Starmer must make the case for stronger ties with the EU

Keir Starmer has allowed Nigel Farage to set the government’s agenda on immigration. But he must not dance to Farage’s tune on the EU.

- ANDREW GRICE

The prime minister must be bold at a crucial summit in London on Monday to agree a reset with the EU. But Brussels officials tell me they’re worried Starmer’s “three nos” – to rejoining the single market and customs union and restoring free movement – are limiting the scope of the deal. “Flexibility cannot be for one side only,” one said.

The tough immigration measures announced by Starmer this week already risk harming UK growth. He shouldn’t make the same mistake twice.

The trade unions want Starmer to cross one of his red lines. “We’re wanting the government to look at every option on the table, up to and including the customs union,” said Paul Novak, the TUC’s general secretary. That’s not going to happen – at least until Labour drafts its manifesto for the next election. But Starmer can and should go further by pushing the boundaries of last year’s manifesto pledges to the limits, for example by forging a closer customs arrangement to reduce trade friction.

This offers the government its best shot at securing economic growth and reducing Brexit’s 4 per cent hit to GDP. An ambitious reset could hand Rachel Reeves some precious headroom against her fiscal rules as the Office for Budget Responsibility might raise its growth forecasts.