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An Warning for Keir Starmer drawn from His Personal Past: Without Boldness regarding Britain's EU Exit & the EU, His Labour Rivals Shall Be.

Seven years ago, it took just a short phrase to ignite the party's annual gathering demonstrating Labour was becoming disillusioned with Jeremy Corbyn. While not precisely soaring oratory, the phrase met with rapturous applause as delegates stood for spontaneous acclamation.

As the commotion died down, the then-Brexit spokesman, stood at the podium, visibly startled. He wasn't really accustomed to his addresses producing such a reaction. All he had said was: "Nobody is ruling out remain as an option". Context, however, is key.

In that darkly divisive time in 2018, departing from his agreed text in this way was always going to be seen as issuing a challenge to Jeremy Corbyn, who was trying to prioritise Brexit voters in working-class seats above the pro-European instincts of his party. With that single address, this seemingly cautious shadow Brexit secretary underwent a transformation – if only for a while – into a risk-taker who championed most Labour MPs, members and voters against a leader he would later replace.

The Shift of Stance and Closed Issues

In the years since, the landscape has shifted, especially for Starmer himself. One of his first acts upon assuming leadership from Corbyn in 2020 was declaring the EU question was resolved by the previous year’s national vote. And, at the last one, he consistently stressed unbreakable pledge commitments that ruled out rejoining the EU, the single market or a customs union.

Like his predecessor, his strategy has been to pursue Brexit-y voters in target constituencies, even if survey data suggests a significant number have passed away or shifted opinion.

A Lid That Rattles on Europe

However, it’s now the prime minister’s turn to be an embattled party leader. And, if EU relations may not be the central crisis in UK politics, the cap that has been kept tightly sealed since Brexit is starting to loosen once more.

Both Starmer and Rachel Reeves have intensified the rhetoric about the devastation caused by Brexit has caused to Britain's economic standing. It’s a useful stick with which to beat Nigel Farage, who now rarely mentions his flagship policy was once his singular purpose and is still his only real achievement.

Nevertheless, the extent of the economic harm, which by some estimates has left Britain with an economy that is significantly diminished than if it were still in the EU, towers over the micro-mitigation so far offered by the government. 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 Ambitious Proposals

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

David Lammy has pondered publicly about the clear advantages of joining a customs union with the EU, as several Labour backbenchers, including the chair of the Treasury select committee, recently supported an opposition proposal on customs union membership.

Although Nick Thomas-Symonds, who oversees UK-EU relations, who is now attending all cabinet sessions, insists the red lines remain unchanged, there exist avenues to work around them. One idea would be to announce the start of talks immediately for a more ambitious agreement, to be featured in the following election platform, to be enacted only after securing a new electoral mandate.

Starmer's Fundamental Scepticism

Yet, Starmer has lately been pouring cold water again by warning rejoining a European customs area could undermine the trade pacts with America, which he regards as signature achievements of his premiership.

Reportedly that Starmer's doubts run even deeper, and is rooted in three further factors.

  1. First, he thinks any customs union agreement has been made much harder as ministers are busily de-aligning from EU regulations across a range of sectors, like environmental standards.
  2. Secondly, the exorbitant price demanded from Britain for entry into a European defense initiative and the subsequent collapse of negotiations has convinced British officials that European nations are less interested in cutting special deals to the UK than in proving that leaving the EU was a mistake.
  3. Thirdly, America's latest security doctrine, which has been welcomed by the Kremlin, is viewed by some influential figures in Number 10 as grounds for the UK to keep its distance from Europe.

An Alarming Strategy & Strategic Considerations

This bizarre and terrifying document asserts Europe is threatened by cultural extinction due to immigration. It contains only one reference to Britain, placed beside a suggestion that the US government will intervene in British politics to encourage the growth of nationalist movements.

But, far from concluding that this renders America an undependable ally, the government reportedly fear that deeper EU integration could upset the global balance by endangering precarious American backing for Ukraine, Nato and much more besides.

Leadership Speculation & The Echo of 2018

All of which brings us back to 2018. Starmer has always said his speech was not a pitch for the leadership but simply an attempt to preserve the “option” of remain in a future vote. Indeed, in those days, Starmer still favoured a tailored trade agreement of the kind he currently seems to reject.

Observers within the Prime Minister's office note that the Health Secretary, who just about everyone assumes would stand for the leadership, is part of a group of cabinet ministers signaling they desire greater ambition regarding the EU.

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

The Clear Danger & A Wise Reminder

The risk is clear. 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 prudent of him to remember the impact just a few words had on his career seven years ago. There are options for a big offer on EU relations that the prime minister should not “rule out”; he should explore them himself, rather than letting rivals adopt them as their own.

The writer

Sean Smith

Liam Chen is a financial analyst and writer specializing in personal finance and investment strategies.

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