Labour needs to end its “cycle of hesitation” over Europe and press ahead with an ambitious new relationship with the European Union, the party’s former leader Neil Kinnock has said.
Keir Starmer will head to a Brussels dinner with EU leaders this week as he attempts to negotiate a security and defence pact with the bloc. It is the first summit of its type to be attended by a British prime minister since Brexit.
Both the prime minister and his chancellor Rachel Reeves have been talking up a “reset” with the EU as part of their desperate search for economic growth. However, concerns in Downing Street about being seen to be compromising Brexit mean that the government has so far resisted committing to schemes such as greater mobility for young Europeans.
It has led to frustration among some Labour figures, who believe the public is now more willing to countenance a closer relationship with Europe than Downing Street is willing to consider. Starmer has been clear that his red lines remain staying out of the single market, customs union and free movement rules.
Kinnock said it was now time for the government to show a greater willingness to work with the EU. “The government talks about resetting relations with Europe and that is encouraging,” he said.
“But we await the action that would give meaning to the words. There’s a real opportunity to rebuild trust and secure practical agreements on trade, security, youth mobility and regulatory cooperation and alignment – but instead, we seem to be stuck in a cycle of hesitation.
“I wonder at the references to ‘red lines’ before negotiations have started. In any serious negotiation, nothing that could produce mutual advantage should be ruled out in advance. The public wants progress, businesses need certainty. Everyone needs the potential for growth and investment, and Europe is waiting.”
There is also increasing pressure from the Liberal Democrats, who have been shifting towards a more openly pro-EU stance. The party is now calling for a bespoke customs union with the EU, comparing it to a deal currently in place with Turkey.
Ed Davey, the Lib Dem leader, has written to Reeves, calling on her to order the Office for Budget Responsibility (OBR) to examine the economic benefits of such a deal.
In his letter, he said that voters and businesses deserved “full transparency about the benefits that a closer trading relationship with Europe would bring.” He added: “The chancellor is tying herself in knots trying to think up new ways to grow our economy, but there’s a solution right under her nose.
“It’s a no-brainer. After years of damage thanks to the Conservatives’ botched trade deal with the EU, this would improve access to our biggest trading partner and put rocket boosters under economic growth.”
He said updated forecasts on the impact of a customs union deal should be published alongside the OBR’s assessment that will appear alongside the chancellor’s spring statement in March. He said Starmer should start discussing the option in Monday’s meeting. The OBR has previously assumed the UK economy would take a 4% hit over 15 years due to the impact of Brexit.
after newsletter promotion
However, with Labour strategists worried about the impact of Reform UK and the Conservative leader, Kemi Badenoch, already accusing them of planning to “give away our hard-won Brexit freedoms”, they remain cautious. EU leaders are likely to demand a series of concessions over fishing, EU standards and the youth mobility scheme before backing a significant change to the bloc’s relationship with Britain.
Dominic Grieve, the former Tory attorney general, said talk of a reset lacked the “vision and boldness” needed to make it effective. “It risks being little more than tinkering at the edges,” he said.
“Opportunities are there for the taking. The ball is in our court, but so far, the government’s piecemeal sectoral approach falls short. The evidence is clear: without addressing barriers to trade, and without a serious conversation about the customs union and single market, its growth ambitions will remain unfulfilled.
A Treasury spokesperson said: “We are committed to resetting our relationship with our European partners – our nearest and largest trading partners – to drive growth and support business, while working together for peace, security, and prosperity across the continent.”
Source link