Lib Dems Call for Labour to Revisit EU Stance and Rejoin Single Market
Lib Dems to urge Labour to drop – As the UK prepares to mark the 10th anniversary of the Brexit vote, the Liberal Democrats are intensifying their push for a shift in Labour’s approach to European relations. In a strategic move to strengthen their own position, the party is targeting Andy Burnham, the Labour leader, with a direct challenge to abandon the “torpor and timidity” that has characterized Labour’s stance on the EU. This effort underscores a growing demand for closer economic ties with the bloc, even if it means accepting free movement of people, a policy that has long been a point of contention.
Ed Davey’s Challenge to Labour
Ed Davey, the Liberal Democrat leader, is set to deliver a compelling speech on Wednesday, urging Burnham to dismantle Labour’s existing red lines on the customs union and single market. The party’s position is that these barriers are hindering the UK’s economic recovery and deepening the divide between the nation and its European neighbours. Davey’s call for immediate action comes amid concerns that Labour’s current approach risks prolonging the uncertainties of Brexit.
“Labour’s red lines are holding Britain back. They are hurting the British people and they are playing into the hands of Farage and Reform.”
Davey argues that rejoining the single market—through a new UK-EU customs union—would be the most effective way to reverse the economic damage caused by Brexit. This plan, which involves aligning with the European Free Trade Agreement (EFTA) nations like Norway and Iceland, is presented as a pragmatic solution to restore trade flows and stability. The Lib Dems’ proposal also includes the creation of a European security council, aimed at addressing threats from Russia and the unpredictable policies of the US under Donald Trump.
The Cost of Brexit and Political Shifts
Labour’s commitment to not rejoining the EU, single market, or customs union was solidified in their 2024 manifesto. However, Davey contends that this stance is now a liability. He highlights the financial toll of Brexit, estimating that the UK is losing £90bn annually due to trade disruptions and reduced economic integration. This figure, he claims, has been a silent burden on households and businesses, with the public increasingly aware of the consequences of Labour’s reluctance to embrace closer ties with Europe.
Despite Labour’s promises, the Lib Dems are positioning themselves as the party best equipped to deliver a “reset” of the UK’s relationship with the EU. Their vision includes not only economic reforms but also a more unified approach to security and defence. Davey suggests that the UK could leverage its military capabilities as a bargaining chip to secure better terms with Brussels, a strategy that has gained traction among some EU members eager to deepen military cooperation.
EU Officials’ Stance on the Single Market
The European Union has remained steadfast in its position, emphasizing that the single market is not a commodity to be sold. Charles Michel, a former European Council president, recently reiterated this point during a conversation with the Guardian. He stated that the single market’s integrity is non-negotiable, and any attempt to reintegrate the UK without full acceptance of free movement would undermine its core principles.
“If the dream in the UK is to build closer ties, but if the consequence is less integrity in the single market, that will not work, because I feel that the single market is not for sale.”
Michel, who was Belgium’s prime minister during the 2016 referendum, acknowledged the possibility of a positive response from the EU if the UK demonstrates genuine commitment to reform. He emphasized that this is ultimately a matter of domestic UK politics, contingent on the readiness of the public for a serious debate on reintegration. The Lib Dems are positioning themselves to lead this discussion, arguing that their plan offers a viable path forward.
Broader Implications and Economic Reforms
The Lib Dems’ strategy also includes addressing the social and economic challenges exacerbated by Brexit. They point to the “Boris wave” and the small boats crisis as evidence of the UK’s ongoing struggles with migration and economic stability. By proposing a tighter returns agreement under the Dublin framework, the party suggests that the UK could attract more EU workers to support sectors such as hospitality, agriculture, and social care, which have faced significant labor shortages.
Additionally, the party is advocating for enhanced defence cooperation with the EU. This includes the formation of a European security council and a renewed focus on rearmament to meet NATO’s operational demands. Such measures would not only bolster the UK’s security but also create a framework for collaborative efforts against external threats. Davey frames this as a necessary step to ensure the country’s resilience in a volatile global landscape.
A New Path Forward
While the Lib Dems’ focus on the single market has evolved since their 2019 manifesto—where “stop Brexit” was a central slogan—they remain committed to a more integrated future. Davey’s speech marks a pivotal moment in this shift, aiming to redefine the party’s role in post-Brexit negotiations. By advocating for a reset with the EU, the Lib Dems seek to counter Labour’s current hesitancy and position themselves as the party most aligned with restoring economic prosperity.
The upcoming EU reset summit on 22 July, confirmed by Keir Starmer, adds urgency to this debate. Although there were concerns about delays due to unresolved youth mobility talks, the summit is now a key platform for discussing the UK’s future within the European framework. Davey’s argument that the single market is the UK’s best chance to end the crisis has resonated with voters, particularly those in regions most affected by Brexit’s economic fallout.
As the political landscape shifts, the Lib Dems are seizing the opportunity to challenge Labour’s policies and present an alternative vision. Their emphasis on economic and security cooperation with the EU highlights a broader strategy to rebuild trust and stability. With 72 MPs in the House of Commons, the party is leveraging its size to influence the direction of UK-EU relations, positioning itself as a critical player in the ongoing negotiations.
The debate over rejoining the single market is not just about economic gains—it is also about political credibility. Davey’s call to action is framed as a necessary step to move beyond the “endless talk” of a reset that has, so far, amounted to little more than a polite refusal. As the 10th anniversary of Brexit approaches, the Lib Dems are pushing for a decisive break from the status quo, offering a vision that could reshape the UK’s relationship with Europe for years to come.
