In a notable pivot, the Labour Party is redefining its approach to Brexit, focusing more on the concerns of Remain voters while acknowledging the economic consequences of leaving the European Union. Chancellor Rachel Reeves, in her recent Mais lecture, articulated the party’s belief that Brexit has had a detrimental impact on the UK economy. This shift comes as Labour aims to address the nation’s sluggish economic performance and seeks to build a stronger relationship with the EU, distancing itself from previous commitments to refrain from revisiting the Brexit debate.
Acknowledging Economic Challenges
During her address, Reeves explicitly stated, “Brexit did deep damage,” highlighting a growing consensus within the party that a more ambitious strategy is needed to navigate the post-Brexit landscape. Labour’s 2024 election manifesto proposed renegotiating the Trade and Cooperation Agreement established by Boris Johnson in 2020, particularly concerning EU customs checks on food and agricultural products. While the party has maintained its red lines—no return to the single market or customs union—there is a clear indication of a desire to realign regulatory frameworks with the EU where it benefits the UK.
Keir Starmer, the party leader, echoed this sentiment shortly after the autumn Budget, noting that “Brexit had significantly hurt our economy.” His remarks suggest an understanding that to rejuvenate the UK’s economic prospects, Labour must embrace a more collaborative stance with the EU, despite the risks associated with alienating traditional Brexit supporters.
Internal Pressures and Calls for Change
The pressure for a revised stance on Brexit is evident within Labour’s ranks. Health Secretary Wes Streeting remarked at a literary festival that it was time to confront Brexit’s challenges openly. Meanwhile, Deputy Prime Minister David Lammy asserted that the economic fallout from Brexit is “self-evident.” These comments reflect an emerging narrative within the party that prioritises economic growth over strict adherence to prior pledges regarding Brexit.
Additionally, Sadiq Khan, Mayor of London, has publicly called for the UK to rejoin the EU customs union and single market ahead of the next election. This suggestion adds to the growing discourse within Labour about the need for a more inclusive approach to Brexit policy as the party navigates its electoral future.
Reconnecting with Working-Class Voters
Labour’s initial stance on Brexit was largely shaped by its painful defeat in the 2019 general election, where the party struggled to reconnect with working-class voters who had shifted towards the Leave campaign. Despite winning the 2024 election, Labour’s relationship with these voters remains tenuous. Data suggest that Labour has not made significant strides in attracting those who previously supported Brexit, even as it garnered substantial support from pro-EU voters.
Recent polling indicates that approximately 80% of Labour’s supporters in the 2024 election were in favour of rejoining the EU—a slight decrease from 86% in 2019. The challenge lies in balancing the needs of Remain voters with those of the working-class constituency that Labour has historically relied upon. The party’s current standing in the polls shows a worrying trend, with support dwindling to just 19%, trailing behind the Reform Party, which appeals to Brexit supporters.
The Electoral Implications of Labour’s Strategy
Labour’s strategy moving forward must consider the potential fallout from its evolving stance on Brexit. As the party attempts to regain favour with pro-EU voters who have shifted to the Greens and Liberal Democrats, it must also tread carefully not to alienate its existing base. Current polling reveals that Labour has lost ground among both Leave and Remain supporters, underscoring the complexity of appealing to a diverse electorate.
Moreover, the party’s approach to Brexit is not universally accepted among its supporters. While many back the idea of a closer relationship with the EU, a significant portion desires a more radical shift towards rejoining the Union. Polls indicate that 82% of Labour voters support negotiations to rejoin the EU, which raises questions about the efficacy of the party’s current strategy. The perceived benefits of Labour’s reset must be effectively communicated to its supporters to avoid potential backlash.
Why it Matters
Labour’s evolving position on Brexit is crucial not only for its electoral success but also for the broader economic landscape of the UK. As the party grapples with the realities of post-Brexit Britain, its ability to forge a closer relationship with the EU could have significant implications for trade, investment, and economic growth. Balancing the needs of both Remain and Leave supporters will be a defining challenge for Labour as it seeks to reclaim its status as a leading voice for the British electorate in an ever-changing political climate.
