eu referendum – it’s your business! · accountants and lawyers – who have over 150,000 sme...

Campaign for clarity

EU referendum –it’s yourbusiness!

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Remain LeaveKey questions answered

Questions andanswers for clarity Remain Leave

The European Agriculture Fund for RuralDevelopment, where Britain gets £1.4bnfrom 2014 to 2020, and CAP funding,where the EU has earmarked £20bn forUK farmers until 2020, are vital sourcesof income for our farmers, many ofwhom rely on it for income and may notbe able to sustain themselves withoutthis money. Outside of the EU, ouraccess to this crucial funding would belost.

The leave campaigns make all sorts ofpromises about spending fictionalsavings on the NHS, on agriculture, onschools, but the reality is that leavingthe EU would wreck our economy, andVote Leave have already been called outon having a £14bn black hole in theirspending plans, so farmers cannot trustthem on their fantasy plan for Britainoutside the EU.

If the UK left the EU and did not secure afree trade agreement with it, future UK-EU trade would take place on WTOterms. Some leave campaigners backthis option. Under WTO terms, the EUcould apply ‘Most Favoured Nation’(MFN) tariffs on imports from the UK,

It is not necessary to be a member of thescheme to guarantee funding orsubsidies - the UK supported those whoproduce its food for years before joiningthe EU, and would continue to do soafter we Vote Leave. British farmerswould continue to be supported after weVote Leave. Switzerland, Norway, andIceland all support their farming sectorsoutside the EU and the CAP.

In fact, the payments made by thesecountries are actually more generousthan those paid by the EU to memberstates. David Cameron has guaranteedthat British farmers would continue to besupported, writing to the Country Landand Business Association (CLA) ‘As longas I am Prime Minister, I would make surethat an agricultural support systemwould be properly maintained’ andappears to commit that he would expectany future Conservative government todo likewise (10 Downing Street, 12 April2016). http://bit.ly/1PA3FkS

The independent House of CommonsLibrary concluded that EU membershipactually increases the costs of consumergoods, stating that the EU’s CommonAgricultural Policy ‘artificially inflatesfood prices’ and that ‘consumer pricesacross a range of other goods imported

Agriculture

1 What would happen with farmingsubsidies? Would we keep muchthe same model, and either paythe same and have our farmersreceive more than they do now orpay less and have them receivethe same, or would we move to adifferent model?

2 What changes would there be, ifany, to import and export tariffson agricultural or othercommodity prices?

As part of our commitment to the small and medium-sized enterprise (SME) business community, the UK200Group(http://www.uk200group.co.uk) launched the Campaign for Clarity ahead of the EU Referendum on June 23.

With this in mind, we at the UK200Group asked our members and their clients to contribute the most important business questionsto a document that was then submitted to Britain Stronger in Europe and Vote Leave. The answers were received between 12 and24 May 2016 and are documented in the report.

The UK200Group, established in 1986, represents a significant group of trusted, quality-assured business advisers – charteredaccountants and lawyers – who have over 150,000 SME clients in total. We act as the voice for 1,500 charities, over 10% of allregistered academies, more than 3,700 farms, 800 healthcare businesses and over 500 property and construction professionals.

Below are the answers to the key business questions. The Remain camp, as the nearest to status quo, has had its answers listedfirst under a blue heading, and the Leave camp has its answers underneath an orange heading.

We at UK200Group are impartial in the EU referendum debate and seek only to provide clarity to our members on issues that will affect them. As such, the following answers are provided verbatim from Britain Stronger in Europe and Vote Leave and are combined for the first time in this document. (Issued 14 June 2016)

Campaign for clarity: Vote Leave and Remaincamps answer key SME business questions

including agricultural imports. Thiswould make UK exports to the EU moreexpensive, hitting our trade.

The EU applies an average tariff of 14%on agricultural imports from non-EUcountries (including countries withspecial arrangements with the EU likeNorway and Switzerland). Tariffs couldbe higher on some products – forexample, up to 42% for some dairyproducts.

It would become more expensive totrade in goods if we leave the EU,through new trade barriers and potentialtariffs. This would increase the cost oftrade to businesses, which could bereflected in higher prices.

If we leave the EU, our home market willshrink from 500 million to 65 millionconsumers and we won’t have a say overthe rules of doing business acrossEurope, leaving all the power in thehands of our European competitors. Theuncertainty while any new deal isnegotiated will hit our economy hard –costing jobs, driving up prices andmaking it harder to fund our publicservices.

The Organisation for EconomicCooperation and Development (OECD),International Monetary Fund (IMF), PriceWaterhouse Coopers (PwC), Institute forFiscal Studies (IFS), the Treasury and theLondon School of Economics (LSE) haveall confirmed the UK would be worse offunder Brexit – confirming the economicconsensus that families’ economicsecurity is at risk if we leave.

Treasury analysis has shown that leavingthe single market would leave the UK

from outside the EU are raised as aresult of the common external tariffand non-tariff barriers to tradeimposed by the EU.

