BCC tells government to stop ‘squabbling’ as PBSC says it needs assurances on travel

British businesses have issued Theresa May with a list of Brexit demands after warning firms are losing patience over the lack of progress in talks with the EU.

A group of Britain’s leading professional and business services firms has written to the prime minister with a list of requirements they say are essential to preserve the £188bn industry with its 4.6m jobs and “keep the wheels of the British economy turning”.

The 42 signatories from the Professional and Business Services Council (PBSC) – which represents law, accountancy, architecture, surveying and advertising firms – said they needed a number of assurances, including that they will still be able to recruit the best talent from overseas.

“The UK needs to get the right deal on professional and other services given our relative strengths and current competitive position,” the business leaders wrote.

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The letter praised a speech by Greg Clark – one that raised the hackles of cabinet Brexiters – in which the business secretary warned that restricting the ability of British workers to travel within the EU could be as dangerous to the economy as a hard trade border.

The intervention comes after a chaotic day in Westminster on which Downing Street sources briefed that ministers would be asked to consider a new “third way” on post-Brexit customs arrangements that would differ from the two proposed by the prime minister thus far.

Ministers have dismissed as unworkable May’s preferred customs partnership option and the Brexiters’ preferred solution – the “maximum facilitation” model where technology would be used to monitor cross-border trade.

Cabinet ministers appeared on Monday to be in the dark as to what the new model would be. No 10 would not supply details ahead of Friday’s Chequers awayday with some cabinet members complaining they had not seen it.

May made an emotional appeal for party unity at a speech at the Conservatives’ summer ball on Monday evening.

“Will we find the boldness, the courage and the discipline to unite as one for the good of our nation and fellow citizens?” she said. “Or will we be divided and allow the scale of the challenge, the complexity of the questions to overwhelm us?”

The British Chambers of Commerce (BCC) has told politicians to stop “squabbling” and put Britain’s economic interests first by reaching agreement at Chequers on Friday. It said time was running out before the 29 March 2019 Brexit date and business patience was “reaching breaking point”.

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The BCC said the government had made “limited progress” on only two of the 23 issues where clarity was urgently needed so firms can plan their trade following the UK’s departure from the EU. The lobby group said while some assurances had been received on the future status of EU nationals, and the industrial standards regime, urgent questions needed to be answered on subjects including VAT, tariffs, customs and regulation.

These include whether a business will need to pay VAT on goods at the point of import and what rules of origin firms will have to comply with to receive preferential tariff rates.

The BCC said crucial questions also remained on whether goods would be subject to new customs procedures and delayed at border checkpoints after Brexit, and whether businesses would be able to transfer staff between the EU and UK using existing processes . Members also want answers on whether or not UK firms will be able to participate in EU research and development projects after 2020.

Over the past fortnight, warnings from firms including Airbus and BMW about the impact of Brexit on jobs and trade were dismissed by cabinet ministers including Jeremy Hunt and Liam Fox, while Boris Johnson reportedly said “fuck business” when asked about industry concerns.

The PBSC called for mutual recognition of professional qualifications and regulatory frameworks after Brexit. It also wants assurances that employees in the sector will be able to fly in and out of EU countries to provide advice and trade across Europe.