There has been some suggestion that Sajid Javid said the UK would diverge from EU rules in his FT interview and then told business leaders in Davos we would remain aligned. That’s not correct. 1/
In both the interview and the speech he said there was no point in Brexit if the UK remains a “rule-taker”. He also said the UK would obviously be fully aligned on day one of Brexit. 2/
He added that there was no point in divergence for the sake of divergence. Brexit means the UK can stay aligned where we WANT to and not because we HAVE to. 3/
The UK can also diverge from EU rules where it is in our best interests to do so. This is all perfectly logical. We will likely remain aligned with most EU rules but diverge from some. 4/
It is not true that he said one thing to one audience and another thing to another audience. He's been consistent. Seems to me people are hearing half of what he was arguing each time. That said…… 5/
The prospect of any divergence will create uncertainty for some businesses. How will we diverge? When? Will the EU withdraw access if it deems the UK to have obtained/eaten cake? 6/
Plus, per previous post, if you are converging with a regulatory system, you know the end point. If you’re diverging, you don’t. This makes it harder for businesses to plan. Yes, the UK is fully aligned with the EU on day one. What happens on day two, three, etc. 7/
Finally, there has been a lot of annoyance at Davos about the “rule-taker” rhetoric. The Government often says it makes no sense to be be a rule-taker following Brexit. 8/
But it is also hoping to sign free trade agreements with lots of countries/blocs, which means pooling sovereignty, which means abiding by the rules of the FTA. 9/
Here ends the @pmdfoster-style thread ENDS/
