Starmer Signals New Path for UK-EU Economic Ties

Sir Keir Starmer is charting a fresh course for Britain's post-Brexit relationship with the European Union, signalling a move towards closer economic alignment with the single market, rather than rejoining the customs union. This notable shift aims to address persistent trade challenges while safeguarding the UK's new global trade agreements. The Labour leader's strategy focuses on building a "closer relationship" with the EU's single market. He believes this approach can effectively tackle the red tape hindering British exporters without dismantling the new trade deals the UK has secured with countries like the US and India, with more in the pipeline. Starmer has been clear that rejoining the customs union is not currently a priority. He views the recent global trade agreements as a success, and argues that a different path is needed to ease trade friction with Europe. Since the UK formally left the EU's single market and customs union in December 2020, businesses have grappled with new barriers. A recent survey by the British Chambers of Commerce revealed that a vast majority of its 989 business members felt the current UK-EU trade deal wasn't boosting sales. They've called for further measures to cut through post-Brexit bureaucracy. Indeed, Starmer's proposed "Brexit reset" already includes realigning with EU standards in key areas like food and farm exports, electricity, and emissions trading. This pragmatic, sector-by-sector approach could extend to manufacturing, automotive, chemicals, and even VAT arrangements, aiming to reduce friction where it hurts most. This evolving stance comes as European capitals previously expressed disappointment with the UK's ambition in earlier discussions. Geopolitical shifts are also playing a role; recent US policy statements, for instance, have highlighted a changing global landscape that influences the UK's European relations. Domestically, Labour faces pressure from other parties, including the Liberal Democrats and the Green Party, who are also advocating for different approaches to Brexit. As the tenth anniversary of the Brexit referendum approaches, Starmer's move appears to be a calculated response to a complex mix of economic realities, political pressures, and international dynamics. While specific details on areas like electricity and food standards are still being ironed out, and some initiatives like joining a European defence loan fund have stalled, agreements such as rejoining the Erasmus university exchange signal a willingness to engage. This latest shift marks a clear intent from Starmer to pursue a more integrated, albeit carefully defined, economic relationship with Europe. --- Managing your business finances? TaxAce provides smart online accountancy services for UK businesses with flexible monthly plans. Image and reporting: https://www.bbc.co.uk | Read original article