The City cautiously approves of Chancellor’s post-Brexit regulations plan: Brexit News for Monday 20 January

The City cautiously approves of Chancellor’s post-Brexit regulations plan: Brexit News for Monday 20 January

The City cautiously approves of the Chancellor’s post-Brexit regulation plan…

The City of London Corporation has responded with cautious approval to chancellor Sajid Javid’s statement that post-Brexit financial services trade with the EU should be on the basis of “outcome-based” equivalence of rules. The chancellor has faced a backlash from car manufacturers and business bodies, however, after he told the Financial Times that the UK will diverge from EU regulations after Brexit and said firms will have to “adjust”. The UK and EU have until the end of the year to thrash out a free-trade agreement. The “political declaration” agreed in October said Britain should be able to access the EU’s financial markets using a “third-party equivalence” system, which would deem Britain’s regulations to be in alignment with the bloc’s. – City A.M.

…while Brussels is alarmed by the UK’s vow to diverge from EU rules…

The UK’s pledge to diverge from EU rules after Brexit has provoked alarm in Brussels, with officials warning of an economically damaging split at the end of this year. European diplomats and trade experts spent the weekend trying to make sense of comments made by Sajid Javid, UK chancellor, in an interview with the Financial Times on Friday. He urged businesses to “adjust” to a future where Britain no longer adhered to EU rules and regulations. “The main conclusion for the real economy is: prepare for the worst. Anything agreed will be a bonus,” one EU official said. A European diplomat warned that the kind of loose relationship outlined by Mr Javid would cause economic damage. – FT (£)

…following Sajid Javid’s vow that Britain will ditch EU rules after Brexit

Britain will ditch EU rules after Brexit and businesses must start getting ready now, Sajid Javid has vowed. The Chancellor told the Financial Times the UK would not be a “rule taker” and firms must now “adjust” to life outside the EU. He said the Treasury would not support manufacturers that favour staying tied to the bloc’s rules. “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,” he said. – The Sun

Boris Johnson should negotiate trade deals with individual US states, says Liam Fox…

Boris Johnson should negotiate trade deals with individual US states as a backstop while he tries to seal a post-Brexit free trade agreement with America, a former trade secretary will say on Monday. Liam Fox will point out that four US states – California, Texas, Florida and New York – would be members of the G20 if they were independent nations, and that many deals can be struck with states, rather than the US as a whole. While tariffs on goods can only be negotiated by Washington, deals on services, which account for the majority of Britain’s transatlantic trade, can be sealed on a state level, unlocking billions of pounds of business for the UK economy. – Telegraph (£)

…as the White House accuses Johnson of ‘dragging his feet’ over a US trade deal ahead of the summer deadline

The White House has accused Boris Johnson of “foot dragging” over negotiating a US trade deal as time runs short ahead of a summer deadline. Donald Trump and Boris Johnson want to strike a landmark new agreement by July to ensure it isn’t derailed by the US presidential election in the Autumn. But there is mounting concern among the President’s officials about what one dubbed as “naivety” in No10 over how long the talks will take. Britain is still yet to publish its formal negotiating objectives for the US deal – the first step in the process – despite the US making theirs public 11 months ago, in February last year. – The Sun

As Brexit nears, Johnson pushes for deeper trade ties with Africa

Prime Minister Boris Johnson will call for deeper investment ties between Britain and Africa at a summit for leaders of 21 African countries on Monday that comes days before his country will leave the European Union. After securing Britain’s departure from the EU, the world’s largest trading bloc, on Jan. 31, Johnson is keen to develop business ties with countries outside Europe. At the summit in London, Johnson will call for Britain to be the “investment partner of choice” for Africa. He will highlight deals worth billions of pounds with countries on the continent, underlining the roles British companies are playing in providing anything from smart street lighting in Nigeria to environmentally friendly breweries in Kenya. – Yahoo News

Labour leadership hopeful Jess Phillips insists she is not an ‘uber Remainer’…

Labour leadership contender Jess Phillips has insisted she has no plans for the UK to rejoin the EU after Brexit and is not an “uber Remainer”. But the Birmingham Yardley MP told Sky News’ Sophy Ridge On Sunday that it was not an “honest position” to close off future options or alliances. The backbench MP, who is among five hopefuls to make it into the second round of the Labour leadership contest, said: “I don’t think this is a conversation that’s even up for debate at the moment. There’s no plan to have some sort of campaign to rejoin the European Union. But any prime minister who wouldn’t look at the merits of every single alliance that our country could have for our safety, security, peace, and economic viability with a reasoned head on, anyone who closes off any option in the future, I just believe that that’s an honest position.” Ms Phillips said she did not hope that Brexit fails or causes a “calamity” in the country, but only that it would not cost people their jobs. – Express and Star

