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A Caution for Keir Starmer drawn from His Own Past: Without Boldness on Britain's EU Exit & the EU, Your Labour Rivals Shall Be.

Seven years ago, a mere eight words to ignite the party's annual gathering and to show Labour was becoming disillusioned with its then leader. Although not exactly soaring oratory, the words met with wild cheering as delegates stood for spontaneous acclamation.

When the noise subsided, the then-Brexit spokesman, stood at the podium, visibly startled. He was unaccustomed to his addresses producing such a reaction. All he had said was: "We are not excluding remain as an option". But context is everything.

In that darkly divisive time of 2018, straying from his agreed text like this was inevitably viewed as issuing a challenge to the party leader, who was trying to prioritise leave supporters in working-class seats above the pro-European instincts of his party. In just one speech, this seemingly cautious shadow Brexit secretary was transformed – if only for a while – into a political gambler who would stand up for most Labour MPs, members and voters against a leader he would later replace.

The Shift in Position & Settled Debates

Since then, much has happened, not least to Starmer himself. An early move upon assuming leadership in 2020 was to declare the Brexit issue was resolved by the previous year’s general election. And, at the last one, he repeatedly emphasised manifesto “red line” commitments that forbade re-entry into the EU, the single market or a customs union.

Like his predecessor, the PM's approach has been to pursue pro-Leave voters in key seats, even if polling evidence suggests many of them have died or changed their minds.

A Lid That Rattles on Europe

However, the tables have turned and the prime minister’s turn to be an embattled party leader. And, if Europe may not be the central crisis in UK politics, the cap which was tightly sealed for five years is starting to loosen once more.

Both Starmer and Rachel Reeves have ramped up their language about the devastation caused by Brexit has inflicted on the UK’s economy. It’s a useful stick to criticize Nigel Farage, who seldom discusses how leaving the EU was once his singular purpose and is still his sole political accomplishment.

Nevertheless, the extent of the economic harm, reportedly has resulted in an economy that is between 6% and 8% smaller compared to EU membership, dwarfs the minor adjustments so far offered by ministers. Starmer’s so-called relationship reset agreed with Brussels in 2024 provides gains measured in fractions of a percent.

Internal Pressure & Ambitious Proposals

Rachel Reeves is among those attempting to bypass long-standing Home Office resistance to a broader scheme designed to boost growth youth mobility scheme allowing youths can move between the UK and the EU for work or study.

David Lammy muses openly regarding the clear advantages of joining a customs union with the EU, while a dozen Labour MPs, including the chair of the powerful finance committee, recently supported an opposition proposal on joining one.

Although Nick Thomas-Symonds, the minister in charge of EU policy, now present at all cabinet sessions, insists the firm boundaries remain unchanged, there are ways to work around them. 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 fresh mandate.

Starmer's Fundamental Scepticism

However, Starmer has most recently damping it all down again by warning rejoining a European customs area could undermine the commercial agreements with the US, which he regards as key accomplishments of his government.

Reportedly that the PM’s scepticism run even deeper, and is rooted in several key concerns.

  1. First, he believes any customs union agreement is now much harder because his ministers busily de-aligning from EU regulations across a range of sectors, like environmental standards.
  2. Second, the prohibitive cost demanded from Britain to join a European defense initiative and the subsequent collapse in talks has led British officials that former EU partners are less interested in cutting special deals to the UK than in demonstrating that Brexit does not work.
  3. Lastly, America's latest security doctrine, praised by Moscow, is seen by some influential figures in Number 10 as a reason for the UK to keep its distance from Europe.

An Alarming Document & Strategic Considerations

This strange and concerning American strategy paper asserts Europe faces “civilizational erasure” because of immigration. It contains a single mention to Britain, placed beside a proposal that the US government will intervene in British politics to encourage the growth of “patriotic” parties.

However, instead of concluding that this makes America an unreliable partner, ministers is worried that deeper EU integration would destabilise geopolitics further by risking precarious American backing for Kyiv, NATO, and other alliances.

Succession Chatter & The Ghost of 2018

This situation returns us to the conference of 2018. Starmer has always said that address was not an attempt for the leadership but merely an attempt to keep open the possibility of staying in the EU being on the ballot paper. In fact, back then, he still supported a tailored trade agreement of the kind he now appears to be opposing.

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 want to go further on Europe.

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

The Obvious Danger & A Wise Memory

The risk is clear. Should the PM reject more meaningful steps towards a close relationship, he cedes ground to occupy the space where the overwhelming majority of the party's supporters are to be found.

It would be prudent of him to remember the impact that a short phrase had on his career in 2018. Potential pathways for a big offer on EU relations which the PM ought to consider; he should explore them personally, rather than letting rivals adopt them as their own.

Written by

Kim Lopez

A seasoned financial analyst with over 15 years of experience in precious metals markets and investment strategies.

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