Easing fears in boardrooms about the implications of an in/out referendum on EU membership will keep Sajid Javid occupied in his new job as David Cameron’s business secretary.
Within minutes of being appointed to succeed Vince Cable, Javid was subjected to the first round of what will be an intense campaign by industry groups, individual companies and foreign governments keen to see Britain remain part of the EU.
Terry Scuoler, chief executive of the manufacturers’ organisation the EEF, said Javid would play an important role in the negotiations, adding: “I am sure he understands that the vast majority of businesses he will now be representing in government want Britain to remain at the heart of a reformed Europe.”
Javid has had a rapid political rise, making it to the cabinet as culture secretary within four years of becoming MP for Bromsgrove in 2010. The Rochdale-born son of a bus driver was a successful City banker before entering politics and has been seen as a possible future leader.
As someone close to George Osborne, Javid shares the chancellor’s sceptical yet pragmatic view of Europe, supporting membership provided that the negotiations are successful.
Britain’s leading employers’ organisation, the Confederation of British Industry, is likely to back that stance. John Cridland, its director general, said the CBI wants Britain to remain part of a reformed Europe. “We want more of what Europe does well and less of what it does badly” he said.
Behind the scenes, Javid will come under pressure from multinational companies and foreign embassies in London. Japan and the US have already made it clear that many companies have based themselves in the UK to get access to Europe, the world’s biggest market.
Europe will not be the only issue Javid has to deal with over the coming months. Business groups are keen for an early decision on expanding airport capacity in the south-east of England and will expect Javid to support the need to spend money on improving infrastructure.
Scuoler said: “Javid will need to focus on three things in particular: building on the success of the previous administration’s work on industrial strategy and ensuring this is applied across government; maintaining funding for important levers of growth, including research and innovation and support for exporters, through UKTI; and helping ensure government delivers the big-ticket infrastructure projects, from the new airport hub, to rail and road improvements.”
Javid also has to decide whether to continue with three of Cable’s policies: tackling abuses involved in zero-hour contracts, gender diversity in the boardroom and having an individual strategy for each of Britain’s key industries.
Small businesses have their own demands. They are seeking urgent reform of business rates and early delivery of a Conservative manifesto pledge to tackle late payment of bills.
