UK-EU deal hailed as milestone but is ‘just the beginning', says industry

Yahoo

19-05-2025

The UK's new deal with the EU marks a 'turning point' that will boost UK businesses and help ease cost pressures for hospitality firms, industry groups have said.
The new deal was widely welcomed across business sectors for helping cut red tape and reducing checks on food exports, while also freeing up the movement of young people to help with staffing and hiring.
But trade unions and businesses also said it was 'just the beginning', with further details to be ironed out.
📣 Today's UK-EU Reset is a milestone for British business. 🇬🇧🇪🇺
Our tireless advocacy has led to real progress being made to ease trade frictions and boost growth. 🙏 Thank you PM @Keir_Starmer for listening and acting. Let's keep building together. 🤝🌱#WhereBusinessBelongs pic.twitter.com/ZkfAHeAyHZ
— BCC (@britishchambers) May 19, 2025
Economists said they were also doubtful that it would be a significant shot in the arm for the economy or the UK's public finances.
Shevaun Haviland, director general of the British Chambers of Commerce (BCC), said: 'Today's summit marks a turning point in UK/EU relations which puts our trade relationship at the forefront of our partnership going forward.
'For four years, businesses have fought hard to sustain sales to the EU in the face of a rising tide of costs and paperwork which has severely dented their competitiveness.
'A permanent deal to remove unnecessary checks on food and drink exports in both directions is a huge boost; it will cut costs, reduce waste and increase sales.'
She added: 'This summit also saw encouraging movement on other issues that have long been a thorn in the side of many firms.
'A commitment to focus on securing a youth mobility scheme and linking our emission trading schemes will make life simpler and less costly for many businesses.'
UKHospitality said the deal would 'help to further increase access to high-quality, affordable food and drink for business and consumers alike'.
Kate Nicholls, chief executive of UKHospitality, also cheered the plans to allow a youth experience scheme.
'We're pleased that there is a clear commitment to co-operate further on a youth experience scheme. I urge both parties to pursue a model with maximum flexibility."
Our CEO @UKHospKate has responded to the new UK-EU deal 👇 https://t.co/M9Pg3mYaKE
— UKHospitality (@UKHofficial) May 19, 2025
'Not only does it provide economic benefits, but it also provides new opportunities for critical cultural exchange, which ultimately delivers richer experiences for customers,' she said.
'I urge both parties to pursue a model with maximum flexibility, and mirroring existing schemes with Australia and New Zealand is a sensible approach.'
But the Institute of Directors (IoD) said while the reset of relations with the EU 'heralds a new era of collaboration', further work was needed.
Emma Rowland, trade policy adviser at IoD, said: 'We recognise that this is just the beginning.
'With elements not yet set in stone, there will be further effort required to ensure that what has been promised is delivered for the benefit of the UK economy, the business environment and wider British society.'
A closer UK-EU relationship is a no brainer amid global economic uncertainty.
The government must continue its ambitious approach, keep its options open and deliver a closer trading relationship that works for working people.
The Tory Brexit deal set workers and business back.…
— Trades Union Congress (@The_TUC) May 19, 2025
The Trades Union Congress (TUC) added: 'Governments on both sides of the channel must continue with an ambitious approach, including a shared commitment to strong employment rights and collective bargaining.'
James Smith, economist at ING, said the deal was a 'no game-changer' for the economy.
He said: 'Monday's European deal with Britain is a positive first step, but it won't massively boost the economy, nor help avoid tax rises in the autumn.
'Further regulatory alignment might do that and would help boost sterling.
'But existing UK and EU red lines make that a daunting task.'