{"id":786289,"date":"2026-02-24T17:42:23","date_gmt":"2026-02-24T17:42:23","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/786289\/"},"modified":"2026-02-24T17:42:23","modified_gmt":"2026-02-24T17:42:23","slug":"uk-has-done-little-to-diverge-from-europe-since-brexit","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/786289\/","title":{"rendered":"UK has &#8216;done little to diverge&#8217; from Europe since Brexit"},"content":{"rendered":"<p>\t\t\tTuesday 24 February 2026 3:20 pm\n\t\t\t<\/p>\n<p>\t\t\tShare<\/p>\n<ul>\n<li class=\"social-share__popup-item\">\n<p>\t\t\t\t\t\tFacebook\t\t\t\t\t\tShare on Facebook\n\t\t\t\t<\/li>\n<li class=\"social-share__popup-item\">\n<p>\t\t\t\t\t\tX\t\t\t\t\t\tShare on Twitter\n\t\t\t\t<\/li>\n<li class=\"social-share__popup-item\">\n<p>\t\t\t\t\t\tLinkedIn\t\t\t\t\t\tShare on LinkedIn\n\t\t\t\t<\/li>\n<li class=\"social-share__popup-item\">\n<p>\t\t\t\t\t\tWhatsApp\t\t\t\t\t\tShare on WhatsApp\n\t\t\t\t<\/li>\n<li class=\"social-share__popup-item\">\n<p>\t\t\t\t\t\tEmail\t\t\t\t\t\tShare on Email\n\t\t\t\t<\/li>\n<\/ul>\n<p><img width=\"742\" height=\"495\" src=\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2026\/02\/GettyImages-971520204-e1719581079698.jpg\" class=\"media \" alt=\"LONDON, ENGLAND - JUNE 11: EU and Union Jack flags are waved as anti-Brexit demonstrators gather outside the Houses of Parliament on June 11, 2018 in London, England. The EU withdrawal bill returns to the House of Commons tomorrow for the first of two sessions in which MP's will consider amendments imposed by the Lords, and another set of fresh amendments. (Photo by Dan Kitwood\/Getty Images)\" fetchpriority=\"high\" loading=\"eager\" decoding=\"sync\"  \/>\t\tEU legislation has &#8216;barely been reformed&#8217; since Brexit\t<\/p>\n<p>The UK has \u201cdone little to diverge\u201d with the European Union on regulation since <a href=\"https:\/\/www.cityam.com\/dropping-of-post-brexit-trade-border-project-will-cost-uk-growth\/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">Brexit<\/a>, a new report suggests, but that has not stopped the bloc\u2019s own legislation increasing divergence between the two jurisdictions.\u00a0\u00a0<\/p>\n<p>Across a swathe of issues, analysts at UK in a Changing Europe (UKICE) said the UK had cleaved much closer to EU regulations than it could have done, despite having the freedom to forge its own regulatory path after Brexit.<\/p>\n<p>\u201cOn environmental, product and labour standards, EU-era legislation has barely been reformed, even though rules on habitats protections, vacuum power levels and working hours were major targets for Brexiters,\u201d <a href=\"https:\/\/media.ukandeu.ac.uk\/wp-content\/uploads\/2026\/02\/UKICE-Alignment-and-Divergence-Report-24-FEB.pdf\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">they wrote<\/a>.\u00a0<\/p>\n<p>UKICE suggested that the lack of divergence was partly an attempt to avoid imposing extra administrative costs on businesses, which would have to conform with two different rulebooks.\u00a0<\/p>\n<p>The think tank also noted that there was limited political support for any major bonfire of regulations on employment or environmental law.\u00a0<\/p>\n<p>But while the UK has not actively diverged from the EU, new legislation in the bloc has created \u2018passive divergence\u2019 between the two jurisdictions, where the EU changes its rules and the UK does not follow.<\/p>\n<p>For example, the EU has passed major regulatory packages on the presence of harmful substances in products like toys, and also now requires goods to carry a \u2018Digital Product Passport\u2019, providing information on the materials in the product and its environmental impact.\u00a0<\/p>\n<p>These new rules, as well as the non-tariff barriers imposed by the 2021 Trade and Cooperation Agreement, have weighed heavily on UK goods trade to the EU since Brexit.\u00a0<\/p>\n<p>In 2024, goods exports to the EU were <a href=\"https:\/\/commonslibrary.parliament.uk\/research-briefings\/cbp-7851\/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">18 per cent below their 2019 level<\/a> in real terms, with some sectors impacted even more severely. A recent analysis of HMRC data by the National Farmers\u2019 Union showed UK farm exports to the EU have dropped by 37.4 per cent in the five years since 2019.