Rejoining the EU’s single market would not boost the UK’s economic growth, Keir Starmer argued, saying it would create “years of uncertainty” for British companies, which would be worse than the closer trade ties that were to come.
In another sign of Labour’s extreme reluctance to be portrayed as attempting to dismantle or roll back Brexit, Starmer said that as Prime Minister he would instead seek to improve the post-departure deal agreed by Boris Johnson.
Asked whether he thought single market membership would benefit UK growth, the Labor leader told ` Radio 4’s Today program on Monday: “No, at this stage I don’t think that would be the case , and there is no reason to return to the EU or go back into the single market. I think there are arguments for a better Brexit. I think there are very good arguments for Brexit to work.”
When asked why he thinks so, when so many British firms have said they are suffering from significant additional difficulties exporting to and importing from the EU, Starmer said the single market is not the solution.
“Trade has gone down because the deal we did isn’t a very good deal,” he said. “I think we could go from making Brexit work, which is all we have done at the moment, to making Brexit work. And I think there is a better deal.
“But do I think looking back at years of strife and uncertainty will help our economy? No, I do not. I spent many years after 2016 talking to companies who kept telling me the hardest part for us is all the uncertainty. That really held us back for many years and I don’t want to go back to that.
“But I think we can move on to a better deal because I don’t think this one will work.”
Starmer insisted he would not revisit the idea even if future trade barriers with the EU seemed to hamper growth.
“I understand and will absolutely improve the deal we have,” he said. “But let’s just see that the low growth in our economy has continued for the past 12 years. It preceded Brexit, it preceded Covid and it preceded Ukraine. There is something fundamental about the way our economy works.”
Starmer’s stance is arguably more uncompromising than that of Jeremy Hunt, the Chancellor, who was asked the same question by Today last month.
Asked whether Single Market membership would boost growth, Hunt said “unrestricted trade with our neighbors and countries around the world is very beneficial for growth,” but participation in the Single Market was politically impossible as it would would require free movement of people.
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