Critics have accused Sir Keir Starmer of a Brexit “betrayal” over a new deal which will shackle UK businesses to the EU’s rulebook. Ministers have urged British firms to prepare for the changes, arguing it will make trade with Brussels cheaper, easier and quicker.

The Government insisted the move “will free British food and farming businesses from the mountains of paperwork” and cut red tape — something sceptics have disputed. The deal is known as ‘dynamic alignment’ in Brussels, which is when a non-EU country or territory agrees to automatically update its domestic laws and standards to match EU regulations in certain areas. This will reportedly see oversight of food and agricultural trade handed to the European Court of Justice, effectively leaving the UK with no say over current or future regulations.

John Longworth, Chairman of The Independent Business Network and former head of the British Chamber of Commerce, said the move is an “absolute disaster”.

He told the Daily Mail: “The whole concept that the Government is following at the moment is a betrayal of the democratic decision on Brexit, without a mandate to do it.

“It’s actually disastrous for businesses as well. It’s appalling because we’re applying EU rules and regulations to 100 % of businesses when only 8% of businesses actually export to Europe.

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“It’s just another burden of red tape loaded onto businesses, which at the moment are already reducing employment because the cost of running businesses is soaring.

“Whereas 8% of businesses export to the EU, 14% of businesses export to the rest of the world, and the majority of trade now is with the rest of the world and not the EU and so this just makes us less competitive in world markets.”

Also speaking to the Mail, Mark Francois, Chairman of the European Research Group of Tory MPs, described dynamic alignment as “code for becoming a rule taker from Brussels again”.

The deal is part of the Prime Minister’s wider “reset” deal with the EU as he seeks closer ties with Brussels.

The Government has confirmed it is working towards a mid-2027 start date for the new agreement.

It said it wants businesses in the sector to start preparing for the changes now, adding it is aiming to finalise negotiations and secure the best deal for UK businesses later this year.

Environment Secretary Emma Reynolds said: “We are resetting our relationship with the EU, our closest and largest trading partner, to make trade easier and cheaper, and deliver tangible benefits for British businesses.

“We are talking about real businesses, real employers: the Somerset cheesemaker with export trade halved, the Welsh shellfish trader turning down orders because their catch isn’t fresh by the time the paperwork is done, the Scottish farmer who can no longer sell seed potatoes to customers they’ve supplied for decades.

“By reducing delays and unnecessary paperwork, this deal will help keep shelves stocked, protect jobs and put downward pressure on food price inflation for families across the country.

“British businesses deserve better and we will work hand-in-hand with them to ensure this deal is a success.”