The Liberal Democrats will call on Andy Burnham to abandon Labour's cautious stance on Europe and push for the UK to rejoin the single market, marking a significant strengthening of their EU policy ahead of the 10th anniversary of the Brexit vote.
Party leader Ed Davey is expected to challenge Burnham, the mayor of Greater Manchester, to scrap Labour's red lines on the customs union and single market if he becomes prime minister, and immediately begin talks on a more ambitious deal with the EU. Davey will argue that Labour's approach has been marked by 'torpor and timidity' and is holding Britain back.
The Lib Dems' plan involves joining the single market as a member of the European Free Trade Agreement alongside Norway and Iceland, and forming a new UK-EU customs union. This would fully remove trade barriers and reverse years of economic damage from Brexit, Davey will say, adding that the Conservatives' Brexit experiment has failed and is costing the UK £90bn a year.
A return to the single market would require accepting free movement of people, putting Davey on a collision course with the Tories and Reform UK over immigration. EU officials have said they are open to the UK joining the European Economic Area but have ruled out a British proposal for common rules on goods without free movement.
Former European Council President Charles Michel told the Guardian that the single market was 'not for sale' and that the UK's wish to take advantages without constraints had been demonstrated throughout Brexit negotiations. He said the EU would react with 'a positive spirit' if the UK ever decided to rejoin, but emphasised this was a question for UK politics.
The Lib Dems are also calling for deeper defence cooperation with the EU, including a European security council and a rearmament drive to improve Nato's operational capabilities. The party believes the UK could use its defence prowess as a bargaining chip with Brussels.
