THE lobbying power of big business “cartels” in Brussels is damaging to small business, an MEP has warned.

Eurosceptic MEP Daniel Hannan told small business owners the EU system was “oligarchic rather than competitive” and was not working in their interests.

But his arguments were rejected by Green MP Caroline Lucas, who said he was living in "cloud cuckoo land" if he was suggesting trading would be better outside the EU.

Daniel Hannan, a Conservative MEP and Kemp Town resident, said Sussex business' ability to trade around the world was being restricted by Brussels.

He said: “Again and again we see the power of corporate cartels in Brussels with a lack of democratic accountability. Deals are made by people who don’t need to worry about being open.

“Around the world decision making is being pushed outwards. But in the EU power is being consolidated in Brussels.”

According to a show of hands, the audience at the Brighton Chamber-organised Big Debate at the Brighthelm Centre on Friday were broadly supportive of the EU.

But they were warned by the South East MEP that non EU countries enjoyed a competitive advantage, as they only had to meet EU rules when selling in Europe, whereas Sussex companies had to abide by EU rules even when trading with a neighbour.

Arguing for greater business links with the wider world, Mr Hannan concluded: “I would urge us to have the confidence and courage to look beyond our doorsteps and see the bright future across the oceans.

“I think we may just manage running our own affairs in our own interests.”

In response, Ms Lucas accepted the EU could do more for small businesses and agreed the institution was not perfect.

But she argued it was preferable to remain within the EU in order to try and influence and reform it.

She said: “The insidious role of big business doesn’t just happen in parliament, it happens in Whitehall as well.

“Being in the EU doesn’t stop us trading with India and China. I would argue what it does is when entering a trading agreement we have a lot more leverage rather than lobbying as part of the UK alone.

“The idea that we would have a nicer more cuddly trade policy outside the EU is cloud cuckoo land.”

The Green MP added: “We used to be known as the dirty man of Europe. But it’s thanks to the EU that we have cleaner water, cleaner beaches and cleaner air.

“If we’re serious about addressing the environmental crisis, we will be able to do that much better if we’re working with the 28 other member states.”