Since the 2016 referendum, the debate surrounding the UK’s membership in the European Union has raged on, and the Labour Party has taken a firm stance on the issue. While many argue that rejoining the EU’s Single Market and Customs Union would be key to revitalising the UK economy and mitigating the negative effects of Brexit, the Labour Party, under the leadership of Keir Starmer, continues to reject this idea. Below we will explore why the Labour Party has maintained this position despite mounting evidence of Brexit’s adverse effects on the economy and society.
Best for Britain’s recent findings on Reform UK and EU-UK relations
In a surprising twist, polling from Best for Britain highlights that even those voters who supported Reform UK – a party with an explicitly anti-EU stance – are now not opposed to closer relations between the UK and the EU. An MRP poll of over 4,000 participants conducted by YouGov shows that 70% of Reform UK voters want the UK government to remove trade barriers with the EU. Furthermore, 80% voters support increased cooperation to tackle crime and 81% support reducing illegal crossings of the English Channel. About half of Reform UK voters are in favour of a new defence pact with the EU (52%) and a Youth Mobility Scheme (49%).
This polling data reveals there is a growing desire for stronger ties with the EU, even among those who voted for more extreme Brexiteer parties. It suggests that many UK voters may be rethinking the consequences of the country’s separation from the EU and are open to pragmatic solutions, even if they don’t support a complete reversal of Brexit. The findings are noteworthy, as they underscore that rejection of EU membership doesn’t necessarily equate to opposition to closer collaboration in the future.
The polling suggests that a significant portion of the electorate, including some Reform UK voters, want to move past the tensions of Brexit and focus on rebuilding the UK’s relationship with Europe.
Labour Party’s manifesto position on EU relations
The UK Labour Party’s official manifesto for 2024 clearly outlined its approach to Britain’s relationship with the EU. While it reaffirmed the party’s commitment to keeping the UK outside the European Union, it also emphasised the need to “make Brexit work” and that it would seek to “reset” the UK’s relationship with its European neighbours.
Key elements of Labour’s stance include:
- No Return to the Single Market or Customs Union: The Labour manifesto explicitly rules out the possibility of rejoining the Single Market or Customs Union. Labour’s policy aims to avoid reopening the divisions of the past, which include the contentious debate over free movement and the regulatory frameworks that shaped the EU-UK relationship.
- Improving Trade Relations: Labour’s focus is on removing unnecessary barriers to trade, particularly in sectors like food, arts, and professional services. Labour has pledged to negotiate agreements such as a veterinary deal to accept veterinary certification for foodproducts without the need for extra checks, in order to help reduce the need for border checks for food imports.
Labour’s approach may be pragmatic, but risks missing the economic imperative
Labour’s decision not to pursue rejoining the Single Market and Customs Union, despite growing support for this move, may be a politically pragmatic one – but it risks ignoring evolving economic realities. As economic challenges continue to mount, especially at the Irish border, in business supply chains, and within the UK’s export sector, there are increasing calls for a more balanced, cooperative relationship with Europe. Key to these demands is a reconsideration of the economic ties that once brought the UK immense benefits, particularly in terms of trade, regulatory alignment, and ease of movement for both goods and people.
Labour’s steadfastness on this issue, despite the economic pressures, mirrors its broader pattern of policy U-turns. Much like the scaling back of its renationalisation agenda, its retreat on climate investment, and the shelving of House of Lords reform, the refusal to re-enter the Single Market can be seen as a decision influenced more by political calculus and the need to prioritise domestic stability over bold, idealistic policy shifts. Labour’s concern is that rejoining the EU’s economic frameworks could alienate those voters who still view Brexit as a definitive choice and that such a move could risk fracturing the party’s internal unity, which is particularly important for maintaining its broader political mandate.
Geographic logic: Europe is our natural trading partner
One of the clearest arguments for a return to the Single Market and Customs Union lies in geography. Europe is the UK’s closest and most accessible trading bloc, facilitating efficient supply chains and low-cost transport. Academic studies confirm that trade volume correlates strongly with proximity.
In contrast, the government’s decision to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) – a Pacific trade bloc thousands of miles away – has proceeded without either a referendum or any widespread public consultation, raising concerns about democratic legitimacy.
The relatively short distances between the UK and continental Europe dramatically reduces transportation costs, delivery times, and logistical complexities. Trade economics consistently show that proximity matters: the closer two markets are, the more goods and services flow between them. Within the European Single Market, most trade happens over short distances – often less than 250 kilometres – facilitated by well-established infrastructure such as ports, railways, and highways.
This geographical closeness supports highly integrated supply chains, especially for intermediate goods, allowing businesses to operate just-in-time production models that minimise inventory costs and maximise efficiency. In contrast, trading with more distant partners in Asia, the Americas, or Oceania involves longer shipping times, higher freight costs, and increased exposure to border frictions and delays. These factors make Europe not only the UK’s nearest but also its most economically sensible trading partner.
The CPTPP accession: A democratic deficit?
In the wake of Brexit, the UK government under the Conservative Party embarked on a strategy to “go global” by seeking membership in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), an extensive trade bloc spanning Asia-Pacific countries. While diversification of trade partners is a strategic goal, the process of joining the CPTPP has raised serious questions about democratic accountability.
Unlike the Brexit referendum, which was a direct public vote on a major trade and sovereignty issue, the UK’s accession to the CPTPP has proceeded without any public referendum or meaningful consultation. The current Labour government has not reversed or paused this process despite opposition voices within and outside Parliament. This lack of direct public engagement on such a significant trade agreement highlights a concerning gap in how trade policy decisions are made – especially given that these agreements can have profound impacts on domestic industries, regulations, and consumer protections.
For many, this raises the question: if the UK government was willing to put Brexit to a public vote, why did it not do the same for joining the CPTPP, a trade deal that will shape the country’s economic future for decades?
EFTA membership as the next option
An immediate step toward closer engagement with Europe could be for the UK to join the European Free Trade Association (EFTA), which would allow the UK to rejoin the EU’s Single Market without necessarily re-entering the full EU framework. This process would require the consent of existing EFTA members and acceptance of the four freedoms (persons, goods, services, and capital). Membership in EFTA would provide the UK with the benefits of free trade with EU member states, while maintaining sovereignty over its laws and borders. This option offers a pragmatic pathway to repair the economic damage caused by Brexit and could be a compromise solution to bridge the gap between full EU membership and the current status quo.
If the UK wanted to rejoin the EU as a full member, the UK would likely need to leave the CPTPP, since EU membership requires alignment with its trade and customs policies. EFTA membership for rejoining the EEA/Single Market stands as a secondary but realistic option for that reason.
Conclusion: Rejoining is a rational, not ideological, move
The weight of evidence suggests that rejoining the Single Market and Customs Union is no longer a purely political or ideological issue – it is an economic imperative. It offers practical solutions to trade disruptions, business uncertainty, and diminished consumer rights. Moreover, growing public support across the political spectrum – even among Reform UK voters – makes the political risk of such a move increasingly manageable.
For a party that has already reversed itself on multiple major promises, Labour’s continued adherence to its Brexit pledge seems less about principle and more about political optics. But as the economic toll of Brexit grows and public consensus shifts, the cost of inaction may soon outweigh the fear of re-engaging with Europe.