> WATCH: Labour leadership contender Jess Phillips discusses her Brexit stance on SKy News’ Sophy Ridge on Sunday

…while wannabe deputy leader Ian Murray says Labour should never rule out the UK rejoining the EU

Labour must leave open the door to the UK rejoining the European Union at some point in the future, Edinburgh South MP and deputy leadership hopeful Ian Murray has said. He outlined plans for a Labour Campaign for Britain’s Future which would look at how the nations and regions of the UK governed themselves, but also at relations with Europe. Mr Murray said he wanted the “closest possible” relationship with Europe and argued Labour should “never rule out rejoining the EU in the long-term if it is in the national interest”. Describing himself as “the most pro-EU candidate” in the deputy race, he said pro-Europe voices were needed in the short term to ensure that forthcoming trade talks see the UK opting for higher standards and not a race to the bottom with a “Trump trade deal”. – Edinburgh Evening News

> WATCH: Labour Deputy Leader contender Ian Murray on The Andrew Marr Show

Roger Bootle: Mrs Merkel take note – Brexit will prove there is an alternative to the atrophying EU

In an interview last week Mrs Merkel, the German Chancellor, was very revealing. Although she didn’t quite use these words, she is concerned that, shorn of EU rules and regulations, the UK could become something like Singapore-on-Thames. How will the EU respond to this threat? Most EU leaders and officials think that the EU enterprise is a great success. So if the departure of a major member threatens to force it to change this can only be a bad thing. Hence the insistence of EU negotiators that the UK will only be able to secure full “access” to EU markets if it adheres to EU regulations. The reality is that over recent decades the EU has been a zone of comparative economic failure. – Roger Bootle for the Telegraph (£)

Tom Welsh: The bureaucratic Blob is winning the long war against Brexiteers

Why is the Government giving Mark Carney a new job? Stepping down as governor of the Bank of England, he has been handed a role advising ministers on climate change ahead of a big international environmental summit to be held in Glasgow later this year. Fine, he is no Greta Thunberg, and it is at least welcome that ministers are seeking to mobilise private finance to address green issues rather than impose the hair-shirt enviro-Marxism favoured by Extinction Rebellion. But why him? Mr Carney is a darling of the metro-Remainer establishment, a public official who struggled for three years to hide his antipathy towards the public’s wish to leave the EU. These were meant to be yesterday’s men. – Tom Welsh for the Telegraph (£)

Simon Heffer: Why Big Ben’s Brexit bongs would chime with British tradition

The idea of Big Ben bonging on the night we are liberated from the European Union ties in with a tradition that, like most British customs, dates back only about a century or so. The first time the nation’s church bells rang as a signal of widespread relief was on Monday Nov 11 1918, when they signalled the end of what was supposed to be the war to end all wars. It was far more in keeping with ancient practice that Churchill’s administration ordered church bells to be silent after June 13 1940, and to be rung only to warn the people in the event of an invasion; it is popularly thought they were not rung again until V-E Day (when church bells were certainly rung), but, in fact, once the threat of invasion was lifted, the Government allowed their use again, from Easter Sunday 1943. – Simon Heffer for the Telegraph (£)

Brexit in Brief

  • Let’s give the ‘Festival of Brexit’ a chance – Manick Govinda for spiked
  • Record new year increase in average house price tag amid ‘post-election bounce’ – AOL News
  • UK food and drink sector shrugs off Brexit worries – City A.M.

And finally… A British Columbia pub has immortalised Brexit in its name

Nearly two years ago, when British expat Martyn Lewis opened his pub in Penticton, B.C., he admittedly called it the Brexit Pub as a way of getting publicity. The possibility of the U.K. leaving the European Union was a hot topic of conversation, and he needed to get some buzz for his new establishment. “Penticton is a very difficult economy to do business with, so I needed a name that wasn’t boring and that was impactful, and Brexit really paid dividends,” said Lewis, who grew up in Liverpool. “It’s been really well received.” So well received in fact, that even though the United Kingdom is scheduled to leave the European Union on Jan. 31, Lewis plans on keeping the name Brexit for his south Okanagan pub. – CBC News