Put Customs Union back on the table says FTA

The General Election was called to bring further stability to an already functioning Government and has instead backfired - plunging it into a Hung Parliament - almost a definition of instability.

With Brexit negotiations due to begin, and many doubting the UK’s capability to secure a favourable deal, those who are guiding the process will now be pre-occupied with forming a coalition.

The result also has implications for the House of Commons vote on any final Brexit deal. It puts into question whether there are enough MPs in the House to vote for a deal that, for example, takes the UK out of the Single Market. 

“This morning, UK exporters and importers are waking thinking what does the election result mean for Brexit, and the potential impact on my supply chains,” said James Hookham, FTA’s Deputy CEO. “After four weeks of campaigning for the General Election, vital time has been lost to prepare for the crucial Brexit negotiations. It is now imperative that that the new government focuses its efforts on supporting the logistics sector to ensure that business can continue to trade efficiently with our EU customers and suppliers.”

ParcelHero's Head of Consumer Research, David Jinks MILT said: "ParcelHero has serious concerns over the potential impact of tariffs and Custom’s red tape following a so called ‘Hard Brexit’. A strong win would have strengthened Theresa May’s hand in Brexit negotiations; but that could have resulted in a tougher Brexit deal. Remember her manifesto stated that ‘no deal is better than a bad deal’ - potentially alarming for UK transport companies and exporters. 
 
‘May will now form an alliance with the DUP in order for the Conservatives to remain in office; but there will be an increased need for consensus with other parties - and both the Labour Party and Lib-Dems are in favour of a softer Brexit."

Colin Wilson, Head of UK & Ireland at Cushman & Wakefield added: “A hung parliament is clearly not the outcome that business expected from this election. What we needed, only a year on from the EU Referendum, was a sustained period of political stability in the UK, especially for the important negotiations ahead. Instead, after weeks of domestic campaigning, in place of clarity we have further uncertainty. The result makes strategic planning for business harder and this could result in some decisions being delayed. 

“However, if there is a lesson from our experiences over the last 12 months, it is that UK business, including the real estate industry, has become accustomed to uncertainty and managing through it – as evidenced by the many significant investment and occupier commitments since last June. Leadership, clarity and unity are the three things that business will be looking for now. ”

While some are looking to the Government for guidance, others are looking to lead themselves.

For example, the Freight Transport Association has also drawn up a comprehensive briefing paper to advise members on the main proposals of the European Commission’s ‘Mobility Package’ which was recently announced.

The package, comprising eight legislative files and various accompanying documents, has potentially huge implications for the transport sector - including proposals which would change drivers’ hours rules, tachographs, operator licensing and minimum wage rules for visiting drivers. 

David Wells, FTA Chief Executive, said: “This is a complex set of proposals, and FTA has the breadth and depth of expertise not only to understand what the implications for our members will be, but also to get actively involved in continuing to shape new rules so that law makers recognise the impacts they may have on industry.”
In contrast to the UK stepping back from the EU politically, business organisations are seeking to expand relations.

Wells said: “Europe will always be an important trading block, and therefore critical for the logistics sector. With Brexit looming, FTA is expanding its presence and influence in the capital of the European Union – not, as some might have anticipated, rolling it back.”

FTA will be discussing the proposals with its members in freight council meetings across the country throughout June, and taking the agreed positions to civil servants and ministers in Whitehall, as well as European Commission officials and MEPs in Brussels.

This begs the question, could it be that in future much of our relations with Europe are effectively led by business organisations, with no more than a rubber-stamp from Westminster?

UKWA response

Peter Ward, CEO of the United Kingdom Warehousing Association said: “With the hugely important Brexit negotiations just around the corner, UKWA very much regrets the inconclusive outcome of the general election which has failed to provide the sought-after level of stability.

“We will be monitoring developments over the coming hours and days, and will continue to support our members by ensuring their voice is heard.

“We appeal to the leaders in our resolute sector to provide the calm and security needed.”