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An Warning to Keir Starmer from His Personal History: Without Boldness on Britain's EU Exit and Europe, His Labour Rivals Might Be.

Seven years ago, it took just eight words to ignite a Labour conference demonstrating the party was falling out of love with its then leader. Although not precisely soaring oratory, the words were greeted with rapturous applause as delegates rose in an impromptu ovation.

As the commotion died down, the then-Brexit spokesman, stood at the podium, blinking in surprise. He was unaccustomed to his speeches having such an effect. His statement was simply: "We are not excluding staying in the EU". But context is everything.

In that deeply polarized period in 2018, departing from the prepared script like this was inevitably viewed as laying down the gauntlet to the party leader, who was trying to prioritise leave supporters in working-class seats above the Europhile sentiments within Labour. With that single address, this grey-suited opposition Brexit spokesman underwent a transformation – if only for a while – into a political gambler who championed most Labour MPs, members and voters against a leader he later succeeded.

The Evolution in Position and Settled Debates

Since then, much has happened, not least to Starmer himself. An early move after taking over from Corbyn in 2020 was declaring the Brexit issue was resolved by the previous year’s general election. During the most recent campaign, he repeatedly emphasised manifesto “red line” promises that ruled out re-entry into the EU, the single market or a customs union.

Like his predecessor, his strategy has focused on winning Brexit-y voters in key seats, despite survey data indicates many of them have passed away or shifted opinion.

Pressure Building on Europe

However, the tables have turned and Starmer is now to face the pressures of being a Labour leader. While Europe may not be the central crisis in UK politics, the cap that has been kept tightly sealed for five years is beginning to rattle again.

Both Starmer and Rachel Reeves have intensified the rhetoric about the devastation that leaving the EU has caused to Britain's economic standing. It’s a useful stick with which to beat the Reform UK leader, who seldom discusses how leaving the EU was his primary goal and remains his sole political accomplishment.

And yet, the extent of the economic harm, which by some estimates has resulted in an economy that is significantly diminished than if it were still in the EU, dwarfs the micro-mitigation thus far implemented by ministers. Starmer’s so-called relationship reset negotiated with the EU in 2024 provides gains measured in fractions of a percent.

Cabinet Divergence and Ambitious Proposals

The chancellor is one of those attempting to bypass long-standing Home Office resistance to an expansive version of a growth-enabling program for young people allowing youths can move between the UK and the EU for work or study.

David Lammy has pondered publicly regarding the “self-evident” benefits of joining an EU customs pact, as several Labour backbenchers, such as the head of the powerful finance committee, recently voted for an opposition proposal on joining one.

While the Europe minister, who oversees EU policy, who is now attending all cabinet sessions, maintains the firm boundaries are still in place, there exist avenues these could be bypassed. One idea involves declaring the commencement of talks immediately on a much bolder deal, to be featured in the following election platform, to be enacted only after securing 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 trade pacts with the US, which he regards as signature achievements of his premiership.

Reportedly that the PM’s scepticism go still deeper, stemming from several key concerns.

  1. Firstly, he thinks any customs union agreement is now much harder as ministers are actively diverging from European rules across a range of policy areas, like environmental standards.
  2. Second, the prohibitive cost set for the UK to join a European defense initiative and the subsequent collapse of negotiations has convinced British officials that European nations have little interest in cutting special deals to the UK and are more focused on proving that leaving the EU was a mistake.
  3. Lastly, America's latest security doctrine, praised by the Kremlin, is viewed by key advisors in Number 10 as grounds for the UK to maintain distance from the EU.

A Bizarre Strategy and Strategic Calculations

This bizarre and terrifying American strategy paper asserts Europe is threatened by cultural extinction due to immigration. It includes a single mention of the UK, placed beside a suggestion that the US government will intervene in our politics to encourage the rise of “patriotic” parties.

But, far from concluding that this makes the US an undependable ally, ministers reportedly fear that aligning closer with Europe would destabilise geopolitics further by risking fragile US military support for Ukraine, Nato and much more besides.

Succession Chatter and The Ghost of 2018

All of which returns us to 2018. The PM has consistently stated his speech 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, Starmer still favoured a “bespoke customs union deal” similar to the one he currently seems to reject.

But it’s not been lost on the Prime Minister's office note that Wes Streeting, widely considered would be a candidate for the leadership, is part of a clutch of senior ministers signaling they desire greater ambition regarding the EU.

Aides to the Deputy Prime Minister, another likely contender in a contest for the top job, maintain she won’t discuss her position regarding a customs pact because it would only “fuel unnecessary gossip”.

The Clear Danger & A Prudent Memory

The danger is obvious. Should the PM reject significant moves towards EU alignment, he cedes ground to claim the territory where the overwhelming majority of the party's supporters reside.

It would be prudent for Starmer to recall the effect just a few words had on his career seven years ago. There are options for a major proposal on EU relations which the PM ought to consider; he should prise them open himself, before someone else adopt them as their own.

The writer

James Hawkins

Erik Lundqvist is a seasoned financial analyst with over 15 years of experience in market research and portfolio management.

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