Chancellor Sajid Javid warned businesses that ‘there will be no alignment’ with EU rules after Brexit.
In an interview with the Financial Times, Javid said: “We will not be a ruletaker, we will not be in the single market and we will not be in the customs union – and we will do this by the end of the year.”
The EU wants the UK to stay in line with its regulations in exchange for a zero tariff, zero quota trade deal but the government wants to create rules of its own.
Javid didn’t say which regulations he wants to ditch, causing more planning issues for business owners. Though he told the Financial Times that companies “have known since 2016 that we are leaving the EU,” but admits that “they didn’t know the exact terms.”
The post-Brexit focus will be on ‘human capitalism’, pumping money into ‘skills, skills, skills’ and supporting infrastructure schemes in the midlands and the north. More importance will be placed on regional performance rather than national economic performance, with a view to boosting growth rates to between 2.7pc and 2.8pc per year.
Not all businesses will benefit
Moving away from existing regulations has attracted criticism from the motoring, aerospace and food and drink industries. These sectors say they would benefit from alignment with EU rules.
Javid said that “there will be an impact on business one way or the other, some will benefit, some won’t,” as he talked about creating much-needed certainty for businesses to start moving forwards.
“Once we’ve got this agreement in place with our European friends, we will continue to be one of the most successful economies on Earth,” the Chancellor added.
The UK has until the end of the year to negotiate a trade deal with the EU as part of the transition process. Until then we will continue following EU rules.