Labour will seek to’stabilise position’ with Europe, rather than reopen Brexit discussion

Shadow business secretary said that Labour would prefer stability in the UK-Europe relationship than to try and accelerate economic growth through joining the EU’s customs union or single market.

Jonathan Reynolds, speaking at the British Chambers of Commerce conference (BCC), acknowledged that the Brexit has been “very hard for businesses”, because it has erected trade obstacles. However, he said that reopening this debate would make things worse.

Reynolds, who was in London to promote the event, made a pitch to business leaders that emphasized policy stability and encouraged them to invest.

Business leaders and economists say that Labour’s hopes of growing the economy and paying for better public services could fail without improved access to EU Trade . Reynolds said that a return to the Brexit debate would have a negative impact on the economy because it would cause businesses to hold back their investments.

He said: “You couldn’t relive the debate and give people the assurance they needed that we were moving into a period in which British politics will be stable, rather than causing you further difficulties.”

“Practical, trade-based agreement that we put forth, rather than constitutional arguments around single markets or customs unions, is a truly better way to achieve that.”

Kemi Bádenoch, Reynolds’ Conservative counterpart, also appeared at the event. She said that a Labour-led government would be a danger to the industry and her party believes in the “power for business to do good”.

The business secretary spent most of her time on “my favorite topic, which is, of course the divisive issue of identity politics”.

Badenoch said that Labour’s plans to monitor racial pay disparities was like apartheid South Africa. She also claimed the policy, which had been suggested by Tory Prime Minister Theresa May in the past, is “morally repulsive” and claims Labour wants ethnicity to affect pay.

Labour’s manifesto doesn’t say that ethnicity should affect pay. The party pledged to “enshrine the full right to equality of pay for Black, Asian, and other ethnic minorities” and to make large companies report the pay gap between disabled and ethnically minority employees and the rest of the workforce. In 2017, the Conservative Party introduced a similar gender gap reporting.

Shevaun Haiviland, director general of the BCC, said at the conference that political parties should stop walking on “eggshells”, and improve the UK relationship with Europe. This includes aligning food and beverage regulations, VAT, and mutual recognition for professional qualifications. She added that Reynolds is right in that “businesses do not want a negotiation”.

Amanda Blanc, chief executive officer of Aviva (a FTSE 100 insurance company), told delegates that there was “an air of cynicism and weariness” over the economy and that some “doom-and-gloom” were justified. She was confident that stable policies after the election will allow businesses to invest and grow the economy.

Labour’s emollient business message contrasts with its 2019 election loss under Jeremy Corbyn. Reynolds stated that the relationship between the Labour Party and the business community was “one the most visible changes since 2019”.

At the conference, he was challenged by business owners who expressed concern about Labour’s promise to give stronger rights such as statutory sickness pay and parental leave from the first day of employment, rather than two years.

Fintan Galvin and Alison Galvin are the chief executive officer and chief people officers of Inv Group in Surrey. They were worried that the new changes would make it more difficult to hire and train workers.

Alison Galvin commented, “It appears very anti-business.” “All of the sudden, you have this potential curveball… You’ve had your probation period but what happens after that?”

Fintan Galvin stated: “To grow your business, you have to take risks.” It is not good to increase the risk of hiring a person.

Reynolds told them that he didn’t believe Labour’s changes to the recruitment process would have any impact on their company. He invited them to come and meet him in person to voice their concerns.

Labour also avoided surprise announcements during the election campaign, sticking to its long-standing policies. Reynolds defended his party from allegations that it ran a dull campaign.

He said that some commentators told him they didn’t find Labour’s election campaign exciting enough. “Look, friends, we are not trying to sell you a Netflix series. We’re also not treating politics like entertainment.”