Keir Starmer has signaled a shift in Labour's approach to post-Brexit relations with the European Union, prioritizing a "closer relationship" with the single market over rejoining the customs union. This adjustment, revealed in recent statements, aims to address economic ties while navigating the political complexities of Brexit.

The Labour leader's position emerged amid growing calls from some Labour backbenchers, union leaders, and even within the cabinet for a more ambitious reset of the UK-EU relationship, potentially including rejoining the customs union. These calls gained traction following Liberal Democrat initiatives in Parliament last year, culminating in a non-binding vote.

However, Starmer has publicly stated that rejoining the customs union is not currently a priority. He told the BBC's Laura Kuenssberg that focusing on closer ties with the single market aligns with what he views as a key achievement of the past year: securing trade deals with countries like the US and India, with further agreements anticipated in the Middle East.

This shift is being interpreted as an attempt to balance the need for improved economic relations with the EU against the political realities of Brexit. Maintaining a focus on new trade deals allows Labour to demonstrate its commitment to a post-Brexit Britain while simultaneously seeking closer economic alignment with Europe.

The government, under Prime Minister Rishi Sunak, is also reportedly considering closer post-Brexit economic relations with the EU. Downing Street has indicated that these relations will be addressed through annual bilateral talks, rather than solely during the formal review of the UK-EU deal. This approach is seen as a response to political pressures for a more comprehensive Brexit strategy.

The focus on a "closer relationship" with the single market, as opposed to customs union membership, suggests Labour is exploring options that would reduce trade barriers and regulatory divergence without fully reversing Brexit. The specific details of this closer relationship remain to be defined, but are expected to involve negotiations on issues such as standards alignment and mutual recognition of qualifications.

The evolving positions of both Labour and the Conservative government indicate a growing recognition of the need to address the economic consequences of Brexit. While the precise nature of future UK-EU relations remains uncertain, the shift in rhetoric suggests a willingness to explore closer ties within the existing framework of the trade agreement.