The pro-European tone and tenor that is characterising EU-UK ties under the newly elected Labour government is a positive change to rebuilding trust
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Following their election victory, the newly elected Labour government has made growth the central focus of its discourse, emphasising a renewed commitment to stability and development. However, achieving significant growth—much above the 1.5 percent annual increase in GDP—requires more than mere assurances of political stability. The United Kingdom’s (UK) productivity has languished since the financial crisis, and Brexit continues to weigh heavily on the economy trimming as much as 3 percent of the UK’s GDP, complicating any efforts to re-engage with the European Union (EU) without expending significant diplomatic and political capital.
The Conservatives, rather than revisit the messy legacy of Brexit, leaned heavily on anti-opposition rhetoric, sidestepping any meaningful engagement with the topic that had once dominated their agenda.
Brexit and the EU, the spectre that has haunted British politics over the past decade, were conspicuously absent from election discourse in the run-up to the UK general elections in July. Labour, perhaps wary of reopening old wounds, chose to tread carefully, emphasising competence and stability over the divisive debates of the past. Meanwhile, the Conservatives, rather than revisit the messy legacy of Brexit, leaned heavily on anti-opposition rhetoric, sidestepping any meaningful engagement with the topic that had once dominated their agenda. So where does this Catch-22 situation leave the EU-UK relationship in the wake of Labour’s electoral landslide?
Under Prime Minister Keir Starmer, Labour’s approach emphasises economic stability, while re-establishing Britain’s role on the global stage, which includes resetting ties “with Europe, on climate and the Global South”.
This is already evident through several actions undertaken by the new Labour government such as its hosting of the European Political Community (EPC) summit, which resulted in stark visuals of Macron and Starmer strolling through the 18th century gardens of Blenheim Palace. British foreign secretary David Lammy has already visited his counterparts in Germany, Poland and Sweden. Yet despite these warm overtures, fundamental transformations are unlikely to characterise the UK’s post-Brexit relationship even under a pro-European Labour government.
The UK’s relationship with the EU remains a politically polarising issue, with the public still reeling from the divisive rhetoric of the Brexit years. Currently, EU-UK ties are governed on the basis of the Trade and Cooperation Agreement of 2020 set during Boris Johnson’s tenure. The Labour government has adopted a cautious stance, pledging not to reverse Brexit or rejoin the single market or customs union, choosing internationalism over integration.
This commitment, while pragmatic since it is too early to hear any pitches for rejoining the EU, has effectively boxed Labour into a position where any potential changes to the EU-UK relationship are likely to be modest and technical, rather than sweeping or transformational. Labour's leadership is acutely aware that even minor moves towards closer ties with the EU could provoke political backlash, especially from those constituencies that were instrumental in delivering Brexit in the first place. This leaves the government with few options beyond pursuing limited, pragmatic adjustments—such as streamlining border procedures for goods, facilitating easier business travel, or enhancing cooperation in areas like research and education. These technical improvements, while important, are unlikely to significantly alter the broader economic picture.
Labour's leadership is acutely aware that even minor moves towards closer ties with the EU could provoke political backlash, especially from those constituencies that were instrumental in delivering Brexit in the first place.
The Labour government understands that any attempt to reopen the broader Brexit debate could prove politically disastrous. The chinks were evident in the election results - despite its landslide victory, Labour only won 33.7 percent of the popular vote, while Nigel Farage’s Reform received 14.3 percent of the vote despite winning only five seats. The populist sections of the British media have already warned of a ‘Brexit retreat’, and despite Labour’s win of 411 out of 650 seats, it knows its popularity cannot be taken for granted. Thus, Labour’s strategy is one of cautious pragmatism - focusing on modest trade adjustments, a shift towards a “home-grown” economy with industrial subsidies and shortened supply chains, and a quest for Free Trade Agreements with countries like India to achieve meaningful economic growth.
Across the Channel, the EU faces challenges of its own - the war in Ukraine, economic struggles, the rise of the far-right, a strained green deal, and debates over the bloc’s eastward expansion. Improving relations with Britain, a former member, seems less urgent. The Brexit trade deal, heavily skewed in the EU’s favour, remains in place, and despite its upcoming review in 2025, there is little desire for a fundamental renegotiation. That said, the EU remains Britain's largest trade partner, with its share of UK trade increasing in recent years.
