London Daily

Focus on the big picture.
Friday, Aug 21, 2026

Boris Johnson admits Brexit deal falls short for financial services

Boris Johnson admits Brexit deal falls short for financial services

Boris Johnson has conceded that the Brexit trade deal “perhaps does not go as far as we would like” over access to EU markets for financial services, while insisting he had achieved an accord his critics said would be impossible.

In an interview with the Sunday Telegraph, the prime minister said he had defied accusations of “cake-ism” – seeking the impossible – in getting a trade deal that allowed divergence from EU standards.

It had been, Johnson said, billed as out of the question “that you could do free trade with the EU without being drawn into their regulatory or legislative orbit”.

While service industries, the bulk of UK exports to the EU, could face potential regulatory or other non-tariff barriers, Johnson said there had been “access for solicitors, barristers” and a “good deal for digital”.

But on financial services, he said the deal “perhaps does not go as far as we would like”.

There are measures in the agreement for the possible imposition of tariffs if the UK diverges notably from existing standards. Johnson said this should not be viewed by Brexit-minded Conservative MPs as too restrictive.

“All that’s really saying is the UK won’t immediately send children up chimneys or pour raw sewage all over its beaches,” he said. “We’re not going to regress, and you’d expect that.”

Saying it was “unlikely” the UK would impose its own tariffs, Johnson added that any imposed by the EU “would have to be proportionate and approved by the arbitrator”, and if that happened regularly, the UK would revert to World Trade Organization trading terms.

However, Johnson told the paper, the UK could and would set its own path in some areas, mentioning as one idea the notion of so-called free ports, low-tax trade zones which advocates say boost economic growth, but which have been accused of helping tax evasion. Free ports exist within the EU, although with some restrictions.

The prime minister said more plans would emerge now the trade deal was finalised: “A great government effort has gone into compiling these and we haven’t necessarily wanted to talk about them much during this period because that perhaps would not have been fruitful.”

He added: “We want to see what we can take forward. We don’t want to diverge for the sake of diverging. But we’re going to want to do things differently where that’s useful for the British people.”

MPs and peers will gather on 30 December to scrutinise and vote on the deal, before the 1 January expiry of the current Brexit transition period.

While the fact Labour has said it will vote for the deal guarantees it will pass easily, Johnson could still face anger from the strongly pro-Brexit wing of his party, who are currently examining the details of the agreement.

In the interview, Johnson sought to portray the deal as the ultimate conclusion of Margaret Thatcher’s 1988 speech in Bruges, in which she railed against the idea of a “European superstate”, calling Thatcher’s address “prophetic”.

“It’s the end of a long and fractious period, in which we kept trying to pretend to ourselves that we could go along with all sorts of things we didn’t really want to do for the sake of keeping up with the great project of European Union,” he said of the trade deal.

“I think this gives us a basis for a new friendship and partnership that should attract people who love Europe and want to have a great relationship with it, who want to feel close to it.

“But it should also be something that is welcome to people who see the advantages of economic and political independence. I think the country as a whole has got itself into a new and more stable footing. It’s a better relationship and a healthier relationship.”

Newsletter

Related Articles

0:00
0:00
Close
Bitcoin Surges Toward $80,000 as Short Squeeze and ETF Inflows Ignite Crypto Rally
Twenty-Nine US States Take Meta to Trial Over Alleged Child Addiction on Instagram and Facebook
Former Scottish National Party Executive Peter Murrell Jailed for Five Years Over £400,000 Embezzlement
Moderna and Merck's Personalized Cancer Vaccine Succeeds in Historic Late-Stage Melanoma Trial
Prince Harry and Meghan to Move Back to Britain With Their Children
England and Wales Have Fewer Than 1,800 Prison Places Left for Men
Royal Navy to Accelerate DragonFire Laser Deployment Against Growing Drone Threat
Northern Ireland Approves Five Hundred Million Pound Belfast Harbour Expansion
Great British Railways Takes Full Control of Avanti West Coast as Rail Nationalisation Reaches Final Stage
UK AI Safety Institute Calls for Mandatory Security Audits of Advanced AI Models
Scotland Secures Three Billion Pounds for Floating Offshore Wind Hub in Aberdeen
Government Overrides Local Councils to Approve Green Belt Housing Across Southern England
UK and EU Move Toward Mutual Recognition of Food Standards to Ease Cross-Channel Trade
Government Plans Multibillion-Pound Private Healthcare Expansion to Cut NHS Surgical Backlogs
Bank of England Signals Faster Rate Cuts as Inflation Falls Below the Two Percent Target
Suspected People Smuggler Arrested After Investigation Identified Him
Children's Doctors Warn That Vaping Can Lead Young People to Smoking
Hundreds of Thousands of Students Receive GCSE and Vocational Results Across England, Wales and Northern Ireland
Here Is What Can Never Happen in Your Country: Taiwan Is Giving Money to All Its People Because It Collected Too Much Tax
UK Inflation Rises to 2.9% as Energy Bills Jump
UK Issues New Conduct Guide for Asylum Seekers on Consent and Respect
Moderna Shares Surge After Positive Personalized Skin Cancer Trial Results
UK Markets Watch US National Debt Surpass Forty Trillion Dollars
UK Broadcasters Urge Government to Invest in Digital Participation and Broadband
CVC Capital Partners and Standard Life Launch Two Billion Pound Pension Risk Transfer Venture
UK Private Sector Productivity Growth Accelerates in Second Quarter
UK Foreign Secretary Ed Miliband Condemns Israeli E1 Settlement Tender
UK Watchdog Investigates Trainline, Virgin Atlantic and RED Driving School Over Hidden Fees
Prince Harry and Meghan Markle Plan Move to Private Home Outside London
UK Retail Sentiment Improves as Summer Spending Boosts Consumer Confidence
UK Aid Cuts Draw Warnings From Charities Over Humanitarian Consequences
UK Financial Conduct Authority Issues Guidance for Motor Finance Redress Scheme
UK Met Office Launches Aviation Programme to Reduce Climate Impact of Persistent Contrails
Former UK Civil Service Chief Received Record 500,000 Pound Severance Payment
West Midlands to Bring Bus Network Under Public Franchising Model
UK Government Drops Plan to Relax Affordable Housing Requirements After Backlash
UK Reaffirms Military Support for Ukraine Despite Russian Hybrid Warfare Threats
UK Technology Sector Expands Nearly 8 Percent as Digital Industry Outpaces Wider Economy
UK Drought Threatens Harvests Across England and Wales as Food Inflation Risks Persist
UK Government Pledges 442 Million Pounds to End Rough Sleeping by Christmas
UK Government Signals Willingness to Reconsider Digital Services Tax Amid US Tariff Threats
UK Inflation Rises to 2.9 Percent as Energy Costs Threaten Economic Recovery
NHS Hospitals Cancel Surgeries as Extreme Heat Pushes Ward Temperatures Above 40 Degrees Celsius
UK Heatwave Forces Emergency Measures as Wildfire Risk, Hospital Disruption and Drought Intensify
A Sleepless Night on Wall Street: Nasdaq to Begin Nearly Round-the-Clock Trading
"The First in the World": 69-Year-Old Protested Artificial Intelligence—and Went to Jail
Ukraine's Ousted Defence Minister Calls for Wartime Presidential Election
UK Marks Ten Years of Night Tube as London Weekend Usage Exceeds Eighty-One Thousand Journeys a Night
Met Office Issues Thunderstorm Warnings Across Northern Ireland Over Flash-Flood Risk
Frasers Group Raises Stake in Hugo Boss to Nearly Forty-Eight Percent
×