In a significant shift in the UK’s post-Brexit strategy, Prime Minister Keir Starmer has signalled a willingness to pursue closer economic ties with the European Union. This move is designed to send a message to businesses, Brussels, and other European capitals, as well as to appease backbench MPs within his own party.
The Prime Minister’s office has indicated that closer post-Brexit economic relations will now be part of an annual process of bilateral talks, rather than just the formal review of the UK-EU deal this year. This is seen as a response to political questions about a more ambitious Brexit reset, including the possibility of rejoining the EU customs union.
While some Labour backbenchers, union leaders, and cabinet ministers have joined calls for such a move, crystallised by Liberal Democrat efforts in Parliament last year, Sir Keir Starmer has made it clear that this is not the priority at the moment. Instead, he is focused on a “closer relationship” with the single market, which would not mean ripping up the new trade deals the UK has signed with the US and India, as well as potential future agreements in the Middle East.
The Prime Minister’s shift in stance comes as the UK approaches the 10th anniversary of the Brexit referendum. It reflects a confluence of economic, political, and geopolitical factors, including the impact of post-Brexit red tape on British exporters and the changing global landscape, as evidenced by the US National Security Strategy’s criticism of Europe’s “current trajectory.”
Domestically, Labour also faces the prospect of being outflanked on Brexit not just by the Liberal Democrats, but also the Green Party, which is targeting the party’s London heartlands in the upcoming local elections.
The details of the UK’s alignment with EU rules in areas such as food and farm exports, electricity, and emissions trading are yet to be finalised. However, the Prime Minister’s words suggest a willingness to explore further regulatory alignment in exchange for reducing post-Brexit trade barriers across sectors like manufacturing, automotive, and chemicals.
While the British Chambers of Commerce has reported that a majority of its members believe the UK-EU trade deal is not helping sales growth, the Prime Minister’s move towards closer ties is seen as a pragmatic attempt to address the economic realities of the post-Brexit landscape and strengthen the UK’s position on the global stage.
