The UK has reportedly agreed to give funding to some of the European Union's poorer nations as part of plans to rejoin the bloc's electricity market, a move that has angered Brexiteers.
A leaked draft text shows Labour has agreed to pay into EU development schemes as the price for British energy companies being allowed to trade freely in its electricity single market. Under the reported agreement, British taxpayer money will be injected into infrastructure projects in some of the EU's smaller economic powers.
Financial contribution to EU regions
A draft joint EU-UK statement, seen by The Telegraph, said: "We agree that the UK's participation in parts of the EU's internal market requires an appropriate level of financial contribution towards reducing economic and social disparities between the regions of the EU that reflects the degree of the UK's participation in the EU's internal market."
The statement has been circulated among European diplomats ahead of a joint summit later this month, reports say. New trade deals with the EU are expected to be unveiled at the summit in Brussels on November 20.
Expected agreements at summit
Agreements on a new food and drink agreement, a youth mobility scheme and a pact on emissions trading are all expected to be signed by the two sides.
The Prime Minister has made stronger UK-EU ties a key focus, but his pro-EU comments have fuelled speculation about the prospect of Britain returning to the bloc or adopting its freedom of movement rules.
On Tuesday, he said he has not proposed the return of freedom of movement but vowed to make the public "the boss" in deciding Britain's future relationship with Brussels. He said an "honest discussion" was needed about how temporary migration from Europe had been replaced by long-term settlement in larger numbers since Brexit.
Reaction and political fallout
The PM told the Commons last week there was "no confusion at all" about his position when asked if he wanted a referendum on rejoining the EU. The PM committed to sticking to red lines set out in Labour's manifesto — which rule out returning to the customs union, single market or free movement — for the duration of this Parliament.
The PM prompted fury among Brexiteers in September after acknowledging he could go "all the way" and propose rejoining the EU. When asked whether he wanted to reverse the 2016 Brexit referendum, he said he wanted to "look at the options".
The Conservatives responded by pointing to his stance during his Makerfield by-election campaign of not wanting to "rerun" the Brexit debate. Tory deputy leader Alex Burghart said: "You cannot trust a word Andy Burnham says. Just a few weeks ago he said he wanted to move on from the Brexit arguments and now he is dragging Britain back into them by floating the prospect of rejoining the EU."
A Government spokesman said: "We are building an ambitious, close relationship with the EU that will strengthen our economy, protect British industry, and create more opportunities for young people across the UK."
