Sir Keir Starmer is preparing for parliamentary battles over a new bill that would grant ministers significant powers to align UK regulations with EU standards. The legislation, part of the government's EU 'reset', focuses initially on agrifoods and electricity trading deals currently under negotiation with Brussels.
The bill would introduce an alignment mechanism for these sectors and could allow future governments to extend alignment to other areas. It is expected to be introduced in the coming months and carried over into the next parliamentary session, with MPs voting before the final deal is agreed.
Government sources anticipate major opposition, particularly from the Liberal Democrats, who plan to amend the bill to require a binding vote on a customs union. More than a dozen Labour MPs previously rebelled on a similar Lib Dem motion. The Conservatives have demanded full parliamentary scrutiny of the final deal.
The prime minister has signalled that the UK may seek sectoral deals to deepen single market access, likened to a 'Swiss-style' arrangement, rather than a customs union. He argued that a customs union could undermine trade deals with India and the US. Downing Street confirmed the UK might pay for access, with the potential to add nearly £9bn to the economy by 2040.
Both sides hope to finalise the agrifoods deal, known as an SPS agreement, by the second half of this year. The UK has also begun negotiations to join the EU's internal electricity market, but tensions over payments have already scuppered talks on participation in the €150bn Safe security fund.
