The foreign minister warned manufacturers that “there will be no alignment” with the EU after Brexit and insists that companies must “conform” to the new regulations.
Speaking to the Financial Times, Sajid Javid admitted that not all companies would benefit from Brexit.
Last year, the automotive, food and beverage and pharmaceutical sectors warned the government that ceasing to align with key EU standards would be harmful.
Javid declined to specify which EU rules he wanted to eliminate.
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“There will be an impact on business in one way or another, some will benefit, others will not,” he told the newspaper.
He used Japan’s automotive industry as an example of a manufacturing sector that succeeded without following EU rules.
When asked how different regulations between the United Kingdom and the EU can affect industries such as the automotive and pharmaceutical companies, he said: “We are also talking about companies that have known since 2016 that we are leaving the EU.”
“It’s true that they didn’t know the exact terms.”
The government has not yet agreed on a future trade relationship with the EU; He plans to do so in the 11-month transition period that begins after the United Kingdom leaves the block on January 31.
During the transition period, the United Kingdom will follow EU rules and contribute to its budget.
‘Here is the cash, use it’
The chancellor also said he wanted to double the annual economic growth of the United Kingdom to between 2.7 and 2.8%.
However, the outgoing governor of the Bank of England, Mark Carney, told the Financial Times last week that he believed the UK trend growth rate was much lower, between 1 and 1.5%.
Javid said the additional growth would come from spending on skills and infrastructure in the Midlands and northern England, even if they didn’t offer as much “money for the money” as the projects in other parts of the country.
Historically, low interest rates, which allow the government to borrow money relatively cheaply, “were almost a sign to me from the market, on the part of investors, that cash is here, use it to do something productive.” said Javid.
He pledged to rewrite the Treasury investment rules, which have tended to favor government investment in places with high economic growth and high productivity.
Javid said the rules had helped “strengthen” inequality and insisted that the weakest parts of the country would have to resort to new money first.
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In November, the Bank of England said that a weaker world economy and its new assumptions about Brexit would reduce 1% of UK growth over the next three years compared to its previous August forecast.