Lizzy Roberts examines the Government’s approach to Brexit negotiations, and sets out what businesses should do during this period of regulatory and relationship limbo.

The “Government by the people” rhetoric

Any card player knows the importance of keeping your cards close to your chest, and the British Government is no exception in the lead up to the UK-EU negotiations. These negotiations are, after all, going to turn into one very high-stakes game of poker. This understandable reluctance to set out any detail surrounding the terms the Government would accept during negotiations is sending the press into a frenzy – this week’s snapped hand-written note by a Conservative aide is just one example.

Critical business activity is determined by the UK’s relationship with the EU, and Government opacity about its priorities is leading to speculation and much uncertainty for business. What is clear at this stage of the process is that the Government feels the need to demonstrate that it has taken on-board Brexit voter rhetoric, and as such, if business wants to have its voice heard it will need to make its case to the people, as well as the politicians.

Revealing the UK’s priorities

Whilst opposition politicians may call for clarity on the UK’s negotiating plan, UK officials know that it would be foolish to reveal their hand when they are facing a well-practiced EU trade negotiations unit. Deloitte’s leaked assessment of the Brexit process has suggested that the UK has no Brexit plan and needs to mobilise 30,000 extra civil servants to deal with the momentous task of implementing the 500 Brexit projects associated with separation.

The EU Brexit negotiating team, headed up by Michel Barnier, has already set the precedent for awkward talks. In a recent meeting with Secretary of State for Exiting the EU, David Davis, Commissioner Barnier indicated that Article 50 negotiations would be conducted in three phases, and that the “final deal” regarding the UK’s future trade relationship with the EU would be the final segment. This is bad news for those seeking a nuanced and comprehensive trade deal, as completing the negotiations in even the full two-year negotiating timeline is considered an almost impossible task.

To overcome the looming prospect of an unfinished deal, Theresa May this week set out her plans to keep UK industry away from a post-Brexit “cliff-edge”, outlining her aims for a transitional phase of UK- EU membership. However, numerous MPs, who consider themselves to have a mandate for “hard Brexit” have criticised such measures and are working to make sure that the transitional period if implemented at all, is time limited.

What do we know?

With rumours circulating that Theresa May is on course for a sector-by-sector negotiation of single market and trade access, and with MPs from the Exiting the EU Select Committee suggesting it is inevitable that the UK leave the Single Market and Customs Union, it is important that industry understands what is at stake and can express its positions convincingly.

If the rumours are true, the Government is looking to prioritise sectors and industry winners (evidenced by the Nissan trade deal) in negotiations, cherry-picked for their impact on clusters of existing jobs and potential areas of growth. The implications of taking this strategy would be vast. The publication this week of a Centre for Economic and Business Research (CEBR) report into the importance of the main sectors of the UK economy shows that most, if not all, sectors are linked to the EU in one way or another. As such, any sector-by-sector approach would have to be extremely comprehensive or else entire swathes of the business community that are not covered in negotiations could suffer.

What can business do?

One of the mistakes of the “remain” camp during the referendum was the over-reliance on economic and business messages at the expense of making an emotional connection with voters. This is something that the Government is very aware of, which is why statements laced with phrases like “Brexit means Brexit” and “enacting the will of the people” are the only comments leaving Number 10. Fearful of going against a populist narrative propelled by Brexiteers, Theresa May is treading a difficult path between trying to reassure business and the markets while conveying that the majority who wanted change are being listened to.

This is something that needs to be reflected in businesses communication strategies. The line between public and corporate communications will need to blur, as messages are developed that target both political and more public audiences. While there may have been a time when it was enough to convince officials and policy makers of the need to develop a positive business environment, this is no longer the case. Politicians need to be convinced that the electorate see the value of the decisions made, and to do that businesses need to persuade the public too. This naturally presents challenges – overcoming long-standing scepticism surrounding the value that businesses create will not be an easy or overnight task.

Newington can help businesses develop their arguments in ways that resonate with both politicians and the public. Headed by Muniya Barua, ex-Director of Corporate Communications at the CBI, we recently opened our Corporate Affairs offer to complement our successful and established Public Affairs division.