An Caution to Keir Starmer drawn from His Own Past: If You're Not Bold on Britain's EU Exit & the EU, His Party Challengers Might Be.

Back in 2018, a mere a short phrase to electrify the party's annual gathering demonstrating Labour was becoming disillusioned with Jeremy Corbyn. While not precisely stirring rhetoric, the words were greeted with wild cheering as delegates rose in an impromptu ovation.

As the commotion died down, Keir Starmer, stood at the podium, blinking in surprise. He wasn't really accustomed to his addresses 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, departing from the prepared script 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. With that single address, this grey-suited opposition Brexit spokesman underwent a transformation – albeit temporarily – into a risk-taker who championed most Labour MPs, members and voters against the leadership he later succeeded.

The Evolution of Stance & Settled Debates

Since then, the landscape has shifted, not least to Starmer himself. An early move after taking over from Corbyn in 2020 was to declare the EU question had been settled by the previous year’s national vote. During the most recent campaign, he repeatedly emphasised unbreakable pledge promises that forbade re-entry into the European Union or its core structures.

Like his predecessor, his strategy has been to pursue Brexit-y voters in key seats, despite survey data 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 face the pressures of being a party leader. And, if EU relations may not be the central crisis in UK politics, a lid which was firmly shut for five years is beginning to rattle once more.

Both Starmer and Rachel Reeves have intensified their language about the devastation that leaving the EU has inflicted on the UK’s economy. It’s a useful stick to criticize the Reform UK leader, who now rarely mentions how leaving the EU was once his singular purpose and is still his sole political accomplishment.

And yet, the scale of the damage, reportedly has left Britain with a national economy that is between 6% and 8% smaller than if it were still in the EU, towers over the micro-mitigation so far offered by ministers. Starmer’s so-called re-set deal negotiated with the EU in 2024 offers economic benefits quantified in fractions of a percent.

Cabinet Divergence and Bolder Ideas

Rachel Reeves is among those attempting to bypass long-standing Home Office resistance to an expansive version of a growth-enabling program for young people allowing young people can travel between Britain and Europe for work or study.

David Lammy muses openly about the clear advantages of being in a customs union with the EU, while a dozen Labour MPs, 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, now present at all cabinet sessions, maintains the firm boundaries are still in place, there are ways these could be bypassed. A proposal involves declaring the commencement of negotiations now for a more ambitious agreement, for inclusion in the next manifesto, to be enacted only after securing a fresh mandate.

The Prime Minister's Fundamental Doubts

However, Starmer has most recently pouring cold water again by warning a return to a European customs area could undermine the trade pacts with America, which he regards as key accomplishments of his government.

It is understood that Starmer's doubts go still deeper, and is rooted in three further factors.

  1. First, he believes a customs pact is now much harder because his ministers actively diverging from European rules across a range of policy areas, including the environment.
  2. Second, the exorbitant price demanded from Britain to join a European defense initiative and the ensuing failure of negotiations has led British officials that European nations have little interest in offering favorable terms with Britain than in demonstrating that leaving the EU was a mistake.
  3. Lastly, America's latest security doctrine, praised by the Kremlin, is seen by some influential figures in Downing Street as a reason for Britain to keep its distance from the EU.

An Alarming Strategy & Geopolitical Considerations

This strange and concerning American strategy paper claims Europe is threatened by “civilizational erasure” due to Muslim migration. It contains only one reference of the UK, placed beside a proposal that Donald Trump’s administration will intervene in our politics to encourage the rise of “patriotic” parties.

However, instead of concluding that this makes the US an unreliable partner, ministers reportedly fear that deeper EU integration would destabilise geopolitics further by endangering fragile US military support for Ukraine, Nato and much more besides.

Leadership Speculation and The Echo from the Past

This situation brings us back to 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 being on the ballot paper. In fact, in those days, Starmer still favoured a “bespoke customs union deal” of the kind he now appears to be opposing.

But it’s not been lost on the Prime Minister's office note that the Health Secretary, who just about everyone assumes would be a candidate for the leadership, is part of a clutch of senior ministers letting it be known they desire greater ambition on Europe.

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

The Obvious Risk and A Wise Reminder

The danger is obvious. Should the PM reject more meaningful steps towards a close relationship, he allows rivals to claim the territory where most of the party's supporters reside.

It would be wise for Starmer to remember the effect just a few words had for him in 2018. Potential pathways for a big offer on EU relations that the prime minister should not “rule out”; he should explore them personally, rather than letting rivals adopt them as their own.

Timothy Best
Timothy Best

A financial analyst specializing in precious metals with over a decade of experience in UK markets, providing actionable investment advice.

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