That sounds fantastic, except that if everyone had their own rules to live by, that would go sour very quickly.
I believe homosexuality is fine. My next door neighbout doesn't. His rules say I should die. My rules say I should live. No government means no regulation. Therefore, if he killed me for being bisexual, he's following his own rules, but breaking mine. Who's in the right here?
You'd have groups of people who follow their own rules sticking together, and staying away from those who believe differently. Basically, you have a load of tribes and no co-operation. Humanity's been there. It failed.
Also, I'm pretty sure Britain is doing its bets to stay OUT of the EU, not control it