The UK government is to push for the EU to sign up to "permanent equivalence" for the financial services sector to ensure that the City of London continues to have access to EU markets after Brexit, according to the FT.
A photographed unreleased briefing paper revealed that this would be the "opening position" taken by the Chancellor Sajid Javid in talks with the EU about equivalence.
The FT reported that the briefing paper is also said to have shown that UK negotiators will be seeking "binding processes in the free trade agreement" to "stabilise equivalence", particularly for the UK's financial services regime. This is over concerns that, at the moment, the EU can revoke equivalence agreements at 30 days' notice and has been known to do so during talks with other trading partners in the past.
The UK will be outside the single market and outside the customs union, so we will have to be ready for the customs procedures and regulatory checks that will inevitably follow"
Cabinet member Michael Gove has told businesses to prepare for checks at the UK border from January next year, as frictionless trade with the EU comes to an end.
According to the BBC, speaking at a "border delivery group" event Gove said: "The UK will be outside the single market and outside the customs union, so we will have to be ready for the customs procedures and regulatory checks that will inevitably follow".
The FT also reported that Gove said a "smart border", which would be a way of reducing trade friction between the UK and EU, will now not be ready until 2025.
This article was first published by InvestmentWeek, a sister title to International Investment