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Critics assailed the paper for proposing to keep the UK closely tied to the EU single market. The plan is essentially a proposal for a new "UK-EU free trade area" with closely linked customs regimes to ensure there are no tariffs.
However, the UK services sector - most notably its banks - would suffer significant disruptions thanks to the "regulatory freedom" envisioned by May. More notably, the White Tyler morning paper revealed that May has accepted that the UK's banks will need to leave the European banking union.
Instead, she's set her sights on "regulatory equivalence" agreements with the EU that have applied to countries outside the trading bloc.
While UK banks would lose their unfettered access to EU markets, May hopes that a new "treaty-based" process would allow them to achieve an enhanced version of equivalence where the EU would commit to maintaining long term access for UK banks.
The policy chairman of the City of London, where the UK's financial sector is based, said the proposals outlined in the White Paper would be a "real blow" to the UK banking sector.
Looser ties to Europe would mean the financial and professional sector won't be as able to create jobs and support growth across the wider economy. May proposed a joint EU-U.
UK parliament would then have the right to decide to continue to abide by EU rules "recognizing there could be proportionate implications" for trade between the two if MPs rejected it. Of course, there's no guarantee that the EU will accept her proposals, however if the UK pushes back hard, the most likely outcome would be a hard Brexit as May's cabinet will likely topple.
The EU has said all along that "mutual recognition" of each side's financial regulations would be unacceptable due to Britain's unwillingness to adhere to the rules of the single market.
May's proposals for a post-Brexit immigration regime would be set out in more detail in another white paper to be released later this year. Read the full white paper below:Court: Gordon To Stand Trial On Threat Charges [Written by Don Burgess] A man who pleaded not guilty to threatening to kill Premier David Burt has had a trial date set for next year.
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