CBI warns of cost rises if UK strays from EU regulations
In a new report, the Confederation of British Industry (CBI) has warned the government that costs could rise for businesses if the UK were to diverge from EU regulations.
The report states that Brexit ‘presents opportunities for rule changes’ in specific sectors, which could ultimately benefit the UK economy.
However, the CBI also warned that the government should only diverge from EU rules if it can be proven that the benefits of doing so will outweigh the costs.
It said that, for certain industries, existing EU rules are ‘fundamental’ to the trade and transport of goods, and as such, remaining aligned with the EU would be ‘essential’.
Commenting on the issue, Carolyn Fairbairn, Director General of the CBI, said: ‘It’s vitally important that negotiators understand the complexity of rules and the effects that even the smallest of changes can have.
‘Deviation from rules in one sector will have a knock-on effect on businesses in others, and divergence from rules in one part of a production process will have consequences for market access throughout entire supply chains.’