Brexit: ‘We don’t want to diverge’ from EU, says Sir Keir Starmer
Sir Keir Starmer has declared “we don’t want to diverge” from EU rules in footage of a conference of centre-left leaders in Canada seen by Sky News.
The Labour leader went beyond his usual cautious formulations on Britain’s relationship with the EU at an event on Saturday alongside the Norwegian prime minister, Jonas Gahr Store.
Sir Keir argued that Britain’s relationship with the EU could be much stronger, while still remaining outside the bloc and outside the single market, “the more we share a future together”.
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The comments surprised EU diplomats, who believe they are significant.
Leading expert Charles Grant, director of the Centre for European Reform, said that the comments go further than what Sir Keir has said previously, and that Brexiteers might question the point of leaving the EU if the UK does not significantly deregulate.
This is likely to trigger a discussion about the nature of a relationship with the EU and questions from some about whether Britain can maximise the advantages of Brexit if it is largely following EU rules.
The comments are likely to be welcomed by some businesses who do not want to have to operate under multiple sets of rules. However, others who feel held back by EU bureaucracy are set to be disappointed.
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Sky’s Sam Coates looks at the significance of Starmer’s comments
The remarks were made on Saturday evening. Sir Keir was responding to a question from John McTernan, a former aide to Sir Tony Blair, at a conference for progressive leaders in Montreal.
“Most of the conflict with the UK being outside of the UK [sic] arises in so far as the UK wants to diverge and do different things to the rest of our EU partners,” the Labour leader said.
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“Obviously the more we share values, the more we share a future together, the less the conflict. And actually different ways of solving problems become available.
“Actually we don’t want to diverge, we don’t want to lower standards, we don’t want to rip up environmental standards, working standards for people that work, food standards and all the rest of it.
“So suddenly, you’re in a space where, notwithstanding the obvious fact that we’re outside the EU and not in the [European Economic Area], there’s a lot more common ground than you might think.”
Sir Keir Starmer and Emmanuel Macron. Pic: Presidence de la Republique France
He said there were a lot of shared values and history with the EU, and that on security issues, and NATO, it was good that the conflict in Ukraine brought institutions together – “that has created a wider space in Europe for a discussion.”
Last week, Sir Keir shut down speculation he might join an EU quota system on migrants after he said he would talk to the bloc about a migrant returns deal.
These comments go much further than Sir Keir went in an interview with the Financial Times on Monday, when he reconfirmed that he would negotiate a better deal with the EU.
Almost everyone recognises the deal Boris Johnson struck is not a good one – “it’s far too thin”, Sir Keir said in an interview, adding: “As we go into 2025 we will attempt to get a much better deal for the UK.”
Mr Grant, who is one of the foremost experts in UK and EU relations, said the comments were new.
“I think if Keir Starmer wants to get the best deal with the prime minister, he’s going to have to prepare the ground, which is why he saw Emmanuel Macron last week, why he probably said some comments when he was in Montreal that were quite interesting,” he said.
“Because he’s trying to soften up the other world leaders, so they know what to expect when he becomes prime minister if he does.”
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Next week, Mr Grant and the CER think tank will publish “a European strategy for Labour.”
Asked if he was surprised by Sir Keir’s comments, he said: “I don’t know whether it was intended or not, and maybe it just slipped out late on the Saturday evening.
“The fact that he hasn’t said anything quite similar in the UK is perhaps telling. Maybe what he thinks is that we shouldn’t diverge too much with the EU because he understands instinctively that it’s actually bad for businesses.”
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Asked if keeping EU rules would undermine the rationale of Brexit, Grant replied: “I think that some of the Brexiteers have a point.
“The only economic case really that backs up Brexit is the idea of Singapore-on-Thames. The idea that if you do leave the EU, you are free to have your own rules.”
Sky News approached Labour HQ ahead of publication.
“We’ve left the European Union and we’re not going back in any form,” a party spokesperson said.
“We don’t support dynamic alignment. We’re not joining the single market or the customs union. We will not be in a situation where we are a rule taker.
“Any decisions on what standards we follow will be made in the UK parliament.
“The Tories have not used Brexit to diverge on food, environmental or labour standards and if they have a plan to do so then they should come clean with people.”
The last blast furnaces left operating in Britain could see their fate sealed within days, after their Chinese owners took the decision to cut off the crucial supply of ingredients keeping them running.
Jingye, the owner of British Steel in Scunthorpe, has, according to union representatives, cancelled future orders for the iron ore, coal and other raw materials needed to keep the furnaces running.
The upshot is that they may have to close next month – even sooner than the earliest date suggested for its closure.
Read more: Thousands of jobs at risk as British Steel consults unions over closure
The fate of the blast furnaces – the last two domestic sources of virgin steel, made from iron ore rather than recycled – is likely to be determined in a matter of days, with the Department for Business and Trade now actively pondering nationalisation.
The upshot is that even as Britain contends with a trade war across the Atlantic, it is now working against the clock to secure the future of steelmaking at Scunthorpe.
The talks between the government and Jingye broke down last week after the Chinese company, which bought British Steel out of receivership in 2020, rejected a £500m offer of public money to replace the existing furnaces with electric arc furnaces.