These include footwear (a 17% tariff),bicycles (15% tariff) and a range ofclothing (12% tariff)’ (House ofCommons Library, 18 September2013). http://bit.ly/1OamVFc If weVote Leave, the UK is certain to strikea free trade agreement with the EUwhich will allow British farmers to selltheir produce to the EU without tariffsor quotas. The Foreign Secretary,Philip Hammond has admitted that afree trade agreement in agriculturalgoods 'would be relatively simple tonegotiate' (HC Deb 26 Feb 2015, col.501). http://bit.ly/24thRxH

On 5 May 1998, the European Courtrefused to strike down a worldwideban on the export of British beefimposed by the European Commissionin March 1996 during the bovinespongiform encephalopathy (BSE)epidemic (Decision 1996/239/EC;http://bit.ly/24tiA1Q United Kingdomv Commission [1998] ECR I-2265).http://bit.ly/1r9Op2L The ban waseventually lifted by the Commissionon 1 August 1999 after a crisis whichcost the farming industry an estimated£1.5 billion (BBC News, 14 July 1999).http://bbc.in/1U3WwIB TheCommission could do the same thingagain if the UK votes to remain.

After we Vote Leave, the UK wouldimprove upon the trade agreementsthat the EU has negotiated, whichhave generally proved of limitedbenefit to British companies. The rateof the UK’s export growth to third-party countries with which the EU hasa trade agreement has fallen in thecase of two out of every three freetrade agreements that the Commissionhas negotiated (Civitas, January 2016).http://bit.ly/1UtK0iq

Outside the EU, we will be able to strikefree trade agreements with emergingeconomies, such as Brazil, India andChina. This is likely to reduce pricesfor consumers and be good for jobs,growth and investment. If we vote toremain, the UK will be unable to maketrade deals with the rest of the worldas the Eurozone economy stagnates.This means that the UK may well remainunable to trade on favourable termswith major emerging economies in the

Question 2 continued

3 What would happen toagricultural commodity prices ifthere were any trade restrictionsof any type?

Business Growth

4 Our surveys show that thenumber one issue for SMEs isgrowth – it has been the sameissue for four years. Businessconfidence amongst companydirectors drives M&A activity –whether it be the confidence ofgrowth or the ability to raisefinance. What impact will thedecision to leave or stay have onthe growth prospects of SMEs?How would it affect investmentgoing forward?


worse off by £4,300 for everyhousehold. Over 3 million jobs arelinked to our trade with the EuropeanUnion (Source: HM Treasury).

Key Points from The Charity CommissionGuidance (March 2016):

‘In exceptional cases, charities mayconsider that the outcome of areferendum is likely to affect directly,positively or negatively, the delivery oftheir charitable objectives.’ (p.1)

‘Political activity can only ever beundertaken in support of your charitablepurposes.’ (p.1)

‘You should be able to explain why youare getting involved in the EUReferendum and how you reached yourdecision to do so.’ (p.2)

When making a decision, Trustees mustensure there is a written record of thedecision making process. The minutesshould include:

How the action agreed furthers andsupports your charitable purposes

The basis on which you have decidedthat the activity is in the best interest ofyour charity within its charitable objects

The risks involved that you haveidentified and how you will avoid themwithin charity law

Any conflicts of interest that you have identified and how you propose to deal with them.

EU funding helps charities work withpartners across the continent and tofoster civil society. 249 different UKcharities and third sector organisationsbenefitted from over £217 million in

years ahead, while remaining tied to thefailing Eurozone.

Investment into the UK from the EU willcontinue after we Vote Leave. Surveysof international investors show that theywant the UK to have looser links withthe EU (EY, 2013). http://bit.ly/1Px8XuGThe pro-euro campaign made all sortsof claims that investment wouldcollapse unless we joined the euro (BBCNews, 12 May 2003).http://bbc.in/1Y3ezRD It didn’t happenthen and it won’t happen if we VoteLeave.

This is a decision for the UK public, andwhile Vote Leave welcome everyone’scontributions to the campaign, thisought to be respected, particularly bythose who may have conflicts ofinterest through receipt of EU funding.

We pay into the EU twice as much aswe get back. Every year, we give theEU nearly £20bn, over £350m everyweek. For 40 years we have been netcontributors to the EU. Were we to


Charity and Education

5 What is your advice to charitieswishing to make known theirviews on Brexit given the warningissued by the Charity Commissionthat charities should only enterthese under exceptionalcircumstances, and that thosewho do will be watched carefullyby the regulator?

6 A great many charities and socialenterprises receive vital fundingthrough European Grants. Whatwill replace this funding if the UKvoted to leave?

funding from the EU in 2014. Examplesof British charities that have beensupported by EU funding include Oxfam,which received more than £38 million,the International Rescue Committee,which got over £22 million and Save theChildren, which received more than £19million.

The Leave campaigners are unable toguarantee that EU funding will bereplicated if we leave the EU.

UK charities are set to benefit greatlyfrom EU funding over the next years:

l EU Structural Funding, where Britainreceives £8.3bn from 2014 to 2020, isused across the country to help peopleinto jobs, create apprenticeships, andprovide skills training for workers

l EU research and developmentfunding, where under the last funding round our universities and SMEs received £5.6bn (and the budget for the next funding round is the biggest ever), helps Britain lead the world in science and research.

This is a question for Leave campaigners

It’s clear that our universities arestronger in – they benefit from greatopportunities through EU funding forscience and research cooperation.

Over 200,000 UK students have spenttime abroad on the Erasmus exchangeprogramme. Students who haveundertaken placements on the Erasmusprogramme are 50% less likely toexperience long-term unemploymentthan their counterparts.

Outside of the EU, we could lose accessto vital funding for UK universities andour students, which would hit us hard.

leave, we would not only be able tomatch the EU’s current funding butwould also have a large reserve of newfunds to tap into, funds that could beinvested in our priorities, including theNHS, but also deserving charities andsocial enterprises. All that happensnow is that these groups get some ofthe UK’s money back.

