The “vast majority” of small business owners have lost faith in Theresa May’s Brexit strategy, according to a study by former shadow chancellor Ed Balls.
They accuse negotiators of having failed to engage with industry to understand their needs, and warn that uncertainties have already led to falls in investment and consumer demand.
Mr Balls, now a research fellow at Harvard Kennedy School, co-authored the report “Deal or No Deal?” published today. His team interviewed the owners of 120 small and medium-sized businesses over the course of two years.
The majority of businesses surveyed prefer remaining in the EU over any Brexit option, but a Norway-plus model — which would keep the UK in the customs union and single market — was the next most popular choice.
Firms also preferred the Canada-plus model of a customs partnership, with no single market rules to abide by, over Mrs May’s withdrawal plan.
The report said: “The vast majority of businesses want to remain in the EU, or to see the Brexit negotiations result in a future relationship that facilitates frictionless trade, access to skilled and unskilled labour and aligned regulation.”
The study also found that many organisations felt the Government had not listened to them on Brexit.
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