Savid Javid has his boxing gloves on. But who is he really fighting and why?

The chancellor’s interview with the FT on the weekend was brutal, fanning the anxiety over the uncertainty over the regulatory environment post-Brexit. He knocked down British businesses “there will not be alignment, we will not be a ruletaker, we will not be in the single market” and without a referee in sight, he carried right on “and we will not be in the customs union — and we will do this by the end of the year”.  Where is Herb Dean when you need him? A flood of anger hit social media with businesses shouting ringside.

A trade negotiation is not a game of poker

Yes we all know Brexit is happening, but nobody knows how. The EU has published negotiating documents setting out its position, but the UK’s position is nowhere to be seen. Giving Westminster the benefit of the doubt, you could say that by showing the EU it is willing to sacrifice the businesses who have not ‘adapted’ to new rules post-Brexit, it is sending a clear message that the UK’s red lines will not be crossed. But a trade negotiation is not a game of polker. How can you reach an agreement or – find a ‘landing zone’  – as negotiators say, without making your position clear? How can businesses plan investment without clear ideas of regulatory changes? Today the Institute of Directors called on the government to publish its negotiating objectives. Interestingly, the UK Trade Policy Project analysis shows that progress has been made at the official level but lack of transparency is “acting as an obstacle to UK trade policy being sufficiently mature to be ready for negotiations”.

Consultation not confrontation

All negotiators know very well that the toughest negotiations are always at home. The chancellor needs to hang up his boxing gloves, step out of the ring and engage in meaningful consultations with British business and save the confrontation for Brussels.