It is anti-democratic to support asystem that privileges the decisionsmade by unelected bureaucrats inBrussels over the decisions of electedpoliticians and UK voters. If UK votersconsent to being taxed in order toprovide the funding for thesecharitable and social enterpriseorganisations, there is no reason tofear such a loss in funding. If anything,funding in this area could wellincrease, after we no longer send£350 million to the EU every week.

The UK is an unchallenged leader inthe provision of university educationin Europe, with our universitiessignificantly outperforming those ofother countries in the region. The UKhas the three top universities inEurope - Oxford, Cambridge, andImperial College London. 34 of thetop 200 universities in the world areUK institutions. This is over a third ofthe 91 universities based within the EUin the top 200.

Given this, and that the UK is a netcontributor to the EU budget, afterwithdrawal from the EU it couldreplace the funding currently providedto UK universities, or alternativelyparticipate in such programmes (eg.ERASMUS+) without being a memberof the EU. There is no prospect ofstaff or students who are EU nationals


7 Recent polls suggest that theoverwhelming majority ofindividuals running charities andsocial enterprises will vote to stayin Europe. What would thosecampaigning to leave say to themto allay fears that funding to thesector will be lost?

8 Universities UK, which representsvice chancellors, has said thatleaving the EU will have anegative impact on the standardof higher education, woulddamage scientific research anddamage graduate job prospects -please comment



Employment

9 Many SMEs cannot find the skillsthey need to do the work theyhave, so free movement of peopleis important. How will SMEs’ abilityto find and retain the right peoplebe affected? This applies acrossthe board, from minimum wageworkers to skilled professionals.

10 The UK relies on the freelancecommunity to provide a highlyskilled flexible workforce, as domost other EU countries. With somany UK freelancers physicallyworking elsewhere in the EU or atleast their clients being basedthere, having unified andrelatively simple VAT rulescombined with mobility of labouris key. There is enough red tapein operating a small limitedcompany – will leaving the EUhelp or hinder this businessmodel?

Within the EU, small businesses candraw on skilled labour from acrossEurope with no red tape orcomplications. Were we to leave the EU,many businesses would find it harder torecruit the brightest and best to helpthem grow and create jobs.

Leaving the EU single market wouldprove a nightmare for any business thatwants to recruit or trade with the EU.Independent experts at the LSE havepointed out that if Britain left the EU itwould lose access to the coordinatedVAT collection of the EU, so a 20% VATwould need to be paid at the UK borderand the importer would no longer havethe convenience of combining this withdomestic VAT payments.

and currently lawfully resident in the UKbeing removed. Universities UK, in their2014 annual report, noted that they hadlobbied the Government to mitigate theimpact of the Immigration Act 2014 onnon-EU students. However, the currentrestrictions placed on non-EU studentsare only likely to be lifted if the UK hasthe ability to control economicmigration from the EU, which will onlybe possible following withdrawal(Universities UK, July 2014).http://bit.ly/1U3W6BW

After we Vote Leave, the UKGovernment could introduce animmigration system that is fair andworks for the UK’s economic interests.The EU’s immigration system is immoral,expensive and out of control. EU lawdemands that the UK has an open doorto European countries, whilesimultaneously stopping highly skilledpeople from outside the EU coming tothe UK to contribute. This has resultedin large numbers of people from acrossEurope coming to our country.

After we Vote Leave, our VAT ruleswould no longer be determined by EUlaw. The Government accepts that VATrules for cross-border trade ‘can becomplex and confusing’ and that ‘UKbusinesses also experience delays in theprocessing of cross-border VAT refundsin some EU Member States’. The annualcost of completing VAT declarations inthe EU is estimated to be €40 billion(BIS, February 2014).http://bit.ly/1mwFhk9

Outside the EU’s common system ofVAT, we could simplify VAT rulessubstantially. After 40 years ofmembership, only around 6% of Britishcompanies export to the EU, but 100%are caught by EU red tape and have tocomply with the full burden of EUregulation (Business for Britain, January2014). http://bit.ly/1VKbjuRThis is damaging. If we take backcontrol we can run our economy in theinterests of millions of small businessesand entrepreneurs.

11 At present the freedom ofmovement within the EU allowsthe NHS to fill staff shortageswith workers from outside the UK.What would happen to this is wewere to leave the EU? Wouldthere be restrictions on recruitingnew staff and would this result ina shortage of skilled workers?

12 If the UK leaves the EU, willworkers be at risk of no longerbeing protected by the WorkingTime Directive?

Over 100,000 EU nationals work in thehealth and social care sector. If we leftEurope, our ability to staff the NHSwould be put at risk, causing waitingtimes to go up and the quality of care togo down.

Treasury analysis shows that theeconomic damage from leaving wouldleave our tax receipts facing an annual£36 billion black hole. That’s theequivalent of NHS England losing over athird of its budget. Hospitals,ambulance services, and healthprofessionals are all at risk if we leaveEurope.

The people campaigning to leave theEU, including Nigel Farage and VoteLeave Director Matthew Elliot, have foryears campaigned to privatise the NHS.They can’t be trusted with the NHS.

Just 1% of government spending goes tothe EU, about £7 billion. If we left theEU, the Treasury estimates publicspending would be hit by £36 billion.It’s simply not true that leaving the EUwould free up resources for the NHS. Itwon’t. Leaving means less money forthe NHS, not more.

