THE Tories are pushing ahead with their “race to the bottom" plans after the Chancellor confirmed there will be no alignment EU regulations after Brexit.
In an interview with the Financial Times, Sajid Javid told manufacturing leaders the Treasury would not lend support to manufacturers that favour EU rules as the sector has had three years to prepare for Britain's transition.
The SNP have warned that this spells “disaster” and will lead to a rolling back of several rights and protections.
READ MORE: Angus Robertson: Freedom is coming... it’s time Tories accept it
Shadow chancellor Alison Thewliss said: “The UK has not even left the EU and already the Tories are championing a devastating deal that will be a race to the bottom in standards – rolling back on vital protections and putting environmental standards, food protection, workers’ rights, and financial regulation under threat.
“This latest intervention from the Chancellor confirms that the Tory government is intent on pushing for a bottom of the barrel deal and going further in downgrading rights and protections that millions of people rely on.
"The impact of the Chancellor's comments would also spell disaster for the financial services sector – with huge implications for jobs in Scotland and the rest of the UK.
She added: “It’s unsurprising the Tories have repeatedly refused to publish an impact assessment on Johnson’s deal given his Chancellor has admitted that businesses will be left worse off as a result of the government's Brexit plans. That is a price that Scotland's businesses must not be forced to pay.
“It’s clear that the people of Scotland must have the choice of a better future as an independent country, rather than the broken, Brexit Britain being imposed upon us against our will.”
Javid confirmed in his interview that the UK will not be in the single market or customs union and will not be a “ruletaker”. This will be done by the end of the year.
"We're ... talking about companies that have known since 2016 that we are leaving the EU,” said Javid.
There is concern among some UK business sectors about leaving the current trading partnership without a new deal to reduce border friction.
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.
But the Food and Drink Federation (FDF) said that no regulatory alignment with the EU after Brexit could lead to price rises.
Its chief operating officer Tim Rycroft added: "Food and drink manufacturers will be deeply concerned by the Chancellor's suggestion that there will not be regulatory alignment with the EU post-Brexit.
"This represents the death knell for frictionless trade.
"It will mean businesses will have to adjust to costly new checks, processes and procedures, that will act as a barrier to frictionless trade with the EU and may well result in price rises."
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