<\/p>\n<p>By contrast, services exports to the EU have performed much better, with the value of services exports 19 per cent ahead of their 2019 level in real terms.\u00a0<\/p>\n<p>\t\t\t\t\tRead more<\/p>\n<p>\t\t\t<a class=\"read-more__link\" href=\"https:\/\/www.cityam.com\/uk-needs-deeper-integration-with-eu-says-starmer\/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">UK needs deeper integration with EU, says Starmer<\/a><\/p>\n<p>The government has committed to pursuing a \u201creset\u201d with the EU, potentially pursuing dynamic alignment on areas like electricity markets and food safety standards.\u00a0<\/p>\n<p>\u201cIf it\u2019s in our national interest to have even closer alignment with the single market, then we should consider that,\u201d Keir Starmer said in January.\u00a0<\/p>\n<p>Businesses have welcomed the government\u2019s attempts to pursue a closer relationship with the EU, although many have urged ministers to be more ambitious.\u00a0<\/p>\n<p>In an interview today with CNBC, Emma Rowland, trade policy advisor at the Institute of Directors (IoD), said business leaders would \u201coverwhelmingly choose closer alignment with the EU over the US.\u201d<\/p>\n<p>Financial services\u00a0\u00a0a \u2018rare area\u2019 of divergence <\/p>\n<p>Financial services has been a \u201crare area\u201d where the UK has successfully diverged from EU rules with the support of the sector.\u00a0<\/p>\n<p>\u201cUK financial services are large enough to compete with the EU, leading both Conservative and Labour governments to seek a competitive edge by loosening the regulatory requirements imposed upon firms,\u201d the report said.\u00a0<\/p>\n<p>For example, the Prudential Regulation Authority chose to delay implementing Basel 3.1 rules by a year, while the Financial Conduct Authority no longer requires major short sellers to disclose their identity, both measures which align the UK more closely with the US than the EU.\u00a0<\/p>\n<p>Ahead of any future agreements, City figures have lobbied the government to be left out of any deals securing closer alignment with the EU.\u00a0<\/p>\n<p>\u201cThe UK has made substantial progress on financial services reform over the past few years and most regulatory lawyers will tell you that we have significantly less friction in our regulatory framework compared with most jurisdictions in Europe,\u201d Steven Fine, chief executive of Peel Hunt, told the FT.<\/p>\n<p>\u201cYou don\u2019t want to create potential uncertainty just as the City is recovering its mojo.\u201d<\/p>\n<p>\t\t\t\t\tRead more<\/p>\n<p>\t\t\t<a class=\"read-more__link\" href=\"https:\/\/www.cityam.com\/auto-enrolment-closed-the-gap-but-more-needs-to-be-done-says-pension-minister\/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">Auto-enrolment closed the gap but more needs to be done, says pension minister<\/a><\/p>\n<p>\t\tSimilarly tagged content: <\/p>\n<p>\t\t\tSections\t\t<\/p>\n<p>\t\t\tCategories\t\t<\/p>\n<p>\t\t\tPeople &amp; Organisations\t\t<\/p>\n","protected":false},"excerpt":{"rendered":"Tuesday 24 February 2026 3:20 pm Share Facebook Share on Facebook X Share on Twitter LinkedIn Share on&hellip;\n","protected":false},"author":2,"featured_media":786290,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[5226],"tags":[802,43523,748,51,2000,299,5187,1699,222536,7558,4884,2441,12,2443,16,15],"class_list":["post-786289","post","type-post","status-publish","format-standard","has-post-thumbnail","category-brexit","tag-brexit","tag-brexit-reset","tag-britain","tag-business","tag-eu","tag-europe","tag-european","tag-european-union","tag-financial-conduct-authority-fca","tag-financial-services","tag-great-britain","tag-markets","tag-news","tag-regulation","tag-uk","tag-united-kingdom"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/116126849868441295","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/786289","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=786289"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/786289\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/786290"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=786289"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=786289"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=786289"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}