Chancellor admits some businesses may not benefit from Brexit but tells FT economy will benefit in long term
In what is being seen as an opening salvo in the next stage of negotiations, he said the Treasury would not lend support to manufacturers that favor EU rules as the sector has had three years to prepare for Britain’s transition.
Inan 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 (that we are leaving the EU. ”
His remarks will be seen as confirmation of a strategic departure from Theresa May’s deal in which she envisaged close alignment with the EU, in an effort to reduce friction at the border for traders.
But they will alarm business leaders in key sectors including car manufacturing and agriculture who fear the price of non alignment will be more complex trade barriers to those who export and import with the rest of the EU.
Last week the European commission president, Ursula von der Leyen,warned that the price of non-alignment would be friction in trade (**********************************.
“The more divergence there is, the more distant the partnership has to be,” she said.
Michel Barnier, the EU’s chief negotiator has also warned that the UK will not get a tariff-free, quota-free trade deal with the EU unless it accepts level-playing field rules on issues such as the environment .
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.
“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,” he said.
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.
Negotiations on the future relationship are expected to begin formally after 28 February when the EU has formally agreed its negotiating goals.
It is not clear whether the UK will publish detailed negotiating objectives, which is the convention in trade talks.
Javid was upbeat about the economy, saying he wanted to boost growth rates to between 2.7% and 2.8% a year – the average for years after the second world war.
Last week, Mark Carney, the Bank of England governor, told the FT he thought Britain’s trend growth rate was much lower at between 1% and 1.5%.