UK government must prioritise regulatory alignment with the EU to drive economic growth
The UK government must prioritise closer regulatory alignment with the EU to deliver economic growth, say leading audit, tax and business advisory firm, Blick Rothenberg.
Nils Schmidt-Soltau, a partner at the firm, said: “It is encouraging to see the prime minister, Keir Starmer, acknowledging that the UK should seek closer alignment with the EU. But actions speak louder than words, and urgency is needed in the face of rapidly developing global economic and security concerns.”
He added: “For German, Austrian, and Swiss businesses investing in the UK, as well as British firms exporting to the EU, restoring regulatory alignment would simplify market access, reduce administrative burdens, and foster greater confidence in long-term planning. The UK government must prioritise negotiations that lead to mutual recognition of standards and a commitment to maintaining regulatory consistency with the EU, ensuring that businesses can operate efficiently and competitively on both sides of the Channel.”
Nils said: “The absence of a Sanitary & Phytosanitary (SPS) agreement has resulted in costly and time-consuming checks on agri-food products moving between the UK and EU, impacting exporters, importers, and consumers alike. From an economic perspective, reaching an SPS agreement would unlock substantial growth in the agri-food sector, support rural economies, and help stabilise supply chains. The UK government must address this in discussions with the EU, recognising that food and agricultural trade is a cornerstone of the UK–EU economic relationship.”
He added: “It is good that an agreement was reached in December 2025 for the UK to rejoin the Erasmus programme. However, it is disappointing that no agreement is yet in sight for a potential Youth Mobility Scheme. If the UK government wishes to increase its popularity among young people within its voter base, enacting this scheme could help.”
Nils said: “The government must build on the foundations laid by the “Friendship and Bilateral Cooperation Treaty” signed on 17 July 2025, which marked a significant step towards strengthening UK–German relations.”
He added: “At a time when there is growing recognition of the need for Europe to take a more unified position on the global stage and in defence, that momentum should also be used to support economic growth by driving forward the regulatory realignment between the EU and UK.”