Labour's Evolving Stance on Brexit: A Shift Towards Closer EU Ties

As the United Kingdom approaches the tenth anniversary of its referendum to leave the European Union, the debate surrounding its future relationship with the bloc remains contentious. Sadiq Khan, the Mayor of London, has asserted that rejoining the EU is "inevitable," urging the government to commit to rejoining the customs union and single market before the next general election in 2029. However, the UK Government maintains its position against such moves. Recent statements from key Labour figures suggest a potential shift in the party's approach to Brexit, indicating a desire for closer ties with the EU.

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Labour leader Sir Keir Starmer, who previously supported a second referendum, has ruled out rejoining the EU since leading Labour to a majority in the 2024 general election. Nonetheless, Chancellor Rachel Reeves has argued for alignment with EU regulations where beneficial, stating that regulatory independence should be "the exception, not the norm." Business Secretary Peter Kyle has also indicated that discussions around a customs union are necessary, although he cautioned that rejoining would be a lengthy process. Health Secretary Wes Streeting has highlighted the economic benefits of a customs union, suggesting that it could stimulate growth.

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Despite the growing calls for closer EU ties, there are significant divisions within the Labour Party. Some MPs advocate for a model based on sector-specific agreements rather than a formal customs union. A Labour MP criticized Streeting's customs union proposal as a strategic move to enhance his leadership credentials. Additionally, the right-wing Reform UK party has pledged to reverse any closer alignment with the EU if it gains power, reflecting the ongoing political tensions surrounding Brexit.

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The Labour Party's evolving stance on Brexit comes amid concerns about the government's current approach, which many within Labour believe is insufficient to drive economic growth. Labour insiders report a consensus that Brexit has not delivered the promised benefits, leading to speculation about potential leadership candidates positioning themselves for a more pro-European agenda. The party's internal discussions suggest a recognition of the need for a more robust relationship with the EU to address economic challenges.

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The UK Government has reiterated its commitment to its existing Brexit strategy, with Prime Minister Rishi Sunak emphasizing that any closer alignment with the EU would be considered on a case-by-case basis. Meanwhile, Labour's leadership is navigating the complexities of internal party dynamics while responding to external pressures for a more favorable relationship with the EU.

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While some Labour figures advocate for a customs union, others express skepticism about its feasibility and benefits. The debate continues over the best approach to EU relations, with differing opinions on the potential economic impacts and political ramifications of such a shift.

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• “If we are serious about growth, we must be braver about our relationship with Europe,” — Tracy Brabin, Mayor of West Yorkshire

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• “I think it’s inevitable — the direction of travel at some stage we’re going to rejoin the European Union,” — Sadiq Khan, Mayor of London

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• “Wes will regret going for customs union as it’s a lot of pain for little gain,” — Anonymous Labour MP

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• “Britain is still trying to cherry-pick,” — David Henig, Director of the UK Trade Policy Project

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