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Cameron Shifts Stance On Business And Brexit

Cameron Shifts Stance On Business And Brexit

David Cameron has told his closest business advisers they are free to speak publicly about the benefits of European Union (EU) membership as part of what insiders described as an unexpected change of tone from Downing Street.

Sky News has learnt that the Prime Minister agreed at a meeting of his Business Advisory Group late last month that bosses should not feel restricted from being vocal about how EU membership adds value to their companies.

The discussion followed media reports in early September that executives had been‎ ordered to "shut up until a [reform] deal is done with the EU".

Mr Cameron's advisory group includes prominent company bosses such as Carolyn McCall, the easyJet chief executive; John Nelson, the Lloyd's of London chairman; Nigel Wilson, who heads Legal & General; and Jayne-Anne Gadhia, chief executive of Virgin Money.

Many business chiefs had ‎been bemused by the apparent instruction to remain silent on Brexit until the scope of a reform deal was agreed, arguing that it was not for Downing Street to dictate their public stance on an issue which could have a direct impact on the value of their companies.

A person familiar with the BAG discussion said it was "unexpected" for Mr Cameron to be "so permissive" about businesses speaking out given the earlier reports.

Sir Mike Rake, who handed over the presidency of the‎ CBI, the employers' group, earlier this year, said before he stepped down that business should "turn up the volume" on the Brexit debate.

That exhortation drew a sharp rebuke from Sajid Javid, the Business Secretary, who said it would be counter-productive to Britain's ability to extract meaningful reforms in Brussels if it appeared that the UK wanted to remain in at all costs.

The news that Mr Cameron has relaxed his position on the merits of ‎business leaders speaking out about the UK's EU membership comes days before the formal launch of one of the groups which hopes to become the official campaign to remain inside the trading bloc.

‎A Downing Street spokesman confirmed that the issue was discussed at the recent meeting of the Business Advisory Group, but declined to comment on the content, saying that it was a private meeting.

On Tuesday, the Institute of Directors urged Mr Cameron to hold the in-out referendum‎ within a year or risk the poll becoming a confidence vote on the Conservative Government.

During a debate at the IoD's annual conference‎ in London, the former Labour minister and EU commissioner Lord Mandelson acknowledged that the EU had to "do less, and do it better" if the UK was to be convinced to remain a member.

None of the members of Mr Cameron's advisory group, who also include Xavier Rolet, chief executive of the London Stock Exchange Group, and the Santander chair Ana Botin, would comment.