Starmer Excludes Financial Services From EU Alignment Talks as UK Pursues Targeted Alignment on Goods
The decision prioritizes the City’s post‑Brexit regulatory autonomy by confining any EU rule‑taking to non‑financial areas.
Overview
- Government officials confirmed the prime minister has ruled out bringing UK finance back under EU regulatory frameworks despite ministerial interest in cooperation.
- Ministers are preparing legislation to permit selective adoption of Brussels standards in areas such as food and energy to reduce trade friction.
- Senior City figures are pressing for formal carve‑outs for finance and caution that reintroducing EU rules could create uncertainty for London’s financial hub.
- Industry leaders say appetite for EU equivalence has waned since Brexit, citing benefits from UK divergence including the scrapped bonus cap and Bank of England changes to MREL thresholds.
- Officials say cooperation with Brussels on financial services remains possible where it serves the economy, as Conservatives and Reform UK oppose wider alignment and some voices urge deeper ties.