That's not true Booglebox - the DfT have been cracking down on companies breaking the Freedoms of the Air for years, and the CAA have supported them actively. It's designed to provide some economic protection for the indigenous operators, and is the same the world over. The DfT aren't just trying to get in the way, they are actively supporting the UK GA industry.
At the moment the process is that the DfT inform all UK AOC holders via the BBGA who then seek no-objections. If there is an objection because of capacity in the market then the request will be denied. Then the DfT tell the Operator who objected and the screaming phone calls start...
It might seem like an arseache, but it's only enforcing the law in the same way that France does every day, like the States does every day, like... etc.
Having been on the receiving end of a rejection (as a UK Operator) to operate a France to non-EU charter recently I think it's fair that we're enforcing the law in the same way. It didn't seem to matter so much when the industry was over-demanded in 2007, but now, with massive over-supply, it does.
Of course, the only thing is that a lot of foreign operators just lie on their applications about what the flight is and then it doesn't get raised to the Operators for no-objections. But now the CAA are separating the passengers from the crew on arrival and asking a lot of pertinent questions, it's starting to become more difficult for people not complying with the law.
It's not everyone's cup of tea, I realise that, but it's not just the UK enforcing it strictly.
None of the above takes away from SAFA ramp inspections, which are happening more and more, which is the first part that mushroom69 refers to below.