Workers’ rights are protected by EUlegislation, including entitlements topaid holiday of at least four weeks ayear, maximum working hours, anti-discrimination laws and statutory paidmaternity and paternity leave. If we leftthe EU, a future government would nolonger be bound to adhere to thesehard-fought protections and minimumstandard.

Many of those campaigning to leavehave called for worker’s rights to bescrapped, viewing them as unnecessaryred tape. Workers are better off in, andthis is why over ten trade unions,including the TUC, Unite and Unison,have backed remain.

EU freedom of movement rulesactually undermine patient safety.Despite the General Medical Council’sobjections, EU law requires the UK torecognise automatically thequalifications of doctors trained inother EU member states. 10.9% ofdoctors registered in the UK qualifiedin another EU member state. EU lawmeans it is not possible for theGeneral Medical Council (GMC) torequire all EU doctors currentlypracticing in the UK to undergosystemic language tests (EuropeanCommission, 22 June 2011).http://bit.ly/1UtK69W

Whilst it is true that the UK is morereliant than many other countries onforeign healthcare professionals, avote to leave the EU would allow theUK to recruit more highly skilledhealthcare professionals from outsidethe EU. We would also have sufficientfunds available to invest in trainingand retaining UK doctors and nurses. According to the British MedicalAssociation (BMA), one of the maincauses of the junior doctors’ strike isthe end of automatic annual payprogression. If we Vote Leave on 23 June, we could afford to reintroduceautomatic annual pay progression,which would cost just under £1 billionand is just 5% of our annual contributionto the EU (Vote Leave, 25 April 2016).http://bit.ly/1ZrvUTi We could also usesavings from our contribution to theEU to prioritise training more doctorsand medical staff in the UK.

The Working Time Directive (Directive2003/88/EC) http://bit.ly/1tc3Vguhas given the European Court controlover doctors’ working hours. 71% ofdoctors think the Directive has had anegative impact on the continuity ofpatient care and has harmed medicaltraining. 93% of surgeons did notagree with the state-ment that theimplementation of the EuropeanWorking Time Directive has benefitedthe NHS. An overwhelming majorityof medical graduates (58% to 17%) saythe Directive has not benefited theNHS. (Journal of the Royal Society ofMedicine, 1 March 2016).http://bit.ly/1tc3Vgu The EuropeanCourt will remain in control of doctors’working hours in the event of a vote toremain.

After we Vote Leave, it would be forthe UK Parliament to legislate in thisfield, protecting workers’ rights to notbe overworked in a manner which isproportionate, ensuring that this does



13 If we stay within the EU will theNHS be at risk from harmonisinghealthcare across the EU to thedetriment of the UK healthcaresystem? Will we lose control overhow the NHS funds are used?

High Net-Worth Individuals

14 I run a business with offices invarious European countries. Howwould Brexit affect my business interms of taxation, cash movementand employment?

Nobody is telling us how to run our NHS– this is a matter entirely for the UKGovernment and our Parliament todecide. Treasury analysis shows that theeconomic damage from leaving wouldleave our tax receipts facing an annual£36 billion black hole. That’s theequivalent of NHS England losing over athird of its budget. Hospitals, ambulanceservices, and health professionals are allat risk if we leave Europe.

Over 100,000 EU nationals work in thehealth and social care sector. If we leftEurope, our ability to staff the NHS wouldbe put at risk, causing waiting times togo up and the quality of care to go down.

The people campaigning to leave the EU,including Nigel Farage and Vote LeaveDirector Matthew Elliot, have for yearscampaigned to privatise the NHS. Theycan’t be trusted with the NHS.

Just 1% of government spending goes tothe EU, about £7 billion. If we left theEU, the Treasury estimates publicspending would be hit by £36 billion. It’ssimply not true that leaving the EUwould free up resources for the NHS. Itwon’t. Leaving means less money for theNHS, not more.

Outside of the EU, EU countries wouldbe free to discriminate against UKbusinesses, and could impose taxes orother burdens.

Without free movement of people, non-local staff could face work permits, visasor residency requirements to work in EUcountries. Outside of the EU singlemarket, the UK could not benefit fromfree movement of capital in the EU,which means it would be more difficultand costly to transfer capital betweenmarkets and invest in the EU.

not have the harmful effect it currentlydoes in undermining people’s health. Itwould be for elected politicians and UKvoters, or our own domestic courts, todecide these rules rather thanunelected bureaucrats in Brussels andforeign judges in the European Court.

Some areas of healthcare are alreadybeing harmonised by the EU. TheClinical Trials Directive (Directive2001/20/EC) http://bit.ly/25IJ6u6 wasintended to harmonise regulation ofclinical trials. Academic studiesconcluded within eighteen months thatit ‘resulted in a doubling of the cost ofrunning non-commercial cancer clinicaltrials in the UK and a delay to the startof trials’ and ‘both increased the costand caused delay to non-commercialcancer clinical trials run by major publicsector Clinical Trials Units in the UK’(European Journal of Cancer, 2007).http://1.usa.gov/1suddnr

The introduction of centralised HealthTechnology Assessments could put anend to the UK’s Cancer Drugs Fund.The Transatlantic Trade and InvestmentPartnership currently being negotiatedbetween the EU and USA also puts ourNHS at risk of privatisation and losingcontrol to American pharmaceuticals.

