Back in 2018, a mere a short phrase to ignite the party's annual gathering demonstrating the party was becoming disillusioned with Jeremy Corbyn. Although not exactly stirring rhetoric, the phrase were greeted with rapturous applause as delegates rose in an impromptu ovation.
As the commotion died down, Keir Starmer, stood at the podium, blinking in surprise. He was unaccustomed to his speeches producing such a reaction. All he had said was: "Nobody is ruling out staying in the EU". But context is everything.
During that deeply polarized period in 2018, straying from the prepared script in this way was always going to be seen as issuing a challenge to the party leader, who sought to prioritize leave supporters in working-class seats above the Europhile sentiments of his party. In just one speech, this grey-suited shadow Brexit secretary underwent a transformation – albeit temporarily – into a risk-taker who would stand up for the party's base against a leader he later succeeded.
The Shift in Position & Closed Debates
In the years since, much has happened, especially for Starmer himself. An early move upon assuming leadership from Corbyn in 2020 was to declare the EU question had been settled by the previous year’s national vote. During the most recent campaign, he repeatedly emphasised unbreakable pledge promises that ruled out re-entry into the EU, the single market or a customs union.
Similar to Corbyn, the PM's approach has been to pursue pro-Leave voters in target constituencies, even if survey data suggests many of them have passed away or shifted opinion.
A Lid That Rattles on Europe
However, it’s now the prime minister’s turn to be an embattled Labour leader. And, if Europe may not be the central crisis in UK politics, a lid which was tightly sealed since Brexit is starting to loosen again.
Both Starmer and Rachel Reeves have intensified the rhetoric regarding the damage that leaving the EU has caused to the UK’s economy. It’s a useful stick to criticize the Reform UK leader, who now rarely mentions how leaving the EU was once his singular purpose and remains his sole political accomplishment.
Nevertheless, the scale of the damage, reportedly has resulted in a national economy that is between 6% and 8% smaller compared to EU membership, towers over the minor adjustments thus far implemented by ministers. The PM's much-touted re-set deal agreed with Brussels in 2024 offers economic benefits measured in fractions of a percent.
Cabinet Divergence and Bolder Ideas
Rachel Reeves is one of those trying to overcome long-standing interior ministry opposition to a broader scheme of a growth-enabling program for young people allowing youths can move between the UK and the EU to study or work.
David Lammy has pondered publicly regarding the “self-evident” benefits of being in an EU customs pact, as several Labour backbenchers, such as the head of the powerful finance committee, last week supported a Liberal Democrat motion on joining one.
While the Europe minister, the minister in charge of EU policy, who is now attending every cabinet meeting, maintains the firm boundaries remain unchanged, there are ways to work around them. One idea would be to declaring the commencement of talks immediately for a more ambitious agreement, for inclusion in the following election platform, to be enacted only after Labour won a new electoral mandate.
The Prime Minister's Fundamental Scepticism
However, Starmer has lately been pouring cold water on the idea cautioning that a return to a European customs area would “unravel” the commercial agreements with America, which he regards as signature achievements of his premiership.
It is understood that the PM’s scepticism run even deeper, stemming from several key concerns.
- First, he thinks any customs union agreement has been made significantly more difficult as ministers are actively diverging from European rules in numerous sectors, like environmental standards.
- Secondly, the prohibitive cost set for the UK for entry into the EU’s new defence fund and the ensuing failure in talks has convinced UK negotiators that former EU partners are less interested in offering favorable terms to the UK and are more focused on proving that Brexit does not work.
- Lastly, the new US national security strategy, which has been welcomed by Moscow, is viewed by key advisors in Number 10 as a reason for the UK to keep its distance from Europe.
A Bizarre Document & Geopolitical Calculations
This strange and concerning American strategy paper asserts Europe is threatened by cultural extinction due to immigration. It includes only one reference to Britain, found on a proposal that the US government may interfere in our politics to foster the rise of nationalist movements.
However, instead of deciding that this renders the US an unreliable partner, ministers reportedly fear that deeper EU integration would destabilise geopolitics further by endangering precarious American backing for Ukraine, Nato and much more besides.
Leadership Speculation & The Echo of 2018
All of which returns us to the conference of 2018. The PM has consistently stated that address was not a pitch to become leader but merely an effort to preserve the “option” of staying in the EU in a future vote. Indeed, back then, he still supported a tailored trade agreement of the kind he now appears to be opposing.
Observers within Downing Street note that Wes Streeting, who just about everyone assumes would be a candidate in any leadership election, is part of a group of senior ministers signaling they want to go further regarding the EU.
Aides to Angela Rayner, another likely contender in a contest for the top job, insist she refuses to comment on her position regarding a customs pact as it would merely “escalate unhelpful speculation”.
The Clear Danger & A Prudent Reminder
The risk is clear. Should the PM reject significant moves towards a close relationship, he allows rivals to occupy the space where the overwhelming majority of the party's supporters are to be found.
It would be wise of him to recall the effect just a few words had for him seven years ago. Potential pathways for a big offer on Europe that the prime minister should not “rule out”; he should explore them himself, before someone else makes them his – or her – own.