July 11, 2018 / 11:38 AM / 4 months ago

UK must be able to diverge from EU on services after Brexit - minister

FILE PHOTO: Britain's Minister for the Cabinet Office David Lidington arrives in Downing Street, London, January 29, 2018. REUTERS/Toby Melville

LONDON (Reuters) - Britain’s vast services industry must be able to diverge from European Union rules after Brexit because there is a risk of “unwelcome measures” that may undermine the sector, Cabinet Office minister David Lidington said on Wednesday.

“The reason why we are proposing to treat services differently is because it is in services where regulatory flexibility matters most for both current and future trading opportunities,” Lidington told parliament.

“While the EU acquis on goods has been stable for about 30 years, the EU acquis on services has not been and the risk of unwelcome EU measures coming into play through the acquis on services is much greater.”

Reporting By Andrew MacAskill and Elizabeth Piper

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