After we Vote Leave we would takeback control of decisions in these areas,but there is no reason to fearuncertainty in the short term.

15 I am thinking of expanding myproperty portfolio, perhaps inFrance or Germany. How wouldBrexit affect my investment, interms of exchange rates and tax?

16 My fund manager can currentlyaccess the European markets withease. Would this become moredifficult in event of Brexit, andwould my fund manager’scharges rise, or my return oninvestment fall?

International

17 What impact will the decisionhave on companies that export tothe EU, and also on overseascompanies who have invested inthe UK in order to access the EUsingle market?

Outside of the EU, EU countries wouldbe free to discriminate against UKinvestment, and could impose taxes orother burdens. Analysts at GoldmanSachs, Morgan Stanley, HSBC and othershave shown that Sterling would fall byup to 20%, and UBS have even predictedthat Sterling could reach parity with theEuro – making it more costly to buy inEU countries.

Outside of the EU single market, the UKcould not benefit from free movementof capital in the EU. It would also meanthat the EU and the individual EUcountries would be free to discriminateagainst foreign investors. For both ofthese reasons, it would be more difficultand costly to transfer capital betweenmarkets and invest in the EU.

Currently, anyone in Britain can dobusiness freely and seamlessly with 500million customers in the EU singlemarket. If we leave, there would be newbarriers to trade, which would make itmore difficult and more costly to dobusiness.

If we leave the EU, our home market willshrink from 500 million to 65 millionconsumers and we won’t have a say overthe rules of doing business acrossEurope, leaving all the power in thehands of our European competitors. Theuncertainty while any new deal isnegotiated will hit our economy hard –costing jobs, driving up prices andmaking it harder to fund our publicservices.

The Organisation for EconomicCooperation and Development (OECD),International Monetary Fund (IMF), PriceWaterhouse Coopers (PwC), Institute forFiscal Studies (IFS), the Treasury and theLondon School of Economics (LSE) haveall confirmed the UK would be worse offunder Brexit – confirming the economicconsensus that families’ economicsecurity is at risk if we leave.

Treasury analysis has shown that leavingthe single market would leave the UKworse off by £4,300 for everyhousehold. Over 3 million jobs arelinked to our trade with the EuropeanUnion (Source: HM Treasury).

There is no reason to anticipate achange in exchange rates after weVote Leave. If we Vote Leave, it isunlikely that there will be anysubstantial effect on the currency.The UK will retain its powers overmonetary policy, keep sterling, andtake back control of the regulation offinancial stability.

After we Vote Leave, we will continueto have access to European markets.London will remain Europe’s premierfinancial centre outside the EUbecause of its existing infrastructure,common law legal system, extensivehuman capital, use of the Englishlanguage and convenient time zone. Itwill be in the interests of EUnegotiators for the UK to retainaccess, as key European firms wouldnot wish their access to London’smarket to be restricted.

There is a free trade zone from Icelandto Turkey and Britain will be part of itbut we will escape the EU’s andEuropean Court’s ultimate control.The UK will have access to the ‘singlemarket’ after we Vote Leave. Britishbusinesses that want to sell to the EUwill obey EU rules just as American,Swiss, and Chinese businesses do.

The idea that our trade will sufferbecause we stop imposing terrible rulessuch as the Clinical Trials Directive issilly. The idea that ‘access to thesingle market’ is a binary conditionand one must accept all ‘singlemarket’ rules is already nonsense. TheSchengen system is part of the ‘singlemarket’ and we are not part of it.

After we Vote Leave, we will begin torepeal damaging ‘single market’regulations, and we will behave likethe vast majority of countries aroundthe world - trading with the EU but,crucially, not accepting the supremacyof EU law.

The Government has admitted that:‘Under the EU-Canada Agreement, theEU has recognised Canadian assess-ments’ (HM Government, March 2016,link). http://bit.ly/1OPaQi2 Mutualrecognition of standards will be partof the UK-EU trade agreement too.

After we Vote Leave, businesses thatexport will of course keep trading withthe EU as they do today, and all the



18 At a time when relations betweenour two countries have neverbeen better, what impact do youthink Brexit will have on therelationship between Britain andIreland?

Legal

19 As we have had a history of inputregarding European legislation, isit expected that the UK legalprofession, if we exit the EU,continue to bear strong influencefrom Europe, particularly in thearea of Human Rights and crossborder matters?

The Irish Taoiseach Enda Kenny andIreland’s foreign minister have both beenclear in their warnings that Britain isstronger in the EU, and they havewarned that Brexit would harm thepeace process.

Trade and tourism between the UK andIreland would be damaged by Brexitthrough the establishment of new tradebarriers and the loss of freedom ofmovement.

Vote Leave have rejected Britain’sparticipation EU free movement rules ifwe leave the EU. In practice, this meansthat ROI nationals would lose theirautomatic right to come and work in theUK, and vice-versa.

The new terms for employing EU citizensin Britain depend on what relationshipwe would have with the EU after we left.Vote Leave’s Dominic Raab has said thatUK nationals would need visas in orderto travel and work in Europe, and VoteLeave’s Lord Lawson has said that Brexitwould mean controls at the Irish border,suggesting that free movement for Irishcitizens would be curbed.

This means that employing EU citizens,including ROI nationals, would besignificantly more difficult after Brexit,and is likely to involve restrictions andbarriers in the form of permits, visas orother costs and bureaucracy.

