Business leaders in the United Kingdom have made clear their opposition to revisiting the Brexit referendum or rejoining the European Union’s customs union and single market, instead urging the government to focus on maximizing the benefits of the ongoing EU-UK trade "reset." This position was articulated by Rain Newton-Smith, director-general of the Confederation of British Industry (CBI), the country’s largest business lobby group.

Speaking amid political shifts following Sir Keir Starmer’s announcement that he will step down as prime minister, Newton-Smith emphasized that, despite acknowledging the economic challenges Brexit has brought, businesses do not want the referendum debate reopened. “The evidence is compelling and indisputable that Brexit has created costs for business,” she said, but added that the business community has largely moved on and does not support a return to the customs union. While some politicians on the left—including Labour leadership contender Andy Burnham, Liberal Democrat leader Ed Davey, and Green Party figures—have advocated for deeper alignment or full reintegration with the EU, the CBI’s stance reflects a cautious pragmatism shaped by current trade realities.

Newton-Smith noted that UK businesses have adapted to post-Brexit conditions by securing new trade agreements with countries such as India and Gulf states, contributing to a more diversified trade portfolio. However, she raised concerns about the impact of emerging EU policies like the Industrial Accelerator Act, which could further exclude UK firms from European supply chains, procurement opportunities, and investment programs. “There is a real risk of UK firms being further left behind,” she said.

The CBI advocates for practical measures to facilitate trade with the EU through the reset process, seeking simplified customs procedures, mutual recognition agreements, and closer regulatory alignment where it clearly benefits the UK economy. Newton-Smith cautioned that alignment with EU regulations “is not a silver bullet” and should only be pursued where the economic gains outweigh the trade-offs.

Specific trade frictions highlighted by the CBI include increased costs and delays stemming from customs and veterinary checks, longer transit times for goods between Northern Ireland and Great Britain, and duplication of pharmaceutical testing requirements for medicines entering the EU market, all of which have raised operational challenges and expenses for companies.

This perspective is echoed by others in the business community, including Lord Price, founder of WorkL and former trade minister, who urged the next prime minister to accelerate negotiations with Brussels to ease export difficulties. Supporting the call for a stable and prosperous UK-EU trading relationship, recent research from the Institute of Directors found that a growing proportion of British business leaders want the EU to be the government’s top trading priority and generally favor closer regulatory alignment.

The UK government maintains red lines that rule out rejoining the customs union, restoring free movement of people, or reverting fully to the EU single market, focusing instead on regulatory cooperation and trade facilitation under the reset framework. Officials have emphasized ongoing engagement with EU counterparts to protect vital supply chains and avoid disruption.

With the upcoming appointment of a new prime minister—widely expected to be Andy Burnham—business groups stress the need to prioritize pragmatic trade solutions that strengthen competitiveness while avoiding politically divisive debates over the UK’s post-Brexit relationship with the EU.