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An Caution to Keir Starmer drawn from His Personal History: If You're Not Bold regarding Brexit & the EU, His Labour Rivals Might Be.

Back in 2018, a mere a short phrase to ignite the party's annual gathering and to show Labour was becoming disillusioned with its then leader. Although not exactly soaring oratory, the phrase met with wild cheering as most of the hall rose in an impromptu ovation.

When the noise subsided, Keir Starmer, stood at the podium, blinking in surprise. He was unaccustomed to his addresses having such an effect. All he had said was: "We are not excluding remain as an option". But context is everything.

In that deeply polarized period in 2018, straying from his agreed text in this way was inevitably viewed as issuing a challenge to the party leader, who was trying to prioritise leave supporters in key constituencies above the pro-European instincts within Labour. In just one speech, this grey-suited opposition Brexit spokesman underwent a transformation – if only for a while – into a political gambler who would stand up for most Labour MPs, members and voters against the leadership he would later replace.

The Shift of Stance & Closed Debates

In the years since, much has happened, not least to Starmer himself. One of his first acts upon assuming leadership in 2020 was declaring the EU question was resolved by the previous year’s national vote. And, at the last one, he repeatedly emphasised unbreakable pledge commitments that ruled out re-entry into the European Union or its core structures.

Similar to Corbyn, the PM's approach has been to pursue pro-Leave voters in key seats, even if survey data suggests many of them have passed away or shifted opinion.

Pressure Building on Europe

Yet, it’s now the prime minister’s turn to be an embattled party leader. While Europe is no longer the boiling pot in UK politics, the cap which was tightly sealed since Brexit is beginning to rattle once more.

Both Starmer and Rachel Reeves have ramped up the rhetoric about the devastation that leaving the EU has caused to Britain's economic standing. It’s a useful stick to criticize the Reform UK leader, who seldom discusses his flagship policy was once his singular purpose and is still his only real achievement.

And yet, the scale of the damage, which by some estimates has left Britain with a national economy that is between 6% and 8% smaller than if it were still in the EU, dwarfs the minor adjustments thus far implemented by ministers. The PM's much-touted re-set deal negotiated with the EU in 2024 offers economic benefits measured in fractions of a percent.

Cabinet Divergence and Bolder Ideas

Rachel Reeves is one of those attempting to bypass long-standing 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 to study or work.

The deputy prime minister has pondered publicly about the clear advantages of being in a customs union with the EU, as several Labour backbenchers, such as the head of the powerful finance committee, last week supported a Liberal Democrat motion on joining one.

While Nick Thomas-Symonds, the minister in charge of UK-EU relations, who is now attending all cabinet sessions, insists the firm boundaries remain unchanged, there are ways these could be bypassed. A proposal would be to announce the start of talks immediately for a more ambitious agreement, for inclusion in the next manifesto, to be enacted only after Labour won a fresh mandate.

Starmer's Fundamental Doubts

Yet, Starmer has most recently pouring cold water again cautioning that a return to a European customs area would “unravel” the commercial agreements with the US, which he views as key accomplishments of his premiership.

Reportedly that the PM’s scepticism run even deeper, stemming from three further factors.

  1. Firstly, he believes any customs union agreement is now much harder because his ministers busily de-aligning from EU regulations in numerous policy areas, including the environment.
  2. Second, the exorbitant price demanded from Britain to join a European defense initiative and the ensuing failure in talks has led British officials that former EU partners have little interest in cutting special deals with Britain and are more focused on demonstrating that Brexit does not work.
  3. Lastly, America's latest security doctrine, praised by the Kremlin, is seen by key advisors in Downing Street as grounds for the UK to maintain distance from Europe.

An Alarming Strategy and Strategic Calculations

This strange and concerning American strategy paper claims Europe is threatened by cultural extinction because of immigration. It contains a single mention of the UK, found on a suggestion that the US government will intervene in British politics to encourage the growth of “patriotic” parties.

However, instead of deciding that this makes the US an unreliable partner, ministers is worried that aligning closer with Europe would destabilise geopolitics further by endangering precarious American backing for Kyiv, NATO, and other alliances.

Leadership Speculation & The Echo of 2018

This situation brings us back to the conference of 2018. Starmer has always said that address was not a pitch for the leadership but merely an effort to keep open the “option” of staying in the EU in a future vote. Indeed, in those days, he still supported a tailored trade agreement of the kind he now appears to be opposing.

But it’s not been lost on Downing Street note that Wes Streeting, widely considered would stand for the leadership, is part of a group of cabinet ministers signaling they want to go further on Europe.

Aides to the Deputy Prime Minister, another likely contender in a contest to replace Starmer, maintain she won’t discuss her position on a customs union as it would merely “fuel unnecessary gossip”.

The Clear Risk & A Prudent Reminder

The risk is clear. If Starmer rules out more meaningful steps towards EU alignment, he allows rivals to occupy the space where the overwhelming majority of the party's supporters reside.

It would be prudent of him to remember the effect that a short phrase had on his career in 2018. Potential pathways for a major proposal on EU relations that the prime minister ought to consider; he should prise them open personally, rather than letting rivals adopt them as their own.

The writer

Marcus Scott

Elena Voss is a seasoned financial analyst and writer with over 15 years of experience in wealth management.

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