Brexit: Price rises warning after chancellor vows EU rules divergence

[Zippyjuan]

https://www.bbc.com/news/uk-politics-51161808

Businesses have warned that food prices may rise and jobs may be affected after the chancellor vowed to end alignment with EU rules after Brexit.

Sajid Javid told the Financial Times the UK would not be a "ruletaker" after Brexit, urging businesses to "adjust".

The Food and Drink Federation said the proposals were likely to cause food prices to rise at the end of this year.

The Confederation of British Industry said for many firms, keeping existing EU rules would support jobs.

The automotive, food and drink and pharmaceutical industries all warned the government last year that moving away from key EU rules would be damaging.

'Death knell'
In an interview with Financial Times, the chancellor said the Treasury would not support manufacturers that favour staying aligned with EU rules, as companies had known since 2016 that the UK was going to leave the EU.

"Admittedly they didn't know the exact terms," he said.

The UK's 11-month transition period begins after it leaves the EU on 31 January.

Mr Javid declined to specify which EU rules he wanted to drop, but said some businesses would benefit from Brexit, while others would not.

He added: "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."

Tim Rycroft, chief operating officer of the Food and Drink Federation, told BBC Radio 4's Today programme that it sounded like the "death knell" for frictionless trade with the EU.

Acknowledging that some industries might benefit from Brexit, he said: "We also have to make sure the government clearly understands what the consequences will be for industries like ours if they go ahead and change our trading terms."

The chancellor also said he wanted to double the UK's annual economic growth to between 2.7 and 2.8%.

The outgoing governor of the Bank of England, Mark Carney, told the Financial Times last week he thought the UK's trend growth rate was much lower, at between 1 and 1.5%.

Mr Javid said the extra growth would come from spending on skills and infrastructure in the Midlands and the north of England - even if they did not offer as much "bang for the buck" as projects in other parts of the country.

He also pledged to rewrite Treasury investment rules, which have tended to favour government investment in places with high economic growth and high productivity.

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[Chester Copperpot]

https://www.bbc.com/news/uk-politics-51161808





More at link.

whats your view on Brexit Zip? Good for Britain or bad?

[Warlord]

Scarmongering again. Nothing will change.

[Zippyjuan]

whats your view on Brexit Zip? Good for Britain or bad?

At this point, bad. The EU isn't going to give them many breaks on any post- Brexit trade deals either to discourage others from considering leaving. No deal means automatic WTO tariffs on goods both into and out of the UK- where there currently are none. That will make things more expensive- for UK consumers and businesses who buy any imports from the EU and companies who export to the EU will be at a disadvantage too since their goods will cost more to EU customers. That will mean higher prices and fewer jobs in Britain.

[fedupinmo]

So you agree with heavy-handed actions to enforce globalism...

[angelatc]

No deal means automatic WTO tariffs on goods both into and out of the UK-

Wow. That's some scary NWO crap right there.

But here we are, and there they are. Nobody wants freedom, not even the leaders of the nations that signed up for this nonsense.