Sajid Javid warns business there will be ‘no alignment’ with the EU after Brexit

Posted On: 
18th January 2020

Sajid Javid has warned British businesses there will be no alignment” with the EU after Brexit, adding that firms must “adjust” to new regulations. 

Mr Javid admitted some businesses will not benefit from Brexit

The chancellor said not all businesses would benefit from Brexit – but failed to make clear what EU rules he wanted to ditch. 

Speaking to the Financial Times, Mr Javid said: "There will not be alignment, we will not be a rule taker, 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.

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“There will be an impact on businesses one way or the other, some will benefit, some won’t.” 

He said he wanted to double the UK’s annual economic growth to between 2.7 and 2.8 per cent. 

Asked how a lack of regulatory alignment might impact British industry, the chancellor said: “Japan sells cars to the EU but they don’t follow EU rules. 

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

“Admittedly, they didn’t know the exact terms.” 

He added: “Once we’ve got this agreement in place with out European friends, we will continue to be one of the most successful economies on Earth.” 

Britain and the EU will have until the end of 2020 – the "transition period" – to decide the nature of their future relationship, following the former's departure on January 31. 

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