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An Warning to Keir Starmer from His Personal Past: Without Boldness on Brexit & the EU, Your Labour Rivals Will Be.

Seven years ago, it took just a short phrase to ignite a Labour conference demonstrating the party was becoming disillusioned with Jeremy Corbyn. Although not precisely stirring rhetoric, the phrase met with wild cheering as most of the hall stood for an impromptu ovation.

When the noise subsided, Keir Starmer, remained at the lectern, visibly startled. He wasn't really accustomed to his speeches producing such a reaction. All he had said was: "We are not excluding remain as an option". Context, however, is key.

In that darkly divisive time in 2018, straying from his agreed text like this was always going to be seen as issuing a challenge to the party leader, who was trying to prioritise leave supporters in working-class seats above the Europhile sentiments of his party. In just one speech, this seemingly cautious opposition Brexit spokesman underwent a transformation – if only for a while – into a risk-taker who championed the party's base against the leadership he later succeeded.

The Shift of Stance & Closed Debates

In the years since, much has happened, not least to Starmer himself. One of his first acts upon assuming leadership from Corbyn in 2020 was declaring the EU question had been settled by the 2019 national vote. During the most recent campaign, he repeatedly emphasised manifesto “red line” commitments that ruled out re-entry into the European Union or its core structures.

Similar to Corbyn, his strategy has been to pursue Brexit-y voters in key seats, despite polling evidence suggests a significant number have passed away or shifted opinion.

A Lid That Rattles on the EU

Yet, it’s now Starmer is now to be an embattled party leader. While Europe may not be the central crisis in UK politics, the cap which was tightly sealed since Brexit is starting to loosen again.

The Prime Minister and Chancellor have intensified the rhetoric regarding the damage that leaving the EU has caused to the UK’s economy. It’s a useful stick with which to beat the Reform UK leader, who now rarely mentions his flagship policy was his primary goal and is still his sole political accomplishment.

And yet, the scale of the damage, which by some estimates has left Britain with a national economy that is significantly diminished compared to EU membership, towers over the micro-mitigation thus far implemented by ministers. The PM's much-touted re-set deal negotiated with the EU in 2024 offers economic benefits quantified in fractions of a percent.

Cabinet Divergence and Ambitious Proposals

The chancellor is among those attempting to bypass entrenched interior ministry opposition to an expansive version of a growth-enabling youth mobility scheme allowing young people can move between the UK and the EU for work or study.

The deputy prime minister muses openly about the “self-evident” benefits of joining an EU customs pact, while a dozen Labour MPs, including the chair of the powerful finance committee, last week supported an opposition proposal on joining one.

While Nick Thomas-Symonds, who oversees EU policy, now present at every cabinet meeting, maintains the firm boundaries are still in place, there are ways to work around them. A proposal would be to announce the start of negotiations now on a much bolder deal, for inclusion in the next manifesto, to be enacted only after Labour won a new electoral mandate.

The Prime Minister's Fundamental Scepticism

Yet, Starmer has most recently damping it all down again cautioning that a return to a European customs area could undermine the trade pacts with the US, which he regards as signature achievements of his premiership.

It is understood that Starmer's doubts go still deeper, and is rooted in several key concerns.

  1. Firstly, he believes any customs union agreement is now significantly more difficult as ministers are busily de-aligning from EU regulations in numerous policy areas, like environmental standards.
  2. Second, the exorbitant price set for the UK for entry into the EU’s new defence fund and the subsequent collapse of negotiations has convinced British officials that former EU partners are less interested in offering favorable terms with Britain than in demonstrating that Brexit does not work.
  3. Lastly, the new US national security strategy, which has been welcomed by the Kremlin, is seen by some influential figures in Downing Street as grounds for the UK to keep its distance from the EU.

An Alarming Strategy & Strategic Considerations

This bizarre and terrifying American strategy paper asserts Europe faces cultural extinction because of immigration. It includes only one reference of the UK, placed beside a suggestion that Donald Trump’s administration will intervene in our politics to encourage the rise of “patriotic” parties.

But, far from deciding that this renders the US an unreliable partner, ministers reportedly fear that aligning closer with Europe would destabilise geopolitics further by risking fragile US military support for Kyiv, NATO, and other alliances.

Leadership Speculation and The Echo of 2018

This situation returns us to 2018. Starmer has always said his speech was not an attempt for the leadership but simply an attempt to preserve the “option” of remain in a future vote. Indeed, in those days, 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 have noticed that the Health Secretary, who just about everyone assumes would be a candidate in any leadership election, is part of a group of senior ministers signaling they desire greater ambition on Europe.

Staff for Angela Rayner, another likely contender in a future race to replace Starmer, insist she won’t discuss her position regarding a customs pact as it would merely “fuel unnecessary gossip”.

The Obvious Danger & A Wise Reminder

The risk is clear. If Starmer rules out significant moves towards a close relationship, he cedes ground to claim the territory where the overwhelming majority of Labour MPs, members and voters reside.

It would be prudent of him to remember the impact just a few words had for him in 2018. Potential pathways for a big offer on Europe that the prime minister should not “rule out”; he should explore them himself, rather than letting rivals adopt them as their own.

MF
Written by

Matthew Flores

James Whitfield is a market analyst with 15 years of experience in UK market research and strategy.

Market Solutions UK

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