The sum is the same one it offered to Tata Steel, which has shut down the other remaining UK blast furnaces in Port Talbot and is planning to build electric furnaces – which have far lower carbon emissions.
These steel workers could soon be out of work
However, the owners argue that the amount is too little to justify extra investment at Scunthorpe, and said last week they were now consulting on the date of shutting both the blast furnaces and the attached steelworks.
Since British Steel is the main provider of steel rails to Network Rail – as well as other construction steels available from only a few sites in the world – the closure would leave the UK more reliant on imports for critical infrastructure sites.
However, since the site belongs to its Chinese owners, a decision to nationalise the site would involve radical steps government officials are wary of taking.
They also fear leaving taxpayers exposed to a potentially loss-making business for the long run.
The dilemma has been heightened by the sharp turn in geopolitical sentiment following Donald Trump’s return to the White House.
The incipient trade war and threatened cut in American support to Europe have sparked fresh calls for countries to act urgently to secure their own supplies of critical materials, especially those used for defence and infrastructure.
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Gareth Stace, head of UK Steel, the industry lobby group, said: “Talks seem to have broken down between government and British Steel.
“My advice to government is: please, Jonathan Reynolds, Business Secretary, get back round that negotiating table, thrash out a deal, and if a deal can’t be found in the next few days, then I fear for the very future of the sector, but also here for Scunthorpe steelworks.”
British Steel declined to comment.
UK
Prince Andrew’s Pitch@Palace branded ‘crude attempt to enrich himself’ as Chinese spy documents set to be released
Prince Andrew’s efforts to make money from his Pitch@Palace project have been branded as a “crude attempt to enrich himself” at the expense of “unsuspecting tech founders”, as new documents may shed more light on what he and his team have been attempting to sell.
Today is the deadline for documents to be released relating to Prince Andrew‘s former senior adviser Dominic Hampshire and his interactions with the alleged Chinese spy Yang Tengbo.
In February, an immigration tribunal heard how the intelligence services had contacted Mr Hampshire about Mr Yang back in 2022. Mr Yang helped set up Pitch@Palace China, a branch of the duke’s scheme to help young entrepreneurs.
The alleged Chinese spy, Yang Tengbo, has links with Prince Andrew
Yang Tengbo. Pic: Pitch@Palace
Judges banned Mr Yang from the UK, saying his association with a senior royal had made Prince Andrew “vulnerable” and posed a threat to national security. Mr Yang challenged that decision at the Special Immigration Appeals Commission (SIAC).
Since that hearing, media organisations have applied for certain documents relating to the case and Mr Hampshire’s support for Mr Yang to be made public. SIAC agreed to release some information of public interest. It is hoped they may include more details on deals that he was trying to do on behalf of Prince Andrew.
So what do we know about potential deals for Pitch@Palace so far?
In February, Sky News confirmed that palace officials had a meeting last summer with tech funding company StartupBootcamp to discuss a potential tie-up between them and Prince Andrew relating to his Pitch@Palace project.
The palace wasn’t involved in the fine details of a deal but wanted guarantees to make sure it wouldn’t impact the Royal Family in the future. Sky News understands from one source that the price being discussed for Pitch was around £750,000 – there are, however, reports that a deal may have stalled.
Photos we found on the Chinese Chamber of Commerce website show an event held in Asia between StartupBootcamp and Innovate Global, believed to be an offshoot of Pitch.
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Documents, released in relation to the investigations into Mr Tengbo, have also shown how much the duke has always seen Pitch as a way of potentially making money. One document from 21 August 2021 clearly states “the duke needed money at the time, and saw the relationships with China through Pitch as one possible source of funding”.
But Prince Andrew’s apparent intention to use Pitch to make money has led to concerns about whether he is unfairly using the contacts and information he gained when he was a working royal.
Norman Baker, former MP and author of books on royal finances, believes it is “a crude attempt to enrich himself” and goes against what the tech entrepreneurs thought they were signing up for.
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He told Sky News: “The data given by these business people was given on the basis it was an official operation and not something for Prince Andrew, and so in my view, Prince Andrew had no right legally or morally to take the data which has been collected, a huge amount of data, and sell it…
“And quite clearly if you’re going to sell it off to StartupBootcamp, that is not what people had in mind. The entrepreneurs who joined Pitch@Palace did not do so to enrich Prince Andrew,” he said.
Rich Wilson was one tech entrepreneur who was approached at the start of Pitch@Palace to sign up, but he stepped away when he spotted a clause in the contract saying they’d be entitled to 2% equity in any funding he secured.
He feels Prince Andrew is continuing to use those he made a show of supporting.
He said: “It makes me feel sick. I think it’s terrible – that he is continuing to exploit unsuspecting tech founders in this way. A lot of them, I’m quite grey and old in the tooth now, I saw it coming, but clearly most didn’t. And a lot of them were quite young.
“It’ll be their first venture and you’re learning on the trot, so to speak. So to take advantage of people in such a major way – that’s an awful, sickening thing to do.”
We approached StartupBootcamp who said they had no comment to make, and the Duke of York’s office did not respond.
With reports that a deal may have stalled, it could be a big setback for the duke – especially with questions still about how he’ll continue to pay for his home on the Windsor estate now that the King no longer gives him financial support.
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