Business beyond Brussels

What Brexit means for business engagement

The UK’s decision to back Brexit shocked everyone, even those campaigning for it. Whilst the financial markets have a chance to react immediately, just look at the value of sterling, businesses face a more challenging position – a period of risk and uncertainty. But these can be offset, at least in part, by good political engagement and communications.

Whilst the focus of the effect of the ‘unknown’ has been on UK business, it also applies to those organisations engaged with the UK from across other Member States as well. There are also the potential ramifications for other Member States themselves and what the UK’s decision may or may not do for calls for referendums in these other countries. Critically, however, in the immediate aftermath of the decision, what can companies do wherever they are based across Europe?

1. Put pressure on the UK Government for immediate clarity – there are some issues that the UK Government can decide here. These are critical if investment decisions are to be made, contracts signed etc. If the immediate clarity is lacking then the UK’s economy will take a hit. For instance, there are a number of EU regulations that the UK has already signed up to but have not yet come into effect. Will they?

A new unit has been set up in the Cabinet Office, on the departments of the UK Government, to start work on the UK’s withdrawal from the EU. This should be of interest to businesses across the EU not just UK based ones.

2. Brussels and beyond – the early indications from the EU Commission is that the UK should get on with clarifying what it wants. But with a new Prime Minister to put in place and disarray in the main opposition party, that clarity is unlikely to come anytime soon.

So this means businesses need to set the agenda themselves in whichever country they operate. It should not be left up to the UK Government, a Member State Government or Brussels simply to decide what happens in future. Business needs to have a role as well. That means pushing for a role and engaging with the Brussels institutions and home Governments. To do so effectively, requires being clear on what works for you. Are there laws and regulations that should remain in place?

Unless you advocate for yourself then no-one will.

3. Think ahead – start to plan now what public affairs support you need in the UK. With the UK outside of Brussels, direct engagement may be required. The UK Parliament will want to demonstrate that it is firmly in control. But engagement may also be required with Scotland and London as well. There may not be a single point of entry for political engagement.

4. Brussels will still be important – depending of the nature of the agreement that the UK comes to, Brussels will still be an important consideration for them. The UK could need to comply with new rules that come out of Brussels but have no say over them. That does not stop you from getting involved in the development of those rules.

5. Grasp the opportunitiesas a UK citizen this pains me hugely but the commercial reality is that there are people and businesses to attract to other Member State countries. The shock of the decision needs to be overcome and the commercial realities appreciated by all sides. That means other Member States and businesses doing everything they can to attract businesses, talent and investment from the UK.

There are also a range of other forms of communication that are required – internal and external. But political engagement and the need for ideas has arguably never been more important than now.

Brexit is not just an issue for the UK, it is an issue for all businesses.

Image: iStock

Stuart Thomson

Stuart Thomson leads Bircham Dyson Bell’s public affairs practice. He advises clients on government engagement including political and corporate communications and reputation management. He is the author of several books and writes a blog, www.bdb-law.co.uk/publicaffairsblog