19-05-2025
Labour's Europe deal is a trap for Brexiteers
Photo byThe Europe question is never settled; it just re-emerges in a new form. Labour knows this better than most parties. In 1975, under Harold Wilson, it held a referendum to resolve the UK's European Economic Community membership. Eight years later, it advocated withdrawal without a vote at all. By 1988, as British trade unionists sang 'Frère Jacques' in tribute to President Delors of the European Commission, Labour had embraced Europe as a bulwark against Thatcherism.
Keir Starmer's own career mirrors these convulsions. He was a pro-European of the Delors age – embracing the project as a vehicle to advance human rights and social legislation. In 2018, with the unscripted declaration that 'nobody is ruling out Remain as an option', he established himself as a leader-in-waiting. Yet two years later, in an act of ruthless pragmatism, Starmer whipped Labour MPs to vote for Boris Johnson's deal.
Then, as before, some insisted that the Europe question had been resolved. But this was never likely to prove the case for long. In spite of Johnson's 2019 landslide victory, Brexit soon became a moribund cause. The political and economic winds driving integration have only grown stronger. When Kemi Badenoch spoke in the House of Commons of our 'hard-won Brexit freedoms', she was met with laughter from across the Labour benches – a reflection of the disrepute into which the project has fallen.
Leavers used to take pride in asserting that the elites were on the wrong side of the people, but they now find this charge thrown back at them. Just 30 per cent of voters now believe the UK was right to leave the EU and only 11 per cent believe the project has been a success. Sixty-four per cent favour a closer relationship with Europe, while 55 per cent are outright Rejoiners. Here is why No 10 does not fear the cries of 'Brexit betrayal' from recalcitrant Leavers. For many voters, Labour's 'reset' is still too hard rather than too soft.
The deal agreed this morning includes a new defence and security partnership (with UK firms to gain access to a £150bn EU rearmament fund), a reduction in checks on British produce sold in Europe, the merger of the UK and European emissions-trading schemes and the opening of e-passport gates to British tourists (ending perhaps the most visible sign of Brexit). Negotiations over a youth mobility scheme, including the UK rejoining the Erasmus student exchange programme, will continue. Starmer's most notable concession was granting EU fishing boats access to British waters for 12 years, meaning these rights will now expire in 2038 (the UK had sought just a four- or five-year extension).
It is economics, as well as politics, that is pushing Britain back towards Europe. In recent months, Rachel Reeves, traditionally one of the cabinet's most Eurosceptic members, has grown increasingly confident in her attacks on the 'failed Brexit deal'. It is not hard to see why – the EU, as she has noted, remains by far the UK's largest trading partner (accounting for 41 per cent of British exports and 51 per cent of imports). Here is a chance for the Chancellor to ease her nightmarish fiscal calculations (with the Office for Budget Responsibility potentially 'scoring' the new deal as a boost to future GDP growth).
Labour aides also see a potent political dividing line with Reform and the Tories. 'If they oppose the deal, they're supporting job cuts and barriers to trade,' a Reeves adviser told me. Chancellors always use the 'baseline' to their advantage – a Labour incumbent will warn that a Conservative government would mean deeper spending cuts; a Tory incumbent will warn that a Labour government would mean higher tax rises. Now, with much of British business on her side, Reeves will be able to argue that a new administration would jeopardise improved trade deals. While her Brexiteer opponents cry betrayal, the Chancellor will emphasise growth and stability.
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On this, the government believes it has an increasingly strong story to tell. 'If you add together the India deal, the America deal and the European deal, you can clearly see a UK government improving the terms of trade at a rapid clip,' a senior source told me.
In another political universe, Leavers would be claiming this flurry of deals as a 'Brexit benefit', offering sceptical but constructive opposition. But as they speak only of British failure, Labour believes it can trap Reform and the Tories on the wrong side of both voters and business.
This piece first appeared in the Morning Call newsletter; receive it every morning by subscribing on Substack here.
[See also: Keir Starmer's 'island of strangers']
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