Labour tried to join EU single market for goods

 Sir Keir Starmer’s Government tried to join the EU single market for goods in what would have been a major unravelling of the Brexit deal.

Michael Ellam, Britain’s chief negotiator, proposed that the country rejoin the market in order to deepen economic ties to Brussels as part of wider talks over the past few months.

Accessing the EU single market for food and drink was one of a number of ideas being proposed as part of negotiations between Brussels and Britain.

However, EU officials turned down the proposition because Britain said it could not abandon the Prime Minister’s “red line” on free movement of Europeans to the UK.

The EU has always said Britain could not be fully part of the single market unless it allowed Europeans to live and work in Britain without limits or regulations.

The reported proposal comes ahead of a UK-EU summit widely expected to take place in July. 

A new youth mobility scheme between Britain and the EU, as well as an end to food and agricultural product checks, are among other issues expected to be discussed at the meeting.

Sir Keir and his Government have been accused of trying to reverse Brexit.

As part of a reset deal struck last year, the Prime Minister surrendered British fishing waters to European boats for 12 years. Britain also rejoined the Erasmus student exchange scheme.

Rachel Reeves, the Chancellor, called for “deeper integration between the UK and EU”, while Wes Streeting said Britain should rejoin the EU and that the country’s “future lies with Europe”.

While Brussels is understood to be open to greater co-operation and integration between Britain and the EU, officials are concerned that perceived preferential treatment will cause upset among other members.

An EU diplomat told The Guardian: “If you start going back on those principles – leading to a non-member being treated better than an actual member – you certainly would trigger an internal debate on the fundamentals of [EU] co-operation.”

A Cabinet Office spokesman said: “We have previously confirmed that the next UK-EU summit will be held this summer. A final date will be confirmed in due course.

“We are negotiating an ambitious package of measures with the EU ahead of the summit, including a food and drink SPS [Sanitary and Phytosanitary] deal and emissions trading deal that, alone, are set to add up to £9bn a year to the UK economy by 2040.”

A spokesman for the European Commission said: “The EU and the UK are close partners and allies. In today’s geopolitical environment, we have a shared interest in a stronger co-operation that delivers for our security, our economies and our citizens.

“In view of the next EU-UK summit, we are working to conclude the key files of last year’s Common Understanding – an SPS agreement, ETS [emissions trading system] linkage, a youth experience scheme, and to advance work on electricity trading.

“We also see scope to deepen co-operation where it matters most now – defence industrial co-operation, in particular the UK’s intention to enter discussions on its association to the EU’s Ukraine support loan; innovation, with ongoing discussions on UK participation in the European Innovation Council and the Scale-up Europe Fund; and co-operation to tackle irregular migration and fight smugglers’ networks.”