Major business group calls for fundamental change in UK-EU relationship as current system 'failing'

A major UK business group has called on the government to "fundamentally reassess" the country's relationship with the EU, as it said the current system is still "failing to deliver". <p>Businesses are still struggling with a "thicket" of Brexit red tape, according to a research report from the British Chamber of Commerce (BCC) released on Monday.</p><p>The group welcomed Prime Minister <strong><a href="https://news.sky.com/topic/andy-burnham-6817/1" target="_self">Andy Burnham's</a></strong> statements about <a href="https://news.sky.com/story/pm-open-to-honest-discussion-about-return-to-free-movement-with-eu-13603444" target="_self"><strong>needing an "honest discussion"</strong></a> on the relationship with Europe.<strong> </strong></p><p>"He deserves real credit",<strong> </strong>said the BCC's director general Shevaun Haviland.</p><widget id="4"></widget><p>In an interview with The Sunday Times last week, the <strong><a href="https://news.sky.com/topic/andy-burnham-6817" target="_self">prime minister</a></strong> said immigration into ⁠Britain had ⁠been "different" since Brexit, with more foreigners ‌moving permanently.</p><p>He said: "Freedom of movement had very significant challenges associated with it.

Revolving door migration where people would come and then go back is different.</p><p>"The balance of migration has changed since then [the Brexit referencdum] hasn't it? I think we've just got to have an honest discussion about those things."</p><p>However, shadow chancellor Andrew Griffiths told Sky News' Sunday Morning With Anne McElvoy days later: "I want to remove frictions wherever we can. I want great British companies to have the best opportunities to do that.</p><p>"But I don't want to go back to open borders that the British people conclusively rejected."</p><p>Emboldened by Mr Burnham's comments, the BCC wants to secure a new deal that will "better serve the UK economy and stand the test of time".</p><p>Nine different models for the UK-EU relationship should be explored in depth and laid out by government, the BCC said.</p><p>"This is not a binary case of being in or out", Ms Haviland said</p> <widget id="1"></widget><p><strong>Problems to date</strong></p><p>While companies have shown "great resilience" in Brexit adaptation, it has not removed the costs of paperwork, delays and "needless duplication of bureaucracy", she added.</p><p>UK firms have been pushed to the margins of supply chains they once helped build, the BCC said, due to a cocktail of customs, VAT, and regulatory barriers.</p><p><strong>More from Sky News:</strong><br /><strong><a href="https://news.sky.com/story/karl-bushby-latest-adventurer-returning-home-after-28-year-walk-from-south-america-to-hull-13606985" target="_self">Man returns from 28-year walk</a><br /><a href="https://news.sky.com/story/hackers-target-refrigerators-in-ireland-and-european-countries-in-new-wave-of-cyber-attacks-13607013" target="_self">Hackers target fridges around Europe</a></strong></p><p>Rising protectionism within the EU via proposed "Made in Europe" rules would give preference to European goods in public procurement and with subsidies.</p><p>The EU is building "a trade wall"<strong> </strong>to level the playing field with China, which could create "significant collateral damage" for neighbours like the UK, the report authors wrote.</p><p><strong>Cost of inaction</strong></p><p>Among the suggested options to evaluate are a bespoke customs union, a Swiss-style agreement, a European Economic Area (EEA)-style relationship, a combined model, or full EU membership.</p><p>While none were said to be "cost-free", the BCC said the "status quo also carries costs".</p> <widget id="5"></widget> <widget id="2"></widget><p>"The central choice is not between the status quo and turning back the clock.

It is between continuing with repeated, issue-by-issue fixes or building a more stable relationship suited to the economic, trade and security pressures", the report read.</p><p>The government has been told to put out the evidence behind each option, explaining trade-offs, and choosing a relationship that gives businesses the strongest platform to benefit UK residents.</p>