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An Alert for Keir Starmer drawn from His Personal Past: If You're Not Bold regarding Brexit and the EU, Your Party Challengers Will Be.

Back in 2018, a mere eight words to electrify the party's annual gathering demonstrating the party was falling out of love with Jeremy Corbyn. Although not exactly stirring rhetoric, the words were greeted with wild cheering as most of the hall stood for spontaneous acclamation.

As the commotion died down, the then-Brexit spokesman, remained at the lectern, visibly startled. He was unaccustomed to his addresses having such an effect. All he had said was: "Nobody is ruling out remain as an option". Context, however, is key.

In that deeply polarized period of 2018, straying from the prepared script in this way was always going to be seen as laying down the gauntlet to Jeremy Corbyn, who was trying to prioritise Brexit voters in working-class seats above the pro-European instincts within Labour. In just one speech, this grey-suited shadow Brexit secretary was transformed – albeit temporarily – into a political gambler who would stand up for the party's base against the leadership he would later replace.

The Shift in Position and Settled Issues

In the years since, much has happened, not least to Starmer himself. An early move upon assuming leadership from Corbyn in 2020 was to declare the EU question was resolved by the previous year’s national vote. During the most recent campaign, he consistently stressed unbreakable pledge commitments that forbade rejoining the European Union or its core structures.

Like his predecessor, his strategy has been to pursue pro-Leave voters in target constituencies, despite survey data indicates a significant number have died or changed their minds.

A Lid That Rattles on Europe

Yet, the tables have turned and the prime minister’s turn to face the pressures of being a party leader. While Europe may not be the central crisis in UK politics, the cap that has been kept firmly shut since Brexit is starting to loosen once more.

The Prime Minister and Chancellor have intensified the rhetoric regarding the damage caused by Brexit has inflicted on Britain's economic standing. This serves as an effective tool with which to beat the Reform UK leader, who seldom discusses his flagship policy was once his singular purpose and is still his sole political accomplishment.

And yet, the extent of the economic harm, which by some estimates has left Britain with an economy that is between 6% and 8% smaller than if it were still in the EU, dwarfs the minor adjustments thus far implemented by the government. Starmer’s so-called relationship reset negotiated with the EU in 2024 provides gains measured in low decimal points.

Internal Pressure and Bolder Ideas

The chancellor is among those trying to overcome entrenched Home Office resistance to an expansive version of a growth-enabling youth mobility scheme by which young people can travel between the UK and the EU for work or study.

David Lammy muses openly regarding the “self-evident” benefits of joining an EU customs pact, as several Labour backbenchers, including the chair of the powerful finance committee, recently supported a Liberal Democrat motion on customs union membership.

Although the Europe minister, who oversees EU policy, who is now attending every cabinet meeting, insists the firm boundaries are still in place, there exist avenues these could be bypassed. One idea involves announce the start of talks immediately on a much bolder deal, to be featured in the next manifesto, with implementation only if securing a new electoral mandate.

The Prime Minister's Fundamental Doubts

Yet, Starmer has lately been damping it all down on the idea cautioning that a return to a European customs area could undermine the trade pacts with America, which he regards as signature achievements of his premiership.

Reportedly that Starmer's doubts run even deeper, stemming from several key concerns.

  1. Firstly, he thinks a customs pact is now significantly more difficult as ministers are actively diverging from European rules in numerous sectors, including the environment.
  2. Secondly, the exorbitant price set for the UK for entry into a European defense initiative and the ensuing failure of negotiations has convinced British officials that European nations are less interested in offering favorable terms to the UK than in proving that leaving the EU was a mistake.
  3. Thirdly, America's latest security doctrine, which has been welcomed by the Kremlin, is seen by key advisors in Number 10 as grounds for the UK to keep its distance from the EU.

A Bizarre Document & Strategic Calculations

This bizarre and terrifying American strategy paper claims Europe is threatened by cultural extinction due to immigration. It contains a single mention of the UK, found on a proposal that the US government may interfere in British politics to foster the growth of nationalist movements.

However, instead of deciding that this renders America an unreliable partner, ministers is worried that aligning closer with Europe could upset the global balance by endangering fragile US military support for Ukraine, Nato and much more besides.

Leadership Speculation & The Echo of 2018

All of which brings us back to the conference of 2018. The PM has consistently stated his speech was not a pitch for the leadership but simply an effort to preserve the possibility of remain in a future vote. Indeed, back then, he still supported a tailored trade agreement of the kind he currently seems to reject.

Observers within Downing Street have noticed that the Health Secretary, who just about everyone assumes would stand in any leadership election, is among a group of senior ministers signaling they desire greater ambition regarding the EU.

Aides to the Deputy Prime Minister, another likely contender in a future race for the top job, maintain she refuses to comment on her position regarding a customs pact because it would only “fuel unnecessary gossip”.

The Clear Danger & A Prudent Memory

The risk is clear. If Starmer rules out more meaningful steps towards a close relationship, he cedes ground to occupy the space where most of the party's supporters are to be found.

It would be prudent for Starmer to remember the effect that a short phrase had for him seven years ago. Potential pathways for a major proposal on Europe which the PM should not “rule out”; he should explore them himself, before someone else makes them his – or her – own.

By

Andrew Evans

A seasoned market analyst with over a decade of experience in global business strategy and economic forecasting.

CoreMarket Insights

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