Would it make sense for us to rejoin the single market?

John Major, his reputation greatly enhanced since he left office in 1997, has called for the UK to rejoin the European Union’s single market (not the EU itself) on a five-year horizon.

- SEAN O'GRADY

Major and Tony Blair formed an informal “premier league” team during the 2016 Brexit referendum, and campaigned hard for Remain. Now Major, accepting the reality of the government’s red lines, is pointing the way to a closer relationship with – and within – Europe.

Can the UK stay outside the EU but join its single market?

Of course. Norway, Liechtenstein and Iceland are already in this category, as are some sectors of Switzerland’s economy.

What is the procedure?

There would have to be a negotiation. It would be more difficult for the UK than for other countries outside the EU, because the UK is a far larger economy - and because of the situation in Northern Ireland, which is already inside the EU single market and the EU customs union, with its own bespoke arrangements, which may complicate things. But it is perfectly possible in principle, with trust and goodwill.

What would it mean?

That the UK would accept all of the EU’s relevant laws and regulations as they evolve, along with free movement of labour and capital. There would be no restrictions on the movement of goods, or other non-tariff impediments to trade. This is called “dynamic alignment”.

A contribution to the EU budget for its various social and economic programmes is normal, so, for example, Norway pays about £500m a year - but the UK population, and its GDP, are multiples larger than Norway’s, so it would likely run into billions per annum. But the benefits to economic growth would be even bigger, if as yet unquantified. They would fit on the side of a bus, in any case.

A new, pressing problem is the EU’s draft “Made in Europe” strategy, a protectionist move, which threatens to do serious damage to the UK’s automotive industry and other sectors.

What would be left out?