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Wednesday, October 7, 2026
Future Finance Dutch

An Warning to Keir Starmer from His Personal History: If You're Not Bold regarding Britain's EU Exit and the EU, Your Party Challengers Might Be.

Back in 2018, a mere eight words to energize a Labour conference demonstrating the party was becoming disillusioned with its then leader. While not precisely soaring oratory, the words were greeted with wild cheering as most of the hall stood for an impromptu ovation.

As the commotion died down, Keir Starmer, stood at the podium, visibly startled. He was unaccustomed to his speeches producing such a reaction. All he had said was: "We are not excluding staying in the EU". But context is everything.

In that deeply polarized period in 2018, departing from his agreed text like this was inevitably viewed as issuing a challenge to Jeremy Corbyn, who sought to prioritize leave supporters in key constituencies above the Europhile sentiments within Labour. In just one speech, this seemingly cautious opposition Brexit spokesman was transformed – albeit temporarily – into a political gambler who would stand up for the party's base against the leadership he would later replace.

The Shift of Stance & Closed Debates

In the years since, much has happened, especially for Starmer himself. An early move after taking over in 2020 was declaring the Brexit issue had been settled by the previous year’s national vote. And, at the last one, he consistently stressed manifesto “red line” commitments that ruled out rejoining the European Union or its core structures.

Like his predecessor, his strategy has focused on winning Brexit-y voters in key seats, even if survey data indicates many of them have died or changed their minds.

Pressure Building on Europe

However, the tables have turned and Starmer is now to be an embattled party leader. And, if EU relations may not be the central crisis in UK politics, a lid which was firmly shut since Brexit is beginning to rattle once more.

The Prime Minister and Chancellor have intensified the rhetoric about the devastation that leaving the EU has caused to the UK’s economy. It’s a useful stick to criticize the Reform UK leader, who now rarely mentions how leaving the EU was once his singular purpose and remains his sole political accomplishment.

Nevertheless, the scale of the damage, which by some estimates has left Britain with a national economy that is significantly diminished compared to EU membership, towers over the micro-mitigation thus far implemented by the government. The PM's much-touted re-set deal agreed with Brussels last summer provides gains measured in low decimal points.

Internal Pressure and Ambitious Proposals

Rachel Reeves is among those trying to overcome long-standing interior ministry opposition to a broader scheme of a growth-enabling program for young people by which youths can travel between Britain and Europe to study or work.

David Lammy has pondered publicly about the clear advantages of joining a customs union with the EU, while a dozen Labour MPs, including the chair of the powerful finance committee, last week voted for a Liberal Democrat motion on customs union membership.

Although Nick Thomas-Symonds, who oversees EU policy, who is now attending all cabinet sessions, insists the red lines are still in place, there exist avenues to work around them. A proposal would be to announce the start of talks immediately for a more ambitious agreement, to be featured in the following election platform, with implementation only if Labour won a new electoral mandate.

The Prime Minister's Fundamental Scepticism

However, Starmer has most recently damping it all down on the idea cautioning that a return to an EU customs arrangement would “unravel” the trade pacts with America, which he views as key accomplishments of his government.

It is understood that the PM’s scepticism run even deeper, and is rooted in three further factors.

  1. Firstly, he believes any customs union agreement has been made much harder because his ministers actively diverging from European rules across a range of sectors, including the environment.
  2. Secondly, the prohibitive cost set for the UK for entry into the EU’s new defence fund and the subsequent collapse of negotiations has convinced UK negotiators that European nations have little interest in cutting special deals to the UK than in proving that Brexit does not work.
  3. Lastly, the new US national security strategy, which has been welcomed by Moscow, is viewed by key advisors in Downing Street as a reason for Britain to maintain distance from the EU.

A Bizarre Document & Geopolitical Considerations

This bizarre and terrifying American strategy paper asserts Europe faces “civilizational erasure” due to immigration. It contains a single mention to Britain, found on a suggestion that Donald Trump’s administration will intervene in British politics to encourage the growth of nationalist movements.

However, instead of deciding that this makes America an undependable ally, ministers reportedly fear that deeper EU integration could upset the global balance by risking precarious American backing for Kyiv, NATO, and other alliances.

Leadership Speculation & The Ghost of 2018

This situation brings us back to 2018. The PM has consistently stated that address was not an attempt to become leader but merely an attempt to keep open the “option” of remain being on the ballot paper. In fact, back then, he still supported a tailored trade agreement of the kind he currently seems to reject.

But it’s not been lost on Downing Street note that the Health Secretary, who just about everyone assumes would stand in any leadership election, is among a clutch of cabinet ministers signaling they want to go further regarding the EU.

Staff for Angela Rayner, another probable runner in a future race for the top job, insist she won’t discuss her stance on a customs union because it would only “escalate unhelpful speculation”.

The Clear Risk and A Prudent Reminder

The risk is clear. If Starmer rules out more meaningful steps towards EU alignment, he cedes ground to occupy the space where the overwhelming majority of Labour MPs, members and voters are to be found.

It would be prudent of him to remember the effect that a short phrase had on his career in 2018. There are options for a major proposal on EU relations which the PM ought to consider; he should explore them himself, before someone else adopt them as their own.

RB
About the author

Robert Ballard

Lena is a Dutch financial analyst specializing in sustainable investing and retirement planning for expats.

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