JCB quits top business group in protest at its hardline stance against Brexit

  • Construction firm announces it terminated its membership of pro-Brussels CBI group over the summer
  • Billionaire chair Lord Bamford furious at CBI'sapocalyptic Brexit warnings 
  • Earlier CBI boss Carolyn Fairbairn voiced alarm about 'hard Brexit' stance
  • Said insisting on dramatic immigration cut could 'close door' on economy
  • But Downing Street hit back saying the UK will remain an 'open nation'
  • Senior Tories believed to be split over relationship with the single market

One of Britain's largest manufacturers has quit the CBI in protest at its hardline stance against Brexit. 

In a devastating intervention, construction firm JCB announced tonight that it had terminated its membership of the pro-Brussels business group over the summer.  

Its billionaire chairman Lord Bamford is believed to have pulled out in fury at the CBI’s apocalyptic warnings that leaving the EU would cause significant damage to the British economy. 

It came hours after the CBI director general Carolyn Fairbairn voiced alarm at the direction of government policies following confusion over attempts to get companies to reveal their proportion of foreign workers. 

JCB's billionaire chairman Lord Bamford (pictured with David Cameron) is believed to have pulled out in fury at the CBI¿s apocalyptic warnings that leaving the EU would cause significant damage to the British economy

JCB's billionaire chairman Lord Bamford (pictured with David Cameron) is believed to have pulled out in fury at the CBI’s apocalyptic warnings that leaving the EU would cause significant damage to the British economy

She and other business leaders warned that Theresa May's shift towards a 'hard Brexit' risks closing off the economy.

And they warned that the Prime Minister's insistence on a dramatic cut in immigration could mean 'closing the door' on the UK's history as an open trading nation.

But in a notable retort, Downing Street dismissed the warnings and insisted the UK will be 'broadening our approach' after leaving the EU, adding: 'Britain is an open nation'.

Theresa May has been meeting Danish counterpart Lars Rasmussen today as she prepares for Brexit negotiations

Theresa May has been meeting Danish counterpart Lars Rasmussen today as she prepares for Brexit negotiations

Ministers have been scrambling to unwind Home Secretary Amber Rudd's plan to 'name and shame' companies with migrant workers over the weekend following a fierce backlash. 

Education Secretary Justine Greening sought to play down the proposals yesterday, saying: 'This is not data that will be published. There will be absolutely no naming and shaming.'

Downing Street today refused to rule out forcing companies to supply the information, stressing that the policy was out for consultation.

'It is an area that is being looked at,' a spokesman for the PM said. 

And the spokesman roundly rejected the criticism from the CBI.

'Britain is an open nation. As we go through the Brexit process a large part of that is going to be broadening our approach with the rest of the world,' he said.

CBI chief Carolyn Fairbairn has warned jobs and communities will suffer if the government insists on taking a hard line

CBI chief Carolyn Fairbairn has warned jobs and communities will suffer if the government insists on taking a hard line

Ms Fairbairn told The Times that businesses were appalled at the idea, stating: 'They regard it as an indication that it is somehow a shameful thing to be attracting the best talent from around the world, rather than a source of pride.'

The CBI chief warned that jobs and communities would suffer if ministers allowed a post-referendum divide between government and enterprise to form.

Education Secretary Justine Greening (pictured on ITV's Peston on Sunday) has insisted any tensions in the Cabinet will not split the Tories

Education Secretary Justine Greening (pictured on ITV's Peston on Sunday) has insisted any tensions in the Cabinet will not split the Tories

'What we have heard over the last few days, if you add up the messages in total, are signs that the door is being closed, to an extent, on the open economy, that has helped fuel investment,' she said.

David Cameron's pro-Brexit former policy guru Steve Hilton insisted the idea was worse than Donald Trump's plan to ban some Muslims from America if he became president.

Meanwhile, the Prime Minister is continuing her grueling tour of European capitals as she calls for a fair 'divorce deal' from Brussels.

Mrs May is visiting Denmark and the Netherlands in the latest leg of her tour of EU members in a bid to put Britain's case ahead of the Government triggering formal withdrawal negotiations next spring.

The negotiations are set to prove extremely difficult, as the EU insists the UK cannot expect full access to the single market without accepting free movement of workers.

With sterling taking a major plunge on international money markets, pressure is growing on Mrs May to clarify what kind of post-withdrawal deal she is looking for.

Defence Secretary Sir Michael Fallon said yesterday that Britain is going for 'full Brexit' outside the European Union, but still wants to maintain good trade relations with the bloc.

Theresa May signalled a tough approach to Brexit during the Conservative Party conference last week

Theresa May signalled a tough approach to Brexit during the Conservative Party conference last week

Sir Michael also called for unity among Cabinet colleagues amid reports of deepening rifts among top Tories over the issue, with Sir Michael saying 'we are all Brexiteers now'.

'We're going to be outside the European Union but we still, because it's over 40% of our trade, we still want to maximise our trade with it,' he told the BBC.

Sir Michael said the Government's objectives in Brexit negotiations were to maximise free trade on goods and services, while regaining control of British borders.

Reports have suggested Chancellor Philip Hammond is at odds with 'hard Brexiteers' such as David Davis (right), the Brexit Secretary, and Liam Fox, the International Trade Secretary (left)

Reports have suggested Chancellor Philip Hammond is at odds with 'hard Brexiteers' such as David Davis (right), the Brexit Secretary, and Liam Fox, the International Trade Secretary (left)

Britain is going for 'full Brexit' when it leaves the EU, Defence Secretary Sir Michael Fallon told the Andrew Marr Show yesterday

Britain is going for 'full Brexit' when it leaves the EU, Defence Secretary Sir Michael Fallon told the Andrew Marr Show yesterday