Nissan concern at Chancellor comments

Comments over Brexit from the Chancellor of the Exchequer, which differ from those of the Prime Minister, have caused further concern over the future of car manufacturing in the UK.

Sajid Javid, in an interview with the Financial Times, said there would be “no alignment” with EU regulations after the UKleavestheuniononJanuary 31, and that some firms would lose out.

He added that the Treasury would not support manufacturerswhofavouredalignment with EU rules, as they have had since 2016 to prepare for Brexit. The UK's 11-month transition period begins immediatelyafterEUwithdrawal.

PrimeMinisterBorisJohnson visited Sunderland in the run up to the General Election as the Conservatives targeted Leave-voting Labour strongholds and said his deal would create ‘a state of equivalence with our European Union’.

Mr Javid said: “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."

Mr Javid would not specify which EU rules would be dropped, but said some businesses would benefit from Brexit, while others wouldn’t.

Speaking during a visit to Washington two days before the election, the PM said his Brexit deal would leave existing trade regulations with the EU “perfect and intact.” While on Wearside, Mr Johnson also said Nissan’s supply chains would be protected under his deal.

He added: “Supply chains will be protected. And we will makesurethatpeoplewillcontinue to invest in this country, and they will.”

It comes as 70% of Nissan’s exports are to Europe.