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Sajid Javid issues post-Brexit warning to business leaders as he insists there'll be 'no alignment' with EU on regulation

REUTERS
REUTERS

Sajid Javid has warned manufacturers that there will be "no alignment" with the EU after Brexit, insisting firms must "adjust" to new regulations.

The Chancellor said the Treasury would not lend support to manufacturers that favour EU rules because the sector has had three years to prepare for Britain’s transition.

In an interview with the Financial Times, he said: “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.

“We’re … talking about companies that have known since 2016 that we are leaving the EU.”

He then added: "Admittedly, they didn't know the exact terms."

There is concern among some UK business sectors about leaving the current trading partnership without a new deal to reduce border friction.

Mr Javid admitted that some businesses may not benefit from Brexit, but added that the UK economy would ultimately continue to thrive in the long-term.

"There will be an impact on business one way or the other, some will benefit, some won't," he told the paper.

He added: “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."

Last year, the automotive, food and drink and pharmaceutical sectors warned the government that no longer aligning with key EU rules would be damaging.

Mr Javid declined to specify which EU rules he wanted to drop.

The government has not yet agreed a future trading relationship with the EU - it plans to do so in the 11-month transition period which begins after the UK leaves the bloc on January 31.

During the transition period the UK will continue to follow EU rules and contribute to its budget.

Mr Javid will have the opportunity to sell his vision for Britain’s economy post-Brexit when he travels to Davos next week for the World Economic Forum.