From: RegTech Analyst
The UK’s chancellor of the Exchequer has admitted that some firms will suffer as he ruled out alignment with EU legislation.
Banks, financial firms and other British businesses have campaigned to ensure the UK stay as close as possible with European legislation in order for companies to keep trading with the continent.
However, Sajid Javid has now shot down the notion that the Treasury would support any move towards aligning with EU rules.
“There will not be alignment, 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 chancellor told the Financial Times, adding that businesses had already had three years to prepare for Brexit.
He also said that financial services should ideally be able to trade with the EU on the basis of “outcome-based” equivalence of rules. However, the it is unclear where Brussels stands on that point.
The sentiment echoed that of the prime minister as Boris Johnson, who has previously ruled out any equivalence with the bloc’s laws.
EU officials had shot back saying that if the nation fails to meet their demands, then the country could end up losing the passporting rights enjoyed by British businesses.
Javid recognised that some businesses will suffer as a result of his stance. “There will be an impact on business one way or the other, some will benefit, some won’t,” he said.
The chancellor added that he was bullish about Britain’s prospect to “continue to be one of the most successful economies on Earth” once the UK had signed a trade agreement with the EU.
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