Prime Minister Sir Keir Starmer and European Commission President Ursula von der Leyen (Image: Getty)
Labour leader Sir Keir Starmer’s proposal to “reset” the UK’s relationship with the EU has drawn sharp criticism from leading economist Julian Jessop, who warns it risks undermining Brexit and dragging Britain back into the EU through the back door.
Mr Jessop’s comments reflect growing concerns among Brexiteers that Starmer’s overtures could signal a shift towards closer alignment with Brussels, despite assurances to the contrary.
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The Labour Party has pledged to improve the UK’s trade and investment relationship with the EU, including commitments to streamline trade barriers and negotiate new agreements on issues like veterinary standards and professional qualifications.
These plans were part of Labour’s election manifesto, which explicitly ruled out rejoining the EU’s single market or customs union.
However, Mr Jessop and other critics argue that Labour’s strategy is fraught with risks.
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Reform UK leader Nigel Farage (Image: Getty)
He said “Our negotiators risk being sent on a fool’s errand, with a woolly mandate from a witless Government.”
The obvious risk was of ending up as a “rule-taker aligned with a failing economic bloc”, he stressed
The fears of Brexiteers have been echoed by prominent figures, including former Reform UK leader and Clacton MP Nigel Farage, who suggested earlier this year that Sir Keir’s plans could amount to a covert effort to take the UK back into the EU.
Deputy leader Richard Tice - MP for Boston and Skegness - has also raised alarms, claiming that Starmer’s “reset” could erode the economic and political freedoms gained through Brexit.
Reform UK Deputy Leader Richard Tice (Image: Getty)
Mr Jessop, writing in the Telegraph, highlighted Labour’s assembly of a team of more than 100 civil servants for the negotiations, which he says is a prudent move to match the EU’s firepower but could also signal an overemphasis on European ties.
He asked: “Are as many resources being devoted to realising the benefits of leaving the EU?”
Instead, he urged the UK to focus more on new trade deals, such as with the US, and on improving domestic regulatory environments.
Critics point to the EU’s negotiating tactics, which remain as stringent as ever. The European Commission has reportedly insisted on further concessions from the UK, including in areas like fishing rights, youth mobility and access to university education. Jessop noted that while some proposals, such as youth mobility schemes, could be mutually beneficial, the EU’s broader demands often reinforce its dominance over the UK.
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Mr Jessop also highlighted the EU’s decision to refer the UK to the European Court of Justice for alleged shortcomings in implementing free movement rules under the Withdrawal Agreement, emphasising the lingering authority of EU institutions over British governance.
He took aim at what he called the “plague of zombie statistics” used by Remainers to justify closer EU ties. One oft-cited claim that Brexit would cost the UK ￡1 million an hour was dismissed as “nonsense” by Mr Jessop, who pointed out that the Office for National Statistics (ONS) never made such a statement.
He took exception at the tendency to exaggerate Brexit’s economic impact, citing recent analysis from the London School of Economics that showed a smaller-than-expected reduction in UK trade with the EU.
Mr Jessop wrote: “Any damage to trade has been far smaller than feared,", adding that this undermines the assumption of a 4% long-term hit to GDP per capita as predicted by the Office for Budget Responsibility.
Mixed news for the Chancellor...
Good news is that the government borrowed less than expected in November.
Bad is revisions which mean borrowing in the year-to-date is still ￡2bn above the OBR forecast (though this is a trivial overshoot in the context of the public finances). pic.twitter.com/M8WrQRhxbE
— Julian Jessop (@julianHjessop) December 20, 2024
Mr Jessop further argued that aligning with the EU risks tying the UK’s fortunes to a bloc struggling with its own economic and political crises.
“Germany and France are mired in crisis, and voters across the continent are abandoning the established pro-EU parties,” he said.
He urged the UK to focus on forging stronger ties with dynamic economies like the US rather than clinging to the fading stars of Europe.
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While some improvements to UK-EU relations may be possible without compromising Brexit, Mr Jessop warned against Labour’s apparent drift towards deeper alignment.
He said: “The irony is that more and more people in the rest of Europe are recognising that the EU is part of the problem, not the solution."
As the UK prepares to engage in talks with Brussels, critics like Mr Jessop caution that any reset must prioritise British sovereignty and global opportunities over a return to European dependency. For Brexiteers, Sir Keir's EU reset remains a controversial gamble that could backfire politically and economically.