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Monday, October 12, 2026
Fortune Observer

An Warning to Keir Starmer drawn from His Personal Past: If You're Not Bold on Britain's EU Exit and the EU, Your Labour Rivals Might Be.

Seven years ago, a mere eight words to energize the party's annual gathering and to show the party was becoming disillusioned with its then leader. While not exactly stirring rhetoric, the words met with rapturous applause as delegates rose in 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. His statement was simply: "We are not excluding staying in the EU". But context is everything.

During that deeply polarized period of 2018, departing from his agreed text in this way was inevitably viewed as laying down the gauntlet to Jeremy Corbyn, who sought to prioritize leave supporters in key constituencies over the pro-European instincts of his party. In just one speech, this seemingly cautious opposition Brexit spokesman was transformed – albeit temporarily – into a political gambler who championed most Labour MPs, members and voters against a leader he later succeeded.

The Evolution of Stance and Settled Debates

In the years since, the landscape has shifted, especially for Starmer himself. An early move after taking over from Corbyn in 2020 was declaring the Brexit issue was resolved by the previous year’s national vote. And, at the last one, he consistently stressed manifesto “red line” commitments that forbade re-entry into the EU, the single market or a customs union.

Similar to Corbyn, the PM's approach has focused on winning Brexit-y voters in target constituencies, despite polling evidence suggests a significant number have died or changed their minds.

A Lid That Rattles on the EU

However, it’s now Starmer is now to face the pressures of being a party leader. And, if EU relations may not be the boiling pot of British politics, the cap that has been kept tightly sealed for five years is beginning to rattle once more.

The Prime Minister and Chancellor have ramped up the rhetoric regarding the damage that leaving the EU has inflicted on the UK’s economy. This serves as an effective tool to criticize the Reform UK leader, who seldom discusses how leaving the EU was his primary goal and remains his only real achievement.

And yet, the scale of the damage, reportedly has resulted in a national economy that is between 6% and 8% smaller compared to EU membership, towers over the micro-mitigation thus far implemented by the government. Starmer’s so-called relationship reset negotiated with the EU in 2024 provides gains quantified in fractions of a percent.

Cabinet Divergence & Ambitious Proposals

Rachel Reeves is one of those attempting to bypass long-standing Home Office resistance to a broader scheme designed to boost growth youth mobility scheme allowing young people can travel between the UK and the EU for work or study.

David Lammy muses openly about the clear advantages of joining an EU customs pact, as several Labour backbenchers, such as the head of the powerful finance committee, recently supported a Liberal Democrat motion on customs union membership.

While Nick Thomas-Symonds, who oversees UK-EU relations, who is now attending every cabinet meeting, insists the firm boundaries remain unchanged, there are ways to work around them. One idea would be to declaring the commencement of talks immediately for a more ambitious agreement, for inclusion in the following election platform, with implementation only if Labour won a new electoral mandate.

Starmer's Fundamental Doubts

However, Starmer has most recently pouring cold water again by warning a return to a European customs area would “unravel” the commercial agreements with the US, which he views as key accomplishments of his government.

It is understood that Starmer's doubts go still deeper, stemming from three further factors.

  1. Firstly, he believes a customs pact is now significantly more difficult because his ministers busily de-aligning from EU regulations across a range of sectors, including the environment.
  2. Second, the exorbitant price demanded from Britain to join a European defense initiative and the subsequent collapse of negotiations has led UK negotiators that European nations are less interested in cutting special deals to the UK than in demonstrating that leaving the EU was a mistake.
  3. Thirdly, the new US national security strategy, praised by Moscow, is seen by some influential figures in Number 10 as a reason for the UK to maintain distance from Europe.

A Bizarre Strategy & Geopolitical Considerations

This strange and concerning American strategy paper claims Europe is threatened by “civilizational erasure” because of Muslim migration. It contains a single mention to Britain, placed beside a suggestion that Donald Trump’s administration may interfere in British politics to foster the growth of “patriotic” parties.

But, far from concluding that this makes the US an unreliable partner, ministers reportedly fear that aligning closer with Europe would destabilise geopolitics further by risking fragile US military support for Kyiv, NATO, and other alliances.

Leadership Speculation & The Ghost of 2018

This situation brings us back to the conference of 2018. The PM has consistently stated his speech was not an attempt to become leader but merely an effort to preserve the possibility of staying in the EU in a future vote. Indeed, back then, Starmer still favoured a tailored trade agreement similar to the one he now appears to be opposing.

But it’s not been lost on the Prime Minister's office have noticed that Wes Streeting, widely considered would stand for the leadership, is part of a clutch of senior ministers signaling they want to go further on Europe.

Staff for the Deputy Prime Minister, another probable runner in a contest to replace Starmer, maintain she refuses to comment on her stance on a customs union as it would merely “escalate unhelpful speculation”.

The Clear Risk and A Wise Reminder

The danger is obvious. Should the PM reject more meaningful steps towards EU alignment, he allows rivals to claim the territory where most of the party's supporters reside.

It would be wise for Starmer to recall the effect just a few words had on his career seven years ago. There are options for a big offer on EU relations which the PM ought to consider; he should prise them open himself, rather than letting rivals makes them his – or her – own.

Written by

Katherine Wright

A financial analyst with over 15 years of experience covering European markets and international trade dynamics.

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