Prime Minister Keir Starmer's push for a Brexit 'reset' could position the United Kingdom "very close" to rejoining the European Union's single market, according to a close political ally. The suggestion highlights the significant, and potentially costly, direction of the new government's European policy.
The Path to Closer Alignment
Tom Baldwin, a former adviser to Ed Miliband and Sir Keir's biographer, stated that the Prime Minister's recent comments on seeking closer ties had opened up a "whole range of possibilities". He framed this as a pragmatic strategy by a leader who wishes to avoid choosing between Europe and America.
However, Mr Baldwin also outlined a more ambitious vision, suggesting Labour might seek a second-term mandate to bring the UK extremely near to single market membership. He argued this would deliver greater economic growth than simply rejoining the customs union, an option favoured by the Liberal Democrats.
Sir Keir himself sparked debate by telling the BBC he was examining options for better access to the single market, stating: "I think we should get closer and if it's in our national interest to have even closer alignment with the single market, then we should consider that." He has, however, repeatedly ruled out full re-entry to the single market or customs union.
The Price of 'Pay to Play'
Sources in Brussels have been clear that any move by the UK to reduce trade barriers will come at a price, adopting a "pay to play" approach. Legislation expected as early as next month will align the UK with EU rules on areas including food standards, the electricity market, animal welfare, and pesticide use.
Potential concessions causing concern in Westminster reportedly include a possible ban on gene-editing of crops, which could scupper the UK's Genetic Technology (Precision Breeding) Act 2023. This law was designed to help farmers grow vitamin-enhanced crops, using technology distinct from traditional genetic modification (GM).
Furthermore, the EU is pushing for a youth free movement pact, which could see large numbers of young Europeans coming to the UK to work. The financial contributions required from the UK government are also expected to be substantial.
Erasmus and the Rising Cost of Cooperation
The government has already committed to a major financial outlay by rejoining the EU's Erasmus+ student exchange programme. Before Christmas, ministers announced a £570 million deal to re-enter the scheme, a sum that is double what Boris Johnson rejected as too expensive in 2021.
Worryingly for the Treasury, Brussels has indicated a previous 30% discount will not be repeated, meaning the annual cost could rise to £810 million in future years. The deal also expands eligibility, meaning students from associate members like Turkey could come to the UK from 2027, with the EU aiming to include nations such as Egypt, Algeria, and Morocco.
Cabinet Office minister Nick Thomas-Symonds recently finalised the Erasmus agreement with European Commission Vice-President Maros Sefcovic, marking one of the first tangible results of Labour's promised reset.
The coming months will reveal the full extent of the concessions the UK is willing to make, and the economic price it is prepared to pay, in pursuit of Sir Keir Starmer's vision for a fundamentally reshaped relationship with the European Union.
