Business chiefs have warned Theresa May that they urgently needed clarity on the government’s plans for Brexit to help them prepare their companies after the UK leaves the European Union in just 10 months.
After a meeting of the prime minister’s business advisory council at No 10, which included leading firms Tesco, GlaxoSmithKline and BAE Systems, executives suggested that they needed more information on issues such as customs arrangements.
However, it has emerged that the government’s Brexit white paper, which was expected to be published within weeks, could be delayed until after the crunch EU summit at the end of June.
The delay of the document, which was intended to put the UK on the front foot in negotiations but is said to still be “riddled with red ink”, underlines the deep divides that continue to exist in cabinet over customs plans and the Irish border.
May’s spokesman was unable to say whether the white paper, expected to include detail on areas including financial services, security and dispute settlement, would be ready by the Brussels summit. “I’ve not put a timeframe on it, other than we will bring it forward as soon as possible,” he said.
No 10 said the June summit was simply a “staging post” towards Brexit while other government sources suggested that the EU would primarily be seeking progress on the so-called backstop option.
Edwin Morgan, head of media relations at the Institute of Directors, which was represented at the talks, added: “Businesses need clarity about the government’s objectives to help them to plan. Everything is still subject to negotiation with the EU, but we don’t yet know what the UK will pushing for in key areas like customs.
“Our members want to know whether the government’s forthcoming white paper will make clear their intentions on VAT, customs and regulatory alignment – to understand in what areas ministers foresee continued harmonisation with EU rules, and where they want freedom to diverge.”
It has been reported that the UK may seek to stay inside the EU’s VAT area after Brexit, which would require the jurisdiction of the European court of justice, one of May’s red lines.
The business leaders were also said to have warned the prime minister that maintaining frictionless trade with the EU after Brexit was probably more important than the imposition of any tariffs.
After the meeting, a No 10 spokesman said: “The prime minister provided an update on the negotiations … setting out plans to provide greater detail of the future relationship in a white paper due to be published shortly.
“The business representatives expressed their support for this approach, which will build on information provided through the prime minister’s various speeches.“
Brexit secretary David Davis, chancellor Philip Hammond, business secretary Greg Clark and trade secretary Liam Fox were also at the meeting.
Earlier, No 10 insisted the UK would be “fully prepared” for leaving the EU without a deal after reports civil servants have been drawing up scenarios for an “armageddon” Brexit that would leave the country short of medicine, fuel and food.