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An Warning to Keir Starmer drawn from His Personal History: Without Boldness regarding Brexit & the EU, Your Labour Rivals Shall Be.

Back in 2018, a mere a short phrase to energize a Labour conference and to show Labour was becoming disillusioned with its then leader. Although not precisely stirring rhetoric, the phrase were greeted 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 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 darkly divisive time in 2018, straying from the prepared script like this was always going to be seen as issuing a challenge to the party leader, who sought to prioritize leave supporters in working-class seats above the pro-European instincts of his party. In just one speech, this seemingly cautious shadow Brexit secretary underwent a transformation – albeit temporarily – into a political gambler who would stand up for the party's base against a leader he later succeeded.

The Evolution of Stance and Closed Debates

Since then, the landscape has shifted, not least to Starmer himself. An early move after taking over in 2020 was declaring the Brexit issue was resolved by the 2019 general election. And, at the last one, he repeatedly emphasised manifesto “red line” commitments that forbade rejoining the European Union or its core structures.

Like his predecessor, his strategy has been to pursue Brexit-y voters in target constituencies, even if polling evidence suggests many of them have passed away or shifted opinion.

A Lid That Rattles on the EU

Yet, the tables have turned and Starmer is now to be an embattled party leader. And, if Europe is no longer the central crisis of British politics, the cap that has been kept tightly sealed for five years is beginning to rattle once more.

The Prime Minister and Chancellor have ramped up their language about the devastation caused by Brexit has inflicted on Britain's economic standing. It’s a useful stick to criticize the Reform UK leader, who seldom discusses his flagship policy was his primary goal and remains his only real achievement.

And yet, the extent of the economic harm, which by some estimates has resulted in a national economy that is significantly diminished compared to EU membership, towers over the micro-mitigation thus far implemented by the government. Starmer’s so-called relationship reset negotiated with the EU in 2024 offers economic benefits quantified in low decimal points.

Cabinet Divergence and Bolder Ideas

The chancellor is one of those trying to overcome entrenched Home Office resistance to an expansive version designed to boost growth program for young people by which young people can travel between the UK and the EU for work or study.

The deputy prime minister has pondered publicly about the clear advantages of joining a customs union with the EU, while a dozen Labour MPs, such as the head of the powerful finance committee, last week voted for a Liberal Democrat motion on customs union membership.

While the Europe minister, the minister in charge of UK-EU relations, who is now attending all cabinet sessions, insists the firm boundaries remain unchanged, there exist avenues these could be bypassed. One idea would be to declaring the commencement of talks immediately for a more ambitious agreement, to be featured in the next manifesto, with implementation only if securing a fresh mandate.

The Prime Minister's Fundamental Scepticism

Yet, Starmer has lately been pouring cold water again by warning rejoining a European customs area would “unravel” the trade pacts with the US, which he views as signature achievements of his government.

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

  1. Firstly, he thinks a customs pact is now much harder because his ministers actively diverging from EU regulations in numerous sectors, like environmental standards.
  2. Secondly, the prohibitive cost demanded from Britain for entry into the EU’s new defence fund and the ensuing failure of negotiations has convinced British officials that former EU partners have little interest in offering favorable terms to the UK than in demonstrating that Brexit does not work.
  3. Lastly, America's latest security doctrine, which has been welcomed by the Kremlin, is viewed by some influential figures in Downing Street as a reason for the UK to maintain distance from Europe.

An Alarming Strategy and Strategic Calculations

This strange and concerning American strategy paper asserts Europe faces cultural extinction because of Muslim migration. It includes a single mention to Britain, found on a proposal that Donald Trump’s administration may interfere in our politics to foster the growth of nationalist movements.

But, far from concluding that this makes America an unreliable partner, the government is worried that deeper EU integration could upset the global balance by risking precarious American backing for Kyiv, NATO, and other alliances.

Succession Chatter & The Ghost from the Past

This situation returns us to the conference of 2018. Starmer has always said that address was not an attempt to become leader but simply an effort to preserve the “option” of remain being on the ballot paper. In fact, back then, Starmer still favoured a tailored trade agreement similar to the one he currently seems to reject.

Observers within the Prime Minister's office note that Wes Streeting, widely considered would stand in any leadership election, is among a group of senior ministers letting it be known they desire greater ambition regarding the EU.

Aides to the Deputy Prime Minister, another probable runner in a contest for the top job, maintain she won’t discuss her stance on a customs union because it would only “escalate unhelpful speculation”.

The Clear Danger and A Wise Reminder

The danger is obvious. 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 wise for Starmer to recall the effect that a short phrase had on his career in 2018. There are options for a major proposal on Europe that the prime minister should not “rule out”; he should explore them himself, rather than letting rivals makes them his – or her – own.

Written by

Adrian Reynolds

A fintech strategist with over a decade of experience in digital payments and blockchain technology, passionate about driving financial inclusion.

Modern Cards Group

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