One area of concern for the EU is the mobility of people, particularly musicians, students, and young professionals, whose travel has become more difficult and expensive post-Brexit. While there is interest in reducing red tape and visa costs, a return to free movement is off the table for Britain as this would go against the fundamental logic of Brexit. The EU also hopes for Britain's re-entry into the Erasmus student exchange program, although financial constraints may hinder this. Mutual recognition of professional qualifications is another complicated issue, tied closely to the single market.
While there is interest in reducing red tape and visa costs, a return to free movement is off the table for Britain as this would go against the fundamental logic of Brexit.
Labour's proposals, including a veterinary agreement to ease trade in agricultural products and reduce border checks between Great Britain and Northern Ireland, face scrutiny from the EU. Since Brexit, border controls on British agri-food imports have been costing businesses €390 million annually, with the industry estimating this to be €3.5 billion. Yet European officials remain wary of Britain's selective engagement with the single market or “cherry-picking”.
For those hoping Britain might rejoin the EU, the prospect remains unlikely. Negotiations would be lengthy, terms less favourable, and preparing the British public for a reversal would be impossible at this juncture. Moreover, the EU itself is evolving, likely to expand eastward and increase its budgetary demands. Instead, the idea of a multi-tier, multi-speed Europe could emerge as a more viable alternative, appealing not only to new Eastern members but also to non-members like Britain, Norway, and Switzerland.
Where EU-UK post-Brexit cooperation seems most promising is in the area of security and defence, with Labour’s manifesto highlighting an EU-UK security pact. According to Lammy, this would cover areas such as defence, energy, climate, migration and critical minerals. The UK’s staunch financial and military support to Ukraine has already solidified post-Brexit Britain’s role in European security, and Labour’s signalling that it would prioritise the Euro-Atlantic theatre also augurs well in this context. Similar to its Lancaster House treaty with France, the UK, and Germany are exploring a defence partnership. The two sides could also consider launching an EU-UK Trade and Technology Council, similar to the EU’s TTCs with India and the US. Shared global interests such as managing the China challenge, and maintaining the rules-based international order that is being violated, can further spur cooperation.
The idea of a multi-tier, multi-speed Europe could emerge as a more viable alternative, appealing not only to new Eastern members but also to non-members like Britain, Norway, and Switzerland.
For now, any significant transformation in the EU-UK relationship seems unlikely during Labour’s first term. The party may instead focus on other victories, such as strengthening ties with India and the United States (US) while making modest improvements in cross-channel relations. Streamlining food checks and facilitating intra-firm transfers are achievable goals, but they are unlikely to have a substantial impact on growth. Despite ambitions set out in Labour’s manifesto to “tear down unnecessary barriers to trade”, Brussels will be cautious not to allow the UK to have its cake and eat it too, that is, remain outside the EU but gain concessions or terms granted only to EU member states.
Should Trump retake the White House in 2025 though, the geopolitical landscape could shift dramatically, forcing both the UK and the EU to reconsider their strategic priorities. Trump's previous tenure was marked by a transactional view of alliances, casting doubt on the future of NATO and the reliability of American support for Europe. In such a scenario, the UK's traditional reliance on its "special relationship" with the US would come under strain, and Britain might find itself compelled to seek closer ties with Europe out of necessity.
Trump's previous tenure was marked by a transactional view of alliances, casting doubt on the future of NATO and the reliability of American support for Europe.
A Trump victory could, paradoxically, accelerate the very rapprochement between the UK and the EU that both sides are hesitant to embrace. This eventuality, especially in the context of the escalating war in Ukraine and rampant global instability, could precipitate the need for unified action. The spectre of a more inward-looking America would leave Europe, and by extension, Britain, in a precarious position, potentially driving a new calculus in which old divisions are set aside in favour of greater cooperation. In an unpredictable environment, the UK’s strategic interests might best be served by a pragmatic pivot back towards its European neighbours, with a focus on security and defence collaboration that could redefine the post-Brexit relationship.
One way or another, after the Euroskeptic Tories, the pro-European tone and tenor that is characterising EU-UK ties under Labour is a positive change to rebuilding trust and finally bringing ties out of the shadow of Brexit.
Shairee Malhotra is an Associate Fellow with the Strategic Studies Programme at the Observer Research Foundation.
Noah Chamberlain is a Research Intern at ORF and a Foundation Scholar at Queens’ College, University of Cambridge.
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Shairee Malhotra is Associate Fellow, Europe with ORF’s Strategic Studies Programme. Her areas of work include Indian foreign policy with a focus on EU-India relations, ...
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Noah Chamberlain is a Research Intern at ORF and a Foundation Scholar at Queens’ College, University of Cambridge. ...
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