If we leave the EU, we would still be partof the European Convention on HumanRights (ECHR), which is not a part of theEU. This is a binding convention tied tothe European Court of Human Rights inStrasbourg which the UK is signed up to,so this would remain, and would be alasting European legal influence in theUK.

opportunities currently enjoyed inaccessing its market will continue, butthey will also have greater opportunityto export and trade internationallybeyond the EU as well, through thestriking of new free trade deals that haveto date been frustrated through the EU.

After we Vote Leave, the relationshipbetween the UK and Ireland will beeven stronger. The EU has alreadyacknowledged the UK and Ireland havea special status. The UK and Ireland arepermitted by the EU Treaties to retainthe Common Travel Area, even thoughthis discriminates against other EUcitizens (Article 2 of Protocol 20 to theTreaties). http://bit.ly/1ZrwO24

It is also consistent with EU law for theUK to pay higher welfare benefits toIrish citizens than it does to nationals ofother EU member states (Patmalniece vSecretary of State for Work andPensions [2011] UKSC 11, paras [54]-[60], link). http://bit.ly/1Peoih8

There is no prospect of customscontrols being introduced betweenNorthern Ireland and the Republic ofIreland if we Vote Leave. It isn't in theinterests of Northern Ireland, theRepublic, or the UK and it won'thappen. The Common Travel Area andIrish citizens’ right to live, work and votein the UK will continue.

The passport-free Common Travel Areahas existed since 1923 and will continueif we Vote Leave. The Common TravelArea has been enshrined in UK lawsince before we joined the EU(Immigration Act 1971, s. 1(3)).http://bit.ly/1WBWzij This legislationpredates the UK’s entry into the EU. Itdoes not depend on EU membershipand would continue in force if we VoteLeave.

While we remain in an unreformed EU,the UK lacks the power to ‘break theformal link between British courts andthe European Court of Human Rights’,as was promised before the lastelection (Conservative Party Manifesto,2015). http://bit.ly/1Um8Yk4 Allowingthe European Court to stay in charge ofthese matters will cause great


20 Being so closely tied to Europe, inor out, will our legal professionstill have any influence onEuropean issues, or can we returnto a legal system not hamperedand / or handcuffed by EUlegislation?

21 Is it possible that Legal Aidfunding could increase withoutthe need to fund our commitmentto the EU?

22 What impact would it have on theSupreme Court?

It is abundantly clear that the UK willlose influence if we leave the EU. Britainis a champion in many fields and acrossprofessions, and our knowledge andexpertise influences others.

We benefit from EU funding and EUschemes, which help us project andinfluence others.

If we leave the EU, not only will we loseour vital influence and say overdecisions in the EU institutions, we willalso lose access to countless researchand cooperation programmes throughwhich our world-leading expertscurrently help shape global thinking.

Leaving the single market would meanan annual £36 billion black hole in thepublic finances, which would mean lessmoney for our public services like LegalAid funding.

If we leave the EU, we would still be partof the European Convention on HumanRights (ECHR), which is not a part of theEU. This is a binding convention tied tothe European Court of Human Rights inStrasbourg which the UK is signed up to,so UK courts would continue to bebound by this legal framework.

uncertainty for business as it uses theCharter of Fundamental Rights to takemore powers from the member states.After we Vote Leave, it would be forthe UK Parliament and UK SupremeCourt to decide the appropriatemeans and levels of UK Human Rightsprotections.

Inside the EU, the UK will remainconstantly outvoted by the Eurozone,with the result that damaging EUlegislation will continue to be imposedon us. The UK has been outvotedevery time it has voted against an EUmeasure - 72 times in total. 40 ofthese defeats have taken place sinceDavid Cameron became PrimeMinister (Vote Leave, October 2015).http://bit.ly/1U9utZv The UK has noinfluence at present.

After we Vote Leave, we will be ableto influence global standard-settingbodies more effectively and regain aninfluential voice on the world stage.Many EU rules are actually set at aninternational level. EU members havelittle influence on this because theCommission speaks for them in keyinternational bodies.

The Commission often addsunnecessary bureaucracy to globalrules for EU-based producers, andthese EU rules are then extremelyhard to change. After we Vote Leave,we would take back control of ourseats in these organisations, and bebetter able to influence global andEuropean policy.

We send more than £350 million tothe EU every week, and after we VoteLeave, we would take back control ofthis money and could ensure that it isspent on our priorities. It would be forthe UK Parliament and UK voters todecide whether they would wish toincrease funding for Legal Aid, butthere would be financial resourcesavailable for this, that we would nolonger need to send to the EU, shouldthey choose.

The UK Supreme Court would becomethe UK’s court of last resort. It wouldno longer be subject to the primacy ofEU law, and need to follow thedirection of the European Court.


23 What would be the cut off forcases going to the EuropeanCourt of Justice?

Legislation and regulation

24 EU rules are implementedthrough UK legislation: EUdirectives merely shape the UKlaws. Taking away therequirement to follow EU rulesdoesn’t mean that UK legislationimmediately changes, although itallows different changes in thefuture. Will the jelly changeshape when you take the mouldaway?

25 Changes in tax rules, anduncertainty over tax rules, causesignificant problems for SMEs.Does leaving the EU give SMEsmore clarity over the future of UKtax, or less?

26 What are the top 3 tax issues youwould change if Brexit gave youthe opportunity? Or, conversely,what are the 3 biggest taxchanges that would be forced onthe UK?

