls warned it would be "hugely destabilising".

A Conservative source said if it was possible to hold a referendum earlier than 2017 "that would be fine".

Prime Minister David Cameron has said he will hold an "in-out" vote after negotiating a "better deal" in Europe, if the Conservatives win May's general election.

But in a speech to the BCC's annual conference in London, Mr Longworth will argue that the focus of renegotiations should not be on repatriating powers from Brussels, as Mr Cameron has promised.

He will say: "The next government must set out what it will do to protect the United Kingdom against the prospect of being in a club where all the decisions are made by, and for, the eurozone.

"More than any repatriation of powers, businesses want to know that the UK has safeguards against being drawn closer to the eurozone - especially as history tells us that currency unions inevitably fall apart unless there is real political, economic and social integration."

Analysis, By political correspondent Iain Watson

John Longworth's call for an early referendum on EU membership is significant - the British Chambers of Commerce represent companies which employ five million people. So the organisation's leader's warning that business doesn't want the uncertainty of a long campaign on EU membership won't go unheeded.

But more perhaps significantly, his public comments reflect a private debate taking place at the highest levels of the Conservative Party. Some senior ministers are urging David Cameron - if he remains prime minister - to go for a referendum in 2016, not 2017. Partly this is because of the business climate, but it's also motivated by a desire to signal to potential UKIP supporters that the prime minister is really serious about holding an In/Out vote.

Some senior backbenchers are pushing for the prime minister to name a referendum date before the election, to steal a march on Nigel Farage.

However, one of David Cameron's closest allies on Europe believes he won't want to box himself in. The downside of an early referendum is that it wouldn't give much time to renegotiate Britain's relationship with Brussels. That, in turn, could increase the risk of a No vote. And both the prime minister and the head of the chambers of commerce say they want to stay in a reformed EU.

Mr Cameron will use his speech to the BCC conference to call on Britain's business leaders to give their workers a pay rise.

He will say economic conditions have "not been this good for a long time" and will call on firms to increase wages.

'Mood music'

"Economic success can't just be shown in the GDP figures or on the balance sheets of British businesses but in people's pay packets and bank accounts and lifestyles," the PM will say.

"The most recent figures show that wages are already growing faster than inflation and as the economy continues to grow it's important this continues and that everyone benefits.

"Put simply - it's time Britain had a pay rise."

He will say he is "confident that more businesses will pass on that good economic news to their workers in rising pay cheques and higher earnings".

However, TUC general secretary Frances O'Grady said Mr Cameron's call is "no more than pre-election mood music".

"There are nurses, midwives and public sector midwives across the board who will find it a bit rich that the government is calling for a pay rise for everybody but them," she said.

Unite general secretary Len McCluskey called on the government to "immediately" boost the minimum wage by at least £1.50 an hour.

Labour's shadow chancellor Ed Balls said, in his speech to the BCC conference, that "simply telling people 'they have never had it so good' will only make working people feel politicians are out of touch with their lives".

But the main thrust of his speech was a warning about the risk to the economy posed by an EU referendum.

"Because Britain walking out of the EU is the biggest risk to our economy in the next decade. EU exit risks British jobs, trade and investment and the future prosperity of the UK.

"And every comment by senior Cabinet ministers saying they would be happy or relaxed to see us walk out, and every hint that a referendum could happen as early as next year - before any meaningful reform agenda could be achieved - only adds to the uncertainty and risk for British businesses."

Analysis, by Norman Smith, assistant political editor

David Cameron will be urging business leaders at the British Chambers of Commerce to give workers a pay rise. He won't quite say to them, "You've never had it so good" but his view is the economy hasn't been so benign for business since the crash, with inflation down at half a per cent, growth now bedding in - the fastest growth for seven years - cheap borrowing costs, cheap energy costs, now is the time to pass on some of the profits business is earning in pay rises.

In part that's an attempt to blunt Labour's offensive over the cost of living but I think it also does reflect perhaps an anxiety that although we know pay is gradually beginning to overtake inflation, it's happening very, very late in the day and I think the concern in government circles is will people actually feel better off by the time of the election.

Labour has said it will only sanction a referendum if further powers are handed from the UK to Brussels requiring a fundamental change to existing treaties.

Mr Balls dismissed claims Ed Miliband should have been giving a speech at the BCC conference to prove he is serious about business as "trivial".

"They've got me and (shadow business secretary) Chuka Umunna and this has been timetabled and agreed for months and months. Ed has spoken at this conference many times before... isn't this election about bigger things than that?," he told BBC News.

A Liberal Democrat source said that it was not opposed to an EU referendum in principle but said it should only happen if significant powers were transferred and that its commitment to remaining in the EU "is what most businesses want and what the BCC wants".

UKIP has suggested talk of a 2016 referendum is a "ruse" by the Conservatives and by Mr Cameron, who it says previously "begged for time" for the renegotiation.

The BCC takes a different view on the issue than the CBI - the UK's other leading business organisation - which has argued that a referendum will cause widespread uncertainty.

The TUC has long campaigned for a pay rise for British workers while Mr Balls will say the UK must "deliver rising prosperity for everyone who works hard and plays by the rules".

Liberal Democrat leader Nick Clegg will use his speech to the BCC conference to set a target of helping a million more women into work work by 2020, saying the Lib Dems will require firms with more than 250 staff to publish the average pay of their male and female workers.

SNP deputy first minister John Swinney is among other speakers at the event.

Are you on a low wage? Have you had to go with out a pay rise? You can email haveyoursay@bbc.co.uk with your experience. Please include a telephone number if you are willing to be contacted by a BBC journalist.

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