London Daily

Focus on the big picture.
Friday, Aug 01, 2025

Government faces industry backlash on Brexit plans

Five industry bodies are concerned a new Brexit deal won't give them a level playing field in the EU.

The government is facing an unprecedented backlash from five key industries over Boris Johnson's plans for post-Brexit trading arrangements.

The aerospace, automotive, chemicals, food and drink and pharmaceutical sectors warn they could pose "serious risk to manufacturing competitiveness".

Collectively, the sectors employ 1.1 million people, contributing £98bn to the UK economy each year.

The group has sent a letter to the government highlighting its concerns.

The BBC has seen extracts of the letter, which was sent this week to Brexit Secretary Steve Barclay and the Cabinet Office minister, Michael Gove.

While such bodies have in the past made clear their concern at the prospect of a no-deal Brexit, this is the first time they have directly expressed to government their joint concern about a possible Brexit deal, after mostly supporting Theresa May's negotiated proposal.

The letter outlines their growing concern that Boris Johnson's Brexit negotiators have dropped existing commitments to maintain regulatory alignment in relevant sectors. The manufacturers' key concern is that they may no longer participate in specific EU regulatory institutions after any Brexit deal.

The group is asking for a "reassurance" that industry interests are still being prioritised by EU negotiators, and the letter warns of the "damage which would be done by the current approach on regulatory divergence".

It says: "Pan-European regulatory alignment has been a success in our industries, supporting continued creation and retention of highly skilled manufacturing jobs in the UK.

"It is important this regulatory alignment should continue after Brexit as a critical element of the UK's future relationship with the EU".

A government spokesperson said the UK was "seeking a best in class" free trade agreement drawing on existing EU deals.

"We have been clear that we are committed to maintaining high standards after we leave the EU," the spokesperson said.


Divergence


However the public and private noises emerging from London and Brussels is that the government has markedly changed its plan for a future relationship. They say the new proposal has low alignment with EU regulations, and does not have level playing field conditions attached on the environmental, social and labour standards, as proposed in Theresa May's deal.

After failing to get reassurances in recent weeks, particularly on the membership of key EU agencies, various sectors joined forces to warn the government directly.

The letter says that the serious risk to manufacturing "will result in huge new costs and disruption to UK firms".

"It would be disruptive to our complex international supply chains and has the potential to risk consumer and food safety, and confidence, access to overseas markets for UK exporters and vital future investment in innovation in this country."

This letter sees the Society of Motor Manufacturers and Traders, the Chemical Industries Association, the Food and Drink Federation, and the Association of the British Pharmaceutical Industry join an existing call from the aerospace industry, reported by the BBC earlier on Friday.

The aerospace industry body the ADS wrote to the government asking for "reassurance" that there would be "continued membership of the European Aviation Safety Agency (EASA) and alignment with EU chemicals regulations" which "are vital for our sector".

Repeated attempts to get clarity on this issue have not reassured the aerospace and other industries on this topic.

Other industries have asked for similar reassurances, only to be told in recent weeks that the government is seeking a "best in class" free trade agreement, where the UK would set its own regulatory standards.


Trade deals


The government has acknowledged that it wants to take the "level playing field" arrangements out of the political declaration that promised alignment on environmental, social, labour and some tax measures.

These were also seen as crucial to ongoing industrial regulatory co-operation, and preventing the introduction of many types of checks on trade.

But the government fears such measures agreed by Theresa May will restrict the ability of a post-Brexit government to strike meaningful trade deals with other countries such as the US.

A source close to the talks acknowledged to the BBC that among changes being negotiated in the political declaration, these references to EU agencies could get scrapped.

Even as most of the negotiating attention remains on Northern Ireland, the change in approach from the Johnson government suggest a significantly different, more diverged end-point for Brexit for England, Scotland and Wales, than envisaged under Theresa May.

A number of Labour MPs who say they want to support a deal have already expressed a desire for a deal with less scope for regulatory divergence.

Newsletter

Related Articles

0:00
0:00
Close
JD.com Launches €2.2 Billion Bid for German Electronics Retailer Ceconomy
Azerbaijan Proceeds with Plan to Legalise Casinos on Artificial Islands
Former Judge Charged After Drunk Driving Crash Kills Comedian in Brazil
Jeff Bezos hasn’t paid a dollar in taxes for decades. He makes billions and pays $0 in taxes, LEGALLY
China Increases Use of Exit Bans Amid Rising U.S. Tensions
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Procter & Gamble to Raise U.S. Prices to Offset One‑Billion‑Dollar Tariff Cost
House Republicans Move to Defund OECD Over Global Tax Dispute
Botswana Seeks Controlling Stake in De Beers as Anglo American Prepares Exit
Trump Administration Proposes Repeal of Obama‑Era Endangerment Finding, Dismantling Regulatory Basis for CO₂ Emissions Limits
France Opens Criminal Investigation into X Over Algorithm Manipulation Allegations
A family has been arrested in the UK for displaying the British flag
Mel Gibson refuses to work with Robert De Niro, saying, "Keep that woke clown away from me."
Trump Steamrolls EU in Landmark Trade Win: US–EU Trade Deal Imposes 15% Tariff on European Imports
ChatGPT CEO Sam Altman says people share personal info with ChatGPT but don’t know chats can be used as court evidence in legal cases.
The British propaganda channel BBC News lies again.
Deputy attorney general's second day of meeting with Ghislaine Maxwell has concluded
Controversial March in Switzerland Features Men Dressed in Nazi Uniforms
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
Thai Civilian Death Toll Rises to 12 in Cambodian Cross-Border Attacks
TSUNAMI: Trump Just Crossed the Rubicon—And There’s No Turning Back
Over 120 Criminal Cases Dismissed in Boston Amid Public Defender Shortage
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
The Podcaster Who Accidentally Revealed He Earns Over $10 Million a Year
Trump Announces $550 Billion Japanese Investment and New Trade Agreements with Indonesia and the Philippines
US Treasury Secretary Calls for Institutional Review of Federal Reserve Amid AI‑Driven Growth Expectations
UK Government Considers Dropping Demand for Apple Encryption Backdoor
Severe Flooding in South Korea Claims Lives Amid Ongoing Rescue Operations
Japanese Man Discovers Family Connection Through DNA Testing After Decades of Separation
Russia Signals Openness to Ukraine Peace Talks Amid Escalating Drone Warfare
Switzerland Implements Ban on Mammography Screening
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
Pogacar Extends Dominance with Stage Fifteen Triumph at Tour de France
CEO Resigns Amid Controversy Over Relationship with HR Executive
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
NVIDIA Achieves $4 Trillion Valuation Amid AI Demand
US Revokes Visas of Brazilian Corrupted Judges Amid Fake Bolsonaro Investigation
U.S. Congress Approves Rescissions Act Cutting Federal Funding for NPR and PBS
North Korea Restricts Foreign Tourist Access to New Seaside Resort
Brazil's Supreme Court Imposes Radical Restrictions on Former President Bolsonaro
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Judge Criticizes DOJ Over Secrecy in Dropping Charges Against Gang Leader
Apple Closes $16.5 Billion Tax Dispute With Ireland
Von der Leyen Faces Setback Over €2 Trillion EU Budget Proposal
UK and Germany Collaborate on Global Military Equipment Sales
Trump Plans Over 10% Tariffs on African and Caribbean Nations
Flying Taxi CEO Reclaims Billionaire Status After Stock Surge
Epstein Files Deepen Republican Party Divide
Zuckerberg Faces $8 Billion Privacy Lawsuit From Meta Shareholders
×