Finance News

Keir Starmer’s EU push faces a harsh reality after local elections


U.K. Prime Minister Keir Starmer.

Wpa Pool | Getty Images News | Getty Images

This report is from this week’s CNBC’s UK Exchange newsletter. Like what you see? You can subscribe here.

The dispatch

Next month will mark a decade since Britain voted to leave the European Union but, as last week’s local elections demonstrate, the vote continues to cast a long shadow.

The results highlighted the extent to which the governing Labour Party’s support has fractured along lines echoing the referendum.

Labour’s younger voters, chiefly in London and university cities, defected in many cases to the pro-EU Green Party.

But even larger numbers of socially conservative white working-class voters in Wales, Scotland and northern England — the traditional bedrock of Labour’s support — switched to Reform, the insurgent party founded by Nigel Farage, the renowned Brexit campaigner.

Prime Minister Keir Starmer, as he battles to save his premiership, is promising to set a “new direction for Britain” at his summit with the EU in July.

“The last government was defined by breaking our relationship with Europe,” he said. “This Labour government will be defined by rebuilding our relationship with Europe by putting Britain at the heart of Europe so that we are stronger on the economy, stronger on trade, stronger on defense.”

That doesn’t sound like the kind of pitch to entice a former Labour voter in Sunderland, St Helens or Barnsley — all former Labour-run councils that fell to Reform — back.

The bigger question, for businesses and investors, is what Starmer meant by rebuilding the relationship.

Sadiq Khan: Britain should rejoin the EU

In his speech, he cited rejoining Erasmus, the EU program funding international placements in education and training, picturing “an ambitious youth experience scheme to be at the heart of our new arrangement with the EU … so that our young people can work and study and live in Europe”.

Notably, though, Starmer did nothing to suggest he will drop manifesto commitments ruling out freedom of movement between Britain and the EU or rejoining either the EU’s single market or customs union.

That is more cautious than many in his party would like. Sadiq Khan, mayor of London, wants to rejoin the EU. So does Andy Burnham, mayor of Greater Manchester, who is seen as a leading contender to succeed Starmer despite not currently being an MP.

A risky reset?



Read More: Keir Starmer’s EU push faces a harsh reality after local elections

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More