CBI's former president calls for second referendum

In the run up to the EU referendum in 2016, the Confederation of British Industry (CBI) declared that 80% of the 130,000 businesses it represents wanted Britain to remain in the European Union.

However, on Monday, at it’s annual conference, the organisation swung behind a draft Brexit agreement which will see us leave.

The vision for the future trading relationship, spelled out in the political declaration that was published on Wednesday, is aspirational and non-binding but that’s good enough for the CBI.

The Director General of the CBI, Carolyn Fairburn, claims it’s members are “unanimous”.

Carolyn Fairbairn said the CBI 'unanimously' backs Mrs May's draft Brexit deal. Credit: PA

She described Theresa May’s draft deal as “a compromise” but one that “takes no deal off the table” and at least “charts a potential path to a future frictionless trade deal”.

The CBI appears to have decided that Britain has run out of road; that the Prime Minister’s deal, while imperfect, avoids something worse and that it is too late for a People’s Vote.

"Let’s face it, the path [to a second referendum] is extremely murky, extremely unclear and the risk of tipping into no deal on the way is extremely high,” Ms Fairburn said.

Put another way, it’s the draft agreement or disaster.

There was plenty of goodwill towards the Prime Minister in the conference room on Monday morning.

Theresa May's CBI address was warmly received. Credit: PA

Business leaders warmly applauded her speech (which said nothing new) and greeted journalist’s questions with pantomime groans.

But the CBI's view isn’t universal.

Some businesses want an immediate, clean break with the EU, hard Brexit or not.

What is more, the CBI is at odds with one of its former presidents.

Sir Mike Rake, the former chairman of BT, describes the Withdrawal Agreement as “a positive step” but is backing calls for another referendum which he insists can be held safely.

“The question that should be on the paper is do you accept the Prime Minister’s deal or would you prefer to remain?” Sir Mike told ITV News.

“I don’t see why there would be the accidental risk of no-deal... Parliament would never vote for it.”