Sir Keir Starmer said shoppers, tourists and businesses will benefit from the newly agreed UK and EU deal and stressed the European Union deal shows “Britain is back on the world stage” following agreements with both India and the US in recent weeks. But the Prime Minister faced accusations of “surrender” over the extension of fishing rights until 2038 and an agreement to “dynamic alignment” with Brussels on areas including food standards and energy.
The Government claimed the post-Brexit “reset” will cut red tape for travellers and businesses, boosting the economy by £9 billion by 2040. Under the deal struck with Brussels, more tourists will be able to use e-gates at airports in Europe, pet passports will be introduced for UK cats and dogs, and businesses can sell burgers and sausages into the bloc again.
Sir Keir met European Commission President Ursula von der Leyen and European Council President Antonio Costa at a summit in Lancaster House, London, to seal the deal. The Prime Minister said: “It’s time to look forward. To move on from the stale old debates and political fights to find common sense, practical solutions which get the best for the British people.”
He said the deal “gives us unprecedented access to the EU market, the best of any country” outside of the bloc or the European Free Trade Association. Sir Keir claimed it would result in “lower food prices at the checkout” by making trade with the EU cheaper and easier and would drive down energy bills by co-operating with Brussels.
Mrs von der Leyen said: “We are turning a page. We are opening a new chapter in our unique relationship.” She insisted the UK’s decision to sign the agreement, which will involve closely following Brussels’ rules, was an expression of British sovereignty.
In striking the deal, the Prime Minister has had to balance the Government’s desperate search for measures to grow the economy with the backlash he will inevitably face from Brexit-supporting voters and political opponents. The acceptance of some form of youth mobility programme, allowing young EU citizens to live, work and study in the UK and vice versa, has been politically controversial because of the Government’s drive to cut net migration.
Officials insisted the scheme being proposed would not breach the Government’s red line of not allowing the return of free movement, pointing to similar deals with Australia and New Zealand. The “reset” deal also respects the Government’s other red lines of not returning to the customs union or single market, officials said.
The Tories branded the Lancaster House gathering a “surrender summit”. Conservative Party leader Kemi Badenoch said: “We’re becoming a rule-taker from Brussels once again. And with no details on any cap or time limits on youth mobility, fears of free movement returning will only increase. This is very concerning.”
Reform UK’s Nigel Farage said the 12-year deal on access for European boats “will be the end of the fishing industry”. Mr Farage’s deputy leader Richard Tice said: “Labour surrenders. Brussels bureaucrats win again.”
But business groups welcomed the deal, with the British Retail Consortium’s Helen Dickinson saying it “will help keep costs down”. Confederation of British Industry chief executive Rain Newton-Smith said: “After the turbulence of the last decade, today’s summit marks a leap forward in the EU-UK relationship.”
The UK’s new deal with the EU marks a “turning point” that will boost UK businesses and help ease cost pressures for hospitality firms, industry groups have said. The new deal was widely welcomed across business sectors for helping cut red tape and reducing checks on food exports, while also freeing up the movement of young people to help with staffing and hiring.
But trade unions and businesses also said it was “just the beginning”, with further details to be ironed out. Economists said they were also doubtful that it would be a significant shot in the arm for the economy or the UK’s public finances.
Shevaun Haviland, director general of the British Chambers of Commerce (BCC), said: “Today’s summit marks a turning point in UK/EU relations which puts our trade relationship at the forefront of our partnership going forward. For four years, businesses have fought hard to sustain sales to the EU in the face of a rising tide of costs and paperwork which has severely dented their competitiveness.
“A permanent deal to remove unnecessary checks on food and drink exports in both directions is a huge boost; it will cut costs, reduce waste and increase sales.” She added: “This summit also saw encouraging movement on other issues that have long been a thorn in the side of many firms. A commitment to focus on securing a youth mobility scheme and linking our emission trading schemes will make life simpler and less costly for many businesses.”
UKHospitality said the deal would “help to further increase access to high-quality, affordable food and drink for business and consumers alike”. Kate Nicholls, chief executive of UKHospitality, also cheered the plans to allow a youth experience scheme.
“Not only does it provide economic benefits, but it also provides new opportunities for critical cultural exchange, which ultimately delivers richer experiences for customers,” she said. “I urge both parties to pursue a model with maximum flexibility, and mirroring existing schemes with Australia and New Zealand is a sensible approach.”
