The UK government will not accept automatic alignment of its financial services rules with the European Union, making the City of London a red line in talks on closer ties with Brussels. [Bloomberg reported on Tuesday](https://www.morningstar.com/news/alliance-news/1794389350325830200/press-uk-wont-accept-alignment-of-financial-services-rules-with-eu) that British officials have told their EU counterparts the UK will not sign up to a mechanism under which it would automatically follow EU regulations in financial services. ## What the red line covers The government is negotiating closer ties with the EU that could include alignment in areas such as agriculture and energy. But officials have told Brussels that applying the same approach to financial services is a line they will not cross, because ministers want to protect the City's independence. A government spokesperson declined to comment on the negotiations but stressed that Britain's financial services were a key national strength. ## A position carried over from Starmer The stance continues the position taken by Keir Starmer's government, which exempted financial services from its push for closer alignment. Dynamic alignment on financial services was not included in a paper of common understanding agreed between the UK and the EU in 2025. ## What happens at the Brussels summit Prime Minister Andy Burnham will travel to Brussels on 20 November for a "reset" summit expected to cement deals on food and farm export standards, emissions trading and a youth experience scheme. He will then set out options for the UK's longer-term relationship with the EU. While closer cooperation to cut friction in financial services trade would be welcomed in the Square Mile, becoming a rule-taker from Brussels would not, [The Times reports](https://www.thetimes.com/business/companies-markets/article/what-british-businesses-want-from-europe-wgp9dm756).