This would depend on the kind of futurerelationship Britain would have with theEU.

It is vital for us to ensure that a strongBritish voice continues to be heard in theEU’s institutions to advance Britain’sinterests.

The UK Government is very influential inthe EU, and we can use the EU toachieve things that would be moredifficult on our own.

If we left the EU, Britain would no longerenjoy this vital influence, but we wouldstill have to comply with EU regulationsin order to trade with the single market.We would be rule takers, not rule-makers.

We retain complete control of taxation,our currency, public spending, interestrates, crime and security policy, as wellas public services such as healthcare,education and public transport.

The Prime Minister’s EU deal protects usfrom further integration in Europe –known as ‘ever closer union’. So thefuture of taxation in Britain is a matterfor the British government andParliament, and leaving the EU wouldnot impact it.

We are a political campaign making thepositive case for Britain to remain in theEU. Taxation in the UK is a matter forGovernment and Parliament.

After we Vote Leave, it would be for theUK and the EU to determine the cut off.After we Vote Leave, we would expectParliament to legislate to amend orrepeal the 1972 Act which gives theEuropean Court control over our law.However, the referendum will have nolegal consequences save for thecertification of the result by the ChiefCounting Officer (Political Parties,Elections and Referendums Act 2000,s. 128(6)). http://bit.ly/1tc5Fq7 Afterthe UK voted to leave, it wouldtherefore initially continue to be amember of all the EU institutions underthe EU treaties with the voting rights ofa full member.

The day after, nothing changes legally.There is no legal obligation on theBritish Government to take Britain outof the EU immediately. There will bethree stages of creating a new UK-EUdeal - informal negotiations, formalnegotiations, and implementationincluding both a new Treaty anddomestic legal changes. There is noneed to rush. We must take our timeand get it right.

There will be more clarity. At themoment the future is very uncertain.The Five Presidents’ report indicatesthat the EU intends to take furthercontrol over ‘certain aspects of taxpolicy’ including the ‘corporate taxbase’, ‘labour taxation’ and as part of its‘Capital Markets Union’ (EuropeanCommission, 2015). http://bit.ly/1Yiyr1b

The Economics Commissioner, PierreMoscovici, has called for furtherharmonisation of taxation, includingscrapping the UK’s zero rates, stating a‘zero rate is not the best idea’(Guardian, 28 January 2016.http://bit.ly/1lWe9gr If theCommission’s plans are successful,business taxes would rise by over £70


27 What impact does EU membershiphave on the convergence of taxrates and tax rules? We note thatthe Organisation for Economic Co-operation and Development(OECD) and G20 have a lot to sayin this area, and convergence hasan opposing force in taxcompetition. Is the EU more orless influential than, say, theOECD?

We retain complete control of taxation,our currency, public spending, interestrates, crime and security policy, as wellas public services such as healthcare,education and public transport. ThePrime Minister’s EU deal protects usfrom further integration in Europe –known as ‘ever closer union’.

We are also not part of the euro andcannot be forced into political, fiscal ormonetary union with the Eurozone, sothe taxation in Britain is a matter for theBritish government and Parliament, andleaving the EU would not impact it.

billion a year (HMRC, December 2015).http://bit.ly/1RVp02C

If the UK votes Remain, the EuropeanCourt will remain in control of thetaxes Parliament can charge and willcontinue to make massive awardsagainst the taxpayer in favour ofmultinational businesses. It hasdetermined that tax rules whichdiscriminate against foreigncompanies establishing branches inthe UK are in principle prohibited byEU law, and fall foul of the freedom ofestablishment, even if they areintended to reduce the risk of taxevasion. In 1986, the European Courtsaid that ‘the risk of tax avoidancecannot be relied upon in this context…[The] treaty does not permit anyderogation from the fundamentalprinciple of freedom of establishmenton such a ground’ (Commission vFrance [1986] ECR 273, para [25]).http://bit.ly/1RVp02C

As things stand today, it is ultimatelyfor the European Court, rather thanthe British Parliament, to judgewhether measures designed to reducetax avoidance are necessary and‘proportionate’ (Marks & Spencer Plc vHalsey [2005] ECR I-10837, para [53]).http://bit.ly/25IIIvB In 2014, forexample, the European Court ruledthat certain provisions of the Incomeand Corporation Taxes Act 1988designed to restrict ‘wholly artificial’arrangements and tax havens andwhich limited certain companies’ability to claim ‘group consortiumrelief’, could not be justified under EUlaw (Felixstowe Dock and RailwayCompany Ltd v Commissioners forHer Majesty's Revenue & Customs,Case C-80/12). http://bit.ly/24tk10kThis case alone allowed one companyto offset £1 billion of losses againstlinked companies’ tax bills (FinancialTimes, 1 April 2014).http://on.ft.com/1Xx8uP7

The Five Presidents’ Report sets outplans for a Eurozone fiscal and‘political union’, including ‘a euro areatreasury’, and ‘further pooling ofdecision-making on national budgets’,with proposals for a new Treaty in 2017(European Commission, 2015).http://bit.ly/1Yiyr1b The UK will beaffected by this process, since theCommission argues that ‘much can beachieved already through a deepeningof the Single Market, which is importantfor all 28 EU Member States’ [emphasisadded]. This means that the proposalswill affect all member states - not just



28 How would National Insurancework if we were not in the EU? If Iwork in France before and afterBrexit, what effect is there on myUK state pension?

