Diverging from European Union rules after Brexit will mean more costs than benefits for British business, a report by the CBI employers’ group says.

In a survey of 23 industry sectors, the vast majority preferred continued close alignment with EU regulations.

Agriculture, shipping and tourism might benefit, but this was “vastly outweighed” by the impact on other sectors, the CBI said.

The report, called Smooth Operations, suggests the UK could still exert influence over important regulatory decisions through continued membership of many EU agencies.