Labour under Prime Minister Keir Starmer is preparing a bill to legally underpin a reset of relations with the EU, aiming to boost trade and lower energy costs after the July 2024 election. The legislation would create a mechanism to align UK rules with EU standards in select areas and could be introduced in spring or summer. It faces strong opposition from the Conservatives and Reform UK and risks splitting Labour over whether to rejoin a customs union. Analysts say the bill's impact will depend on the scope of powers the government grants itself.
‘Bring It On’: Labour Readies Legislation To Reset Ties With The EU
British PM Keir Starmer (L) and European Commission President Ursula von der Leyen held a UK-EU summit in London in 2025 (Carl Court)(Carl Court/POOL/AFP)
Britain's Brexit battles, which once dominated Westminster, are shifting to a new front as the Labour government prepares legislation to formally reset relations with the European Union. Prime Minister Keir Starmer moved quickly after Labour's decisive July 2024 election victory to repair ties with the EU's 27 member states and is now planning a bill to give that reset a legal framework.
What the Bill Would Do
The proposed bill — expected in spring or summer and potentially coinciding with the 10th anniversary of the 2016 referendum — would create a mechanism for the UK to align with selected EU rules in areas such as trade and energy. A government source said the measure would "provide the powers to adopt the rules and set out the role parliament will play in that".
Agreements So Far
Last year, Starmer struck an economic agreement with EU leaders aimed at easing red tape on food and plant exports. Ministers also agreed to work toward an electricity arrangement to integrate the UK into the EU's internal electricity market, intended to help lower energy costs. The government says the reset could be worth £9.0 billion ($12 billion) to the UK economy by 2040.
Political Opposition
Despite Labour's commanding parliamentary majority, the bill is expected to face fierce criticism from the Conservatives and the hard-right Reform UK. A government official, anticipating attack lines from opponents, said simply: 'Bring it on.' Reform's leader and prominent Eurosceptic Nigel Farage is likely to brand the reset a 'Brexit betrayal'.
Divisions Within Labour
The plan also risks opening fault lines inside Labour. Some MPs, and figures such as Health Secretary Wes Streeting, have signalled support for a customs-union style arrangement, while Starmer has insisted he will not rejoin a customs union and prefers closer realignment with the EU single market. Thirteen Labour MPs recently voted for a Liberal Democrat bill calling for talks to rejoin a customs union, underscoring internal dissent.
What’s At Stake
Supporters say closer alignment will boost trade, help British business, and repair economic damage from the Brexit era. Critics warn that reopening these debates risks reigniting the divisions that rent UK politics after the 2016 referendum. Analysts note the ultimate impact will depend on how much latitude the government gives itself in the new legislation and its willingness to withstand political pressure.
Ian Bond, deputy director of the Centre for European Reform, said the bill's significance "will depend on exactly how much latitude the British government gives itself" and cautioned ministers appear wary of provoking Reform UK into fierce criticism.
Further details of the bill will be announced in due course, and ministers say they will set out precisely how parliament will be involved in any future alignments.
Reporting by AFP; additional context and editing provided.
Help us improve.