29 What, in practical terms, wouldchange about SME VAT if the UKwere to leave the EU? Wouldthere be any effect on theamounts due, or the paperprocesses? Either in the shortterm, or in a longer timescale.

Quality

30 Quality assurance is a way ofpreventing mistakes or defects inmanufactured products andavoiding problems when deliveringsolutions or services to customers.Does the prospect of remaining inthe EU and the distraction ofcompliance with ever-increasingbyzantine rules and regulationsmean that customer focus and theability of SMEs to be agile,responsive and flexible, willcontinue to be eroded?

British citizens travelling to otherEuropean countries have the right toaccess free or cheaper public healthcarethrough the European Health InsuranceCard (EHIC), covered by the NHS.

The EHIC is recognised across EUmember states, and outside of the EUwe could lose access to this vital scheme.

Brits living abroad can also accessnational health systems on equal termsas home nationals.

Outside of the EU, EU countries wouldbe free to discriminate against UKcitizens accessing their health system.

Being in the EU guarantees you thatyour years spent working andcontributing in another EU country willcount towards a combined pensionentitlement, and that when you work inanother EU country you can be insuredagainst risks such as unemployment, orthe extra costs of raising a family thoughthat country’s social security system.These arrangements would be at risk ifwe leave the EU.

Independent experts at the LSE havepointed out that if Britain left the EU, itwould lose access to the coordinatedVAT collection of the EU. So a 20% VATwould need to be paid at the UK border,and the importer would no longer havethe convenience of combining this withdomestic VAT payments.

Leaving the EU will not reduce red tapefor small businesses. The single marketis Britain’s home market, and ourbusinesses need unfettered access to its500 million consumers. As part of thisaccess, the UK accepts a set of rules andregulations that provide a level playingfield for businesses across Europe.

These regulations are necessary for thefunctioning of the single market, and theEU Commission is currently takingaction to streamline the rules.

those in the euro. The JunckerCommission is also planning an EU-widecorporation tax (European Commission,2015). http://bit.ly/1WBXrU5

As the Government acknowledges: ‘Youcan claim State Pension abroad ifyou’ve paid enough UK NationalInsurance contributions to qualify’ (HMGovernment, 21 January 2016).http://bit.ly/19N4o7L

This would be for UK Parliaments todetermine in future. After we VoteLeave, it would not be necessary tointroduce change in this area, and thereis no reason to fear uncertainty in theshort term.

EU membership obliges UK businesses,regardless of whether they export tothe EU, to follow whatever absurd rulesthat add to cost in the name ofconsumer rights. If we take backcontrol, the Government can passconsumer protection legislation that isitself fit for purpose, and stop bizarre orwasteful EU rules while also ensuringUK consumers have access to a greaterdiversity of international productsavailable to buy at cheaper prices.


Sports

31 Currently, footballers from acrossEurope can live and work in theUK without procuring a visa. IfBritain were to leave the EU,would it be more difficult forforeign players to sign for ourclubs, and could that affect the£3.4 billion the Premier Leaguealone adds to the UK economy?

If Britain wants to trade with the singlemarket on the terms we currently have,we need to accept the rules.

It is vital for us to ensure that a strongBritish voice continues to be heard in theEU’s institutions to advance the interestof small businesses. The UKGovernment is very influential in the EU,and its positions on red tape andbusiness regulation are informed by theviews of small businesses. There arealso small business membershiporganisations at EU-level, where smallbusinesses can engage to ensure theirvoice is heard by EU policymakers.

If we left the EU, Britain would no longerenjoy this vital influence, but we wouldstill have to comply with EU regulationsin order to trade with the single market.We would be rule takers, not rule-makers.

The EU benefits sports fans in Britain byeliminating barriers and making itcheaper to travel to sporting eventsacross Europe. Sports clubs in the UKare able to recruit the best talent fromacross Europe with no barriers thanks tofree movement rules.

It has recently been shown that PremierLeague clubs could struggle to maintaincertain EU players if we left the EU, arisk that was underlined by ArseneWenger. This is likely to impact thecompetitiveness of UK clubs.

The EU’s Erasmus programme providesfunding for projects to get young peopleinto sport, and supports the inclusion ofminorities and people with disabilitiesthrough participation in sport. Access toErasmus could end if we left the EU.

Britain can draw on best practice fromacross Europe through cooperation inEU sports bodies. EU sports bodiesexist to tackle match-fixing, promotetransparency and fair regulation, takeaction against doping and develop rulesfor the transfer of sports players thatpreserve integrity and preventexploitation.

Where rules help protect UKconsumers, or give UK consumersrights that are reasonably useful andrealistically providable by producersand retailers, we expect theGovernment to retain those rules. Wecould either choose not to repealthem after we leave, or legislate forthem in a new UK Act. On the otherhand, bizarre, absurd, wasteful andunreasonable rules could be repealedby the UK Government. If theGovernment tries to restrict consumerrights in a way that consumersdisagree with, or fail to act where adangerous product emerges, we couldvote them out of office.

The Premier League has more foreignplayers than competing leagues. EUfree movement rules have damagedBritish football. As the FA hasacknowledged, the recent restrictionsthat have been introduced on skilledimmigration from non-EU countriesare the direct consequence of the EU'sfreedom of movement rules (FA, May2014, link). http://bit.ly/1fYNXhMAfter we Vote Leave, it would beeasier for foreign players to sign forour clubs.

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