UK business leaders urge government to rebuild EU relationship
More than half of UK business leaders want the government to make repairing its relationship with the European Union a top priority, according to new data from the Institute of Directors that lays bare just how much Brexit friction is still costing British firms.
What the survey found
The IoD polled its members and found that 57% believe stronger EU ties should be at the heart of the government’s economic strategy. That’s a striking number. It suggests a significant shift in mood among the executive class — people who, not long ago, were split sharply down the middle on Europe. And it isn’t just rhetoric. Directors cited red tape at the border, surging compliance costs, and difficulty hiring skilled workers from the continent as day-to-day problems that are hitting their bottom lines right now.
Small and medium-sized businesses appear to be feeling the squeeze hardest. Many simply can’t absorb the administrative burden that larger corporations manage with dedicated legal teams.
Why this matters now
The timing is deliberate. The UK and EU are due to hold a formal summit in May 2025 — the first of its kind since Brexit took effect — and business groups are pushing hard to shape the agenda before any deal gets locked in. The IoD is calling for progress on a youth mobility scheme, improved mutual recognition of professional qualifications, and a reduction in border checks on agricultural goods. None of these are revolutionary asks. But they’ve proven politically radioactive for governments wary of looking like they’re rowing back on Brexit.
Keir Starmer’s administration has consistently insisted it won’t pursue single market membership or a customs union. Yet it’s also made no secret of wanting a warmer working relationship with Brussels, which leaves businesses in something of a holding pattern — hopeful but not quite convinced anything concrete is coming.
Business community voices frustration
“Our members are pragmatic people,” said an IoD spokesperson. “They’re not relitigating the referendum. They just want a trading environment that works, and right now too many of them are telling us it doesn’t.”
That frustration has been building for years, but it feels more urgent heading into 2025 with global trade uncertainty already elevated by shifting US tariff policy and a sluggish domestic economy.
What comes next
The May summit won’t produce a sweeping new treaty — nobody seriously expects that. But business leaders are watching closely to see whether the two sides can agree on targeted fixes that ease the most painful pressure points without triggering a full-blown political row at home. If the government can deliver even modest wins on mobility and border checks, the IoD says confidence among its members could recover meaningfully. Still, with both sides entering talks carefully, expectations are being kept deliberately low. The business community, it seems, is used to being patient. But patience, as many directors will tell you, has a shelf life.
