British business leaders have welcomed the UK’s latest post-Brexit trade deal with the EU, calling it a vital step towards restoring trade stability, while also warning of key challenges ahead — particularly around regulatory alignment and future sovereignty.
The agreement, seen as a reset in the UK-EU relationship, includes removal of many border checks on British food exports and steps toward greater collaboration in energy markets, tourism, and youth mobility.
The British Retail Consortium (BRC) praised the deal, especially its provisions to ease trade in perishable goods. Helen Dickinson, the BRC’s chief executive, urged the UK government to consider closer alignment with EU environmental and product safety standards, saying this would further reduce friction and benefit exporters.
Similarly, the hospitality and tourism sectors backed the agreement’s inclusion of a proposed “youth experience scheme”, which could allow young people to live and work more freely across the continent — a key issue post-Brexit.
“This is a very welcome step forward,” said UKinbound, which represents the inbound tourism sector. But the group added a note of caution: “The devil is in the details.”
Kate Nicholls, CEO of UK Hospitality, called for maximum flexibility in the scheme, suggesting the UK “mirror existing agreements with Australia and New Zealand.”
While supportive of the trade progress, the National Farmers’ Union (NFU) warned against excessive “dynamic alignment” — the mechanism under which the UK would commit to staying in sync with future EU rules.
Tom Bradshaw, NFU president, highlighted areas where the UK should retain regulatory independence, such as gene editing in agriculture.
“Full dynamic alignment comes at a significant cost of committing to future EU rules in which the UK will have little say,” Bradshaw said.
He emphasised the need for “equivalency” over “harmonisation”, to protect both innovation and competitiveness in UK farming.
The energy sector reacted positively to the deal’s commitment to explore re-entry into the EU internal energy market, from which the UK was previously excluded post-Brexit.
Alistair Phillips-Davies, CEO of SSE, welcomed closer integration, saying it could lower clean energy costs and improve the UK’s global competitiveness.
Energy UK’s chief executive, Dhara Vyas, called the deal a “step change” in the relationship between the UK and its closest trading partner.
“The energy industry has long called for closer collaboration on carbon pricing and electricity trading,” she said.
Although views differ on how closely the UK should mirror EU regulation, the overall reaction from industry has been one of cautious optimism.
Rain Newton-Smith, chief executive of the Confederation of British Industry (CBI), said: “Businesses do not need more politics — they need progress. This deal allows firms on both sides to breathe a sigh of relief with practical commitments to improve regulatory co-operation, bolster defence, and pursue mutual net-zero goals.”
With cross-sector support for pragmatic progress and friction reduction, the deal is being widely seen as a turning point in post-Brexit UK-EU relations. But as future negotiations unfold — especially around dynamic alignment — the government will face growing pressure to balance economic opportunity with regulatory sovereignty.
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British businesses welcome UK-EU trade deal but raise concerns over regulatory alignment
