British Chamber of Commerce says Theresa May’s Brexit speech leaves questions unanswered

Business know "little more about the likely outcome of the Brexit negotiations than they did yesterday,” says BCC

May said that a final deal with EU leaders will be put to a vote in the House of Commons and the House of Lords (Getty)

The head of the British Chambers of Commerce has criticised Theresa May’s Brexit speech for failing to cast much new light on the Prime Minister’s stance on divorce proceedings and implications of an exit.

In a highly-anticipated speech on Tuesday, Ms May said that Britain would pull out of the single market when it leaves the European Union but also underscored her aim of ensuring the UK retains the “greatest possible access” to EU markets through a “comprehensive free trade agreement.”

“While businesses now have a clearer sense of the Prime Minister's top-line priorities, they will come away from her speech knowing little more about the likely outcome of the Brexit negotiations than they did yesterday,” Adam Marshall, director general of the business group, told the Press Association.

”The simple fact is that businesses all across the UK are carrying on. Directly affected companies are being pragmatic, and are preparing for a range of possible outcomes,“ he added.

In Tuesday’s speech at Lancaster House, Ms May also announced that the final deal she reaches with EU leaders will be put to a vote in both the House of Commons and the House of Lords, but she failed to elaborate what would happen if Parliament blocks her deal.

“Critical details on the governments intended future rules for migration, or ambitions for the length and nature of a transitional agreement for Brexit, were missing,” said Kallum Pickering, senior UK economist at Berenberg Bank. “Such details are crucial if we are to come to grasps with the longer term implications of Brexit.”

Last month, the BCC nudged up its forecast for economic growth in 2017 but trimmed its outlook for 2018 citing inflation pressures and ongoing uncertainty ahead of Brexit.

The BCC raised its expectations for gross domestic product growth to 1.1 per cent for this year, from a previous forecast of 1 per cent, after a stronger-than-expected economic performance following June's referendum vote.

But the BCC also cautioned that the current economic momentum would likely slow over the next two years. It cuts its UK GDP forecast for 2018 to 1.4 per cent from 1.8 per cent.

Additional reporting by agencies