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Sunday 02 February 2025 2:07 pm

Brexit is ‘settled’, Sir Keir Starmer says amid calls for customs deal with EU

By: City PM reporter

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The PM has beefed up his economics team at Number Ten
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Prime Minister Sir Keir Starmer has rejected suggestions the UK will rejoin the EU, saying the decision is “settled” as he faces calls to broker a customs union with the bloc.

The Prime Minister will meet European Council leaders on Monday as he continues efforts to “reset” Britain’s relationship with the trade bloc.

The focus of the meeting is expected to be defence co-operation, but the Lib Dems have called for Sir Keir to begin talks with the EU which could pave the way for a customs union with the bloc.

While the Prime Minister insisted he would not pursue these talks, he said he hoped bloc had seen a “manifest difference” in relations since he took up office.

Speaking during the visit of German Chancellor Olaf Scholz to the Chequers estate in Buckinghamshire, Sir Keir told members of the gathered media: “I’ve been very clear since I became Prime Minister that I do want a reset of the relationship between the UK and the EU.

“That does not involve a return to the European Union – we had a referendum here on that, and that matter is settled.

“But I do want to see a closer relationship on defence and security, on energy, on trade and our economy, and that is what we’re working on.

“I think that is certainly in the UK’s best interest, I do believe it’s in the EU’s best interest, and already I hope that in the last seven months there’s been a manifest difference in approach, tone and relationship.”

Home Secretary Yvette Cooper had earlier said re-joining the customs union or the single market remain “red lines” for the Government as it negotiates with the EU.

She also said the UK wanted “stronger trading relationships” with the US, as Donald Trump moves to impose tariffs on its nearest trading partners.

Shadow business secretary Andrew Griffith told Sky News the UK needed to be prioritising the US over Europe.

“We have a trade deal with the European Union already, so, alongside that, a trade deal with the US would be a big win,” the senior Tory said.

Mr Griffith added the UK’s big opportunity “lies in Washington, with the US, our single largest trading partner”, and claimed “the Prime Minister should be rediverting his plane tomorrow”.

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The Tory frontbencher’s boss, Kemi Badenoch, has meanwhile set five “tests” for the Prime Minister as he meets with European leaders.

Failing to meet the tests will suggest the Prime Minister is attempting to “undo” Brexit, the Conservative leader said.

They include a commitment to no “backsliding” on free movement or the compulsory transfer of asylum seekers; no new money paid to the EU; and no reduction in fishing rights.

The Tories also want Sir Keir to commit to not take any rules from the EU as he engages with the bloc, including dynamic alignment on trade standards, or allowing the European courts to have jurisdiction over UK law.

Nato must have “primacy” when it comes to European security, the Tory leader said in her final test for the PM.

Ahead of Sir Keir’s visit, Liberal Democrat leader Sir Ed Davey said the Prime Minister should “open negotiations” for a customs union with the EU.

“My challenge to Keir Starmer today is to go to Brussels tomorrow and open negotiations for an EU-UK customs union,” he told the BBC’s Sunday With Laura Kuenssberg.

The path towards a deal could start with the UK joining the Pan-Euro-Mediterranean (PEM) Convention, an agreement which allows for tariff-free movement of some goods across the continent, Sir Ed said.

But he suggested a full EU-UK customs union could be reached “at the latest by 2030”.

Sir Ed has has written to Chancellor Rachel Reeves, calling on her to commission the Office for Budget Responsibility to assess the impact of a new customs union with the EU on the UK economy, according to the BBC.

Opening talks on a customs union could “turbo-charge” the EU-UK relationship, Sir Ed added.

By David Lynch, Will Durrant, Harry Stedman. and Sam Hall, PA

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Beware a desperate Prime Minister in search of a legacy

Keir Starmer speaking at London Tech Week conference, discussing innovation and technology advancements in the UK.

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