Britain could also be forced to pay into a so-called “cohesion fund” to access the market, but European Relations Minister Hamish Falconer said the UK had not “accepted that principle”.
Mark Francois, chairman of the European Research Group of Tory MPs, told the Daily Mail that the report revealed the true cost of a Brexit reset.
He said: “Dynamic alignment means signing up to automatically follow future EU regulations in this area, in perpetuity, regardless of the will of Parliament — and despite our country having already voted democratically to leave the EU.
“In other words, we would become a ‘rule-taker’ again; and all because Labour are obsessed with rejoining the EU.”
And Esther McVey, the former Tory Minister, said Mr Burnham’s “Brexit betrayal” would force small businesses to “follow pointless bureaucratic regulations”.