UK ministers, business clash over Brexit

British ministers have attacked big business, saying their threats to pull out of the country as they seek clarity on Brexit terms could backfire.

The British government and business leaders have clashed in a deepening row over Brexit after a senior minister accused companies of issuing "completely inappropriate" threats and undermining the prime minister.

Aircraft manufacturer Airbus last week issued its strongest warning over the impact of Britain's departure from the European Union, saying a withdrawal without a deal would force it to reconsider its long-term position and put thousands of British jobs at risk.

Other European companies with major operations in Britain have also started to speak out two years on from the Brexit vote, voicing concerns over a lack of clarity on the terms of trade when Britain leaves next March.

"It was completely inappropriate for businesses to be making these kinds of threats for one very simple reason - we are in an absolutely critical moment in the Brexit discussions and what that means is that we need to get behind (Prime Minister) Theresa May," Health Minister Jeremy Hunt told the BBC on Sunday.

"The more that we undermine Theresa May the more likely we to end up with a fudge which will be absolute disaster for everyone," he added.

German car-maker BMW and industrial group Siemens have also said they urgently need clarity.

The leaders of five major business lobby groups have warned the prime minister over the weekend that the ongoing uncertainty about Brexit could cost the economy billions of pounds.

Hunt, a senior figure in the government, dismissed "siren voices" who say Brexit negotiations are not going well and said people should ignore them.

However, Paul Drechsler, the president of leading business lobby group the CBI, said Hunt's criticisms were the "perfect strategy" for discouraging investment and would make it harder to increase tax revenue to spend on matters such as health care.

With only nine months until Britain is due to leave the EU on March 29, little is clear about how trade will flow as May, who is grappling with a divided party, is still trying to strike a deal with the bloc.

Business leaders are increasingly concerned that their concerns are being ignored and are stepping up their contingency plans in case Britain crashes out of the EU without a deal.

The health minister's comments were later echoed by the international trade minister Liam Fox, who said Britain's negotiating position was being undermined by companies urging the government to rule out leaving without a deal.

"People who are making these comments need to understand that they may be actually putting the UK at a disadvantage by making these cases," he told Sky News.


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Source: AAP



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