The Chancellor warned manufacturing leaders that there will be no alignment with EU regulations once Britain’s exit from the European Union is made official. The Treasury would not lend support to manufacturers that favour EU rules as the sector has had three years to prepare for Britain’s transition. Mr Javid told the Financial Times: “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.”
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.
He said: “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.”
Many readers quickly shared their views on Mr Javid’s plans on the Express.co.uk Facebook page.
Ian Wyatt wrote: “Very well said. This is the main reason we put Boris in charge.”
Patti Wells agreed: “That’s what we voted for!”
Colin Blomeley added: “Keep talking like that and I’m feeling more positive than ever.”
Mick Doherty simply said: “Well done Sajid!”
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.
But the Food and Drink Federation (FDF) said that no regulatory alignment with the EU after Brexit could lead to price rises.
Its chief operating officer Tim Rycroft added: “Food and drink manufacturers will be deeply concerned by the Chancellor’s suggestion that there will not be regulatory alignment with the EU post-Brexit.
“This represents the death knell for frictionless trade.
“It will mean businesses will have to adjust to costly new checks, processes and procedures, that will act as a barrier to frictionless trade with the EU and may well result in price rises.”
The Confederation of British Industry (CBI) said alignment supports jobs and competitiveness for many firms.
Its director general Dame Carolyn Fairbairn said: “Business welcomes the Chancellor’s ambitious vision for the economy and recognises there are areas where the UK can benefit from its future right to diverge from EU regulation.
“However we urge Government not to treat this right as an obligation to diverge.
“For some firms, divergence brings value, but for many others, alignment supports jobs and competitiveness – particularly in some of the most deprived regions of the UK.”
The Society of Motor Manufacturers and Traders (SMMT) said its priority was to avoid “expensive tariffs and other behind-the-border barriers” between the UK and EU that limit market access.
Its chief executive Mike Hawes added: “Both sides want a thriving sector and we want to work with Government to help reach a mutually beneficial arrangement on regulation that safeguards UK manufacturing and consumer choice by allowing vehicles built in the UK to be sold in the EU and vice versa without additional requirements that would add billions to the cost of development.
“It is important, therefore, that we have early sight of the details of the Government’s ambitions so we can evaluate any impact on our competitiveness and the future of volume manufacturing in the UK.”
The Chancellor also hinted that there might be tax rises in the March Budget or autumn, telling the Financial Times that he was determined to take the “hard decisions you need to sometimes, especially at the start of a new government”.
But when asked specifically about taxation he said: “You’ll have to wait for the Budget.”