Javid: There will be NO alignment with the EU post Brexit

In a conversation with The Financial Times the Chancellor has warned manufacturers that “there will not be alignment” with the EU after Brexit and insists firms must “adjust” to new regulations.

Sajid Javid admitted not all businesses would benefit from leaving the EU but there was a huge potential for many.

The Food and Drink Federation said it sounded like the “death knell” for frictionless trade with the EU and was likely to cause food prices to rise.

Mr Javid declined to specify which EU rules he wanted to drop. The automotive, food and drink and pharmaceutical industries all warned the government last year that moving away from key EU rules would be damaging. This is not the first time however that Industry bodies have tried to belittle the possibilities of leaving the EU. The CBI were famously left looking foolish when their predictions of economic disaster proved to be wildly untrue.

Mr Javid told the paper: “There will be an impact on business one way or the other, some will benefit, some won’t.”

He said Japan’s car industry was an example of a manufacturing sector which found success without following EU rules.

Asked how differing regulations between the UK and EU may impact industries such as automotive and pharmaceuticals, he said: “We’re also talking about companies that have known since 2016 that we are leaving the EU. Admittedly, they didn’t know the exact terms.”