But the Institute of Directors (IoD) said while the reset of relations with the EU “heralds a new era of collaboration”, further work was needed. Emma Rowland, trade policy adviser at IoD, said: “We recognise that this is just the beginning.
“With elements not yet set in stone, there will be further effort required to ensure that what has been promised is delivered for the benefit of the UK economy, the business environment and wider British society.”
The Trades Union Congress (TUC) added: “Governments on both sides of the channel must continue with an ambitious approach, including a shared commitment to strong employment rights and collective bargaining.” James Smith, economist at ING, said the deal was a “no game-changer” for the economy.
He said: “Monday’s European deal with Britain is a positive first step, but it won’t massively boost the economy, nor help avoid tax rises in the autumn. Further regulatory alignment might do that and would help boost sterling. But existing UK and EU red lines make that a daunting task.”
What has been agreed in the UK-EU deal?
The UK and the EU have reached a wide-ranging agreement on issues including defence, food and passport checks. Prime Minister Sir Keir Starmer’s Government has claimed his post-Brexit “reset” will cut red tape for travellers and businesses, boosting the economy by £9 billion by 2040. Here is a summary of the key elements of the deal.
Migration
The UK and the EU have reaffirmed their commitment to develop stronger co-operation on the challenges posed by irregular migration, including action to tackle people smuggling. There is a joint commitment to increase relevant information sharing and improve co-ordination.
There will also be joint work to develop “practical and innovative” approaches to reduce irregular migration, including sharing operational information on issues such as returns to third countries. “Possible deterrence mechanisms” will also be explored while established agencies will work together to prevent Channel crossings.
The UK and the EU have also agreed to boost co-operation on border security and tackle the challenges posed by irregular migration.
Fishing rights
An agreement was reached which guarantees access to UK waters for EU fishing vessels until June 2038. There will be no change to current access to fish for coastal communities and no reduction in the British quota or increase in the quota the EU is allowed to catch, it is understood. The UK will continue to agree annual quotas with the EU and Norway and issue licences to determine who fishes in its waters.
Youth mobility
The UK and EU have committed to working towards “a balanced youth experience scheme on terms to be mutually agreed”, with further negotiations required. The planned reciprocal scheme will enable young people in the UK to work, study or volunteer in EU countries for a limited period of time, with the number of permitted participants yet to be agreed.
There is also a stated ambition for the UK to become part of the Erasmus programme, which supports young people in education, training and sports.
Border controls
Discussions will continue on ways to “smooth border management for the benefit of their citizens”, including enabling UK citizens visiting the EU to use automated border control systems known as e-gates. A new system will also make it easier for UK citizens to take pets abroad.
Co-operation on crime
The deal includes boosting law enforcement and judicial co-operation in criminal matters. Potential measures include increasing the sharing of data and information relating to terrorism and other serious crimes.
Cutting red tape
Work will be undertaken to reduce red tape relating to the import and export of food with a view to establishing common sanitary and food safety requirements covering the UK and the EU. This would result in the “vast majority” of animal and plant products moving between the UK and the EU without certificates and controls.
The deal states that the same benefits would be extended to movements between Great Britain and Northern Ireland, through the “interplay” of the Windsor Framework and the new agreement. The agreement means products such as raw sausages can be sold into the EU for the first time since Brexit.
Boost to defence co-operation
An agreed Security and Defence Partnership provides a framework for the UK and EU to strengthen co-operation. The aim is to boost co-operation in a number of areas, including supporting Ukraine, security initiatives, mobility of military materiel and personnel, and space security.
The agreement includes a commitment to regular talks on strategy, “peacebuilding”, crisis management, countering threats and maintaining the resilience of critical infrastructure. The UK and the European Commission will also explore “possibilities for mutually beneficial enhanced co-operation” created by the SAFE instrument, which provides financial assistance to EU countries seeking to procure defence products.
There will also be a move to enhance co-operation relating to both maritime and health security, including a focus on preparedness for future pandemics.
Market access
The possibility of the UK’s participation in the EU’s internal electricity market will be explored as part of a plan to develop broad energy co-operation. Future talks will focus on balancing “rights and obligations and ensure a level playing field”.
Emission trading
The UK and the EU have agreed to work to establish a link between respective carbon markets through existing emission trading schemes. There is also agreement that there should be close co-operation in competition enforcement. The Government said it will save £800 million in taxes and shield British steel from EU tariffs.
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