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 concerns from businesses and European capitals while also navigating internal party divisions.

The Labour leader's stance comes amid growing calls from some Labour backbenchers, union leaders, and even some cabinet ministers for a more ambitious reset of the UK-EU relationship, potentially including rejoining the customs union. These calls gained traction following Liberal Democrat parliamentary moves last year that resulted in a non-binding vote on the issue.

However, Starmer has made it clear that rejoining the customs union is not currently a priority. He told the BBC's Laura Kuenssberg that such a move would undermine what he considers a key achievement of the past year: securing trade deals with countries like the US and India, with further agreements planned in the Middle East.

Instead, Labour's focus is on forging a "closer relationship" with the EU's single market. The specifics of this relationship remain to be fully defined, but it suggests a potential emphasis on regulatory alignment and trade facilitation measures.

This shift in emphasis can be seen as a strategic move to balance competing interests. By prioritizing single market access over customs union membership, Starmer aims to appeal to businesses seeking closer economic ties with Europe while avoiding the political challenges associated with a more radical departure from the current Brexit arrangements.

The Conservative government, under the current Prime Minister, is also engaging in its own recalibration of post-Brexit relations. Downing Street has indicated that closer economic ties with the EU will be considered as part of annual bilateral talks, rather than solely during this year's formal review of the UK-EU trade deal. This suggests a willingness to explore areas of cooperation and address concerns raised by businesses and European partners.

The evolving positions of both Labour and the Conservative party highlight the ongoing debate about the optimal relationship between the UK and the EU following Brexit. While fundamental differences remain, there appears to be a growing consensus on the need for closer economic cooperation, even if the specific mechanisms for achieving this remain a subject of contention. The coming months will likely see further debate and negotiation as both parties seek to define their respective approaches to post-Brexit relations with Europe.