The Liberal Democrats will urge Labour to end its 'torpor and timidity' towards the European Union, calling for the UK to rejoin the single market in a significant strengthening of their own position. Ahead of the 10th anniversary of the Brexit vote, party leader Ed Davey will challenge Labour to drop its red lines on the customs union and single market.
Ed Davey's Challenge to Labour
In a major speech, Davey will say: 'Labour's red lines are holding Britain back. They are hurting the British people and they are playing into the hands of Farage and Reform.' He will call for immediate talks on a more ambitious deal with the EU, including free movement, and propose a new European security council to address threats from Russia and the US under Donald Trump.
Strengthening the Lib Dem Position
This marks a notable shift towards advocating rejoining the EU. At the last election, the Lib Dems took a more gradual approach, contrasting with 2019's 'stop Brexit' manifesto. Keir Starmer confirmed the second EU reset summit on 22 July, despite deadlocked youth mobility talks. Labour promised in 2024 not to rejoin the EU, single market, or customs union.
Davey will argue: 'We can put an end to the endless talk of a 'reset', that so far seems to just mean saying 'no' more politely than the Conservatives did. And we can get on with properly fixing our relationship with Europe.'
Economic Impact and Free Movement
The Lib Dem plan to join the single market via the European Free Trade Association (with Norway and Iceland) and form a new UK-EU customs union aims to remove trade barriers and reverse Brexit's economic damage, which Davey says costs £90bn a year. However, rejoining the single market requires accepting free movement, putting the Lib Dems at odds with the Tories and Reform UK over immigration.
EU officials have expressed openness to the UK joining the European Economic Area but ruled out a goods-only single market without free movement. Former European Council President Charles Michel stated the single market is 'not for sale'. Michel added that the EU would react 'with a positive spirit' if the UK decided to rejoin.
Defence Cooperation and Reactions
The Lib Dems also call for deeper defence cooperation with the EU, including a European security council and rearmament drive to support NATO. The party, with 72 MPs, believes UK defence prowess can be a bargaining chip for a better deal. A Labour source dismissed the proposal as 'wedded to the past and old routine fringe issues', calling it 'careless and desperate'.
