As the UK moves forward post-Brexit, establishing a clear regulatory framework that provides predictability and stability for businesses and investors is essential.
The UK Government should adopt a general policy of regulatory alignment with EU standards and regulations unless it is not in the UK's interests to do so.
This will enable businesses and investors both domestically and internationally to have confidence in the UK's regulatory foundations and will foster stronger relationships with trading partners, both now and in the future.
Outside of the Customs Union and Single Market, the UK can use its regulatory autonomy to address any future or new EU regulations on a case-by-case basis, enabling us to diverge from the EU approach where it is beneficial for our businesses and sectors, after consulting with affected stakeholders. By adopting this approach, the UK Government can ensure that regulatory coherence is maintained with the EU, thereby facilitating constructive engagement with the EU and other countries seeking to negotiate trade deals with the UK. Many non-EU countries already follow EU regulations.
A policy of regulatory alignment will provide a starting point for negotiations, while still allowing the UK to maintain its own regulatory autonomy. By taking this approach, the UK Government can reassure businesses and investors, both domestically and internationally, that the UK is committed to maintaining strong relationships with its trading partners, while still protecting the interests of UK businesses and sectors.