Comments by senior figures in the UK government suggest a noticeable change in how Labour is approaching Brexit, with growing emphasis on rebuilding closer ties with Europe as economic pressures persist. Speaking this week, Chancellor Rachel Reeves said that Brexit had caused “deep damage”, while stressing the government was not seeking to reverse the decision to leave the European Union. Instead, she signalled a stronger push to improve cooperation with European partners where it benefits the UK economy. Get today's headlines by email Her remarks reflect a broader shift already hinted at by Prime Minister Keir Starmer, who previously said Brexit had harmed economic performance and called for a closer working relationship with the EU. Economic concerns drive rethinkLabour’s 2024 election platform committed to limited changes to the post-Brexit trade deal negotiated under Boris Johnson, including reducing trade barriers on food exports through regulatory alignment. However, the party maintained firm “red lines”, ruling out rejoining the single market, customs union or restoring freedom of movement. Recent statements suggest ministers now see deeper cooperation with the EU as a potential route to boosting growth, which has remained modest despite government targets. Reeves indicated that aligning regulations more closely with the EU in certain sectors could help improve economic performance. Other senior figures have been more explicit. Health Secretary Wes Streeting has described Brexit as an obstacle to growth, while Foreign Secretary David Lammy said its economic impact was “self-evident”. Political pressures from within and beyondThe shift also comes amid pressure from within Labour. London Mayor Sadiq Khan has called for rejoining the EU’s single market and customs union, and even proposed campaigning to rejoin the bloc in future. At the same time, the party faces a complex electoral landscape. While Labour originally hardened its Brexit stance after losing support among Leave voters in 2019, more recent polling suggests its current difficulties stem more from losing pro-EU voters to other parties. Data indicates a significant share of Labour’s 2024 support came from voters who favour closer ties with the EU, or even rejoining. Since then, many have shifted to parties such as the Greens and Liberal Democrats, both of which advocate reversing Brexit in the long term. Balancing competing voter demandsThis presents a strategic dilemma. While appealing to pro-Brexit voters remains important, Labour may also need to regain support among those who backed remaining in the EU. Polling suggests most Labour voters support closer relations with Europe, but there is also strong backing within the party’s base for eventually rejoining the EU altogether. However, specific policy proposals—such as aligning UK regulations with EU standards to ease trade—can divide opinion when framed as a trade-off between sovereignty and economic benefits. Opponents, including the Conservatives and Reform UK, are likely to argue that closer alignment undermines Brexit by returning decision-making to Brussels. As a result, Labour’s evolving Brexit strategy may prove politically sensitive, requiring the party to persuade voters that any changes strike the right balance between economic growth and national control. Join the discussion? Already a member? Adapted by ASEAN Now. Source 20 March 2026
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