Starmer finally understands the damage caused by Brexit – and is ready to fix it

The Labour leader has criticised the ‘wild promises’ of the Brexiteers as he prepares to introduce a youth mobility scheme for young workers. The next step is to get the UK back in the customs union, writes Chris Blackhurst

At last, Labour is waking up to the damage done by Brexit and seems intent on doing something about it.

There is political pragmatism involved, which is that a clear majority of voters now say they regard leaving the EU as a mistake. For a party desperate to put distance between themselves and Reform, plus the Tories, this has obvious merit. It’s a yawning ideological divide – and one that is simply argued.

Of course, there is the past to contend with, when Labour went along with the decision to exit, conscious that the Brexiteer Tories were making inroads in its blue-collar heartlands. There is also the present, which is that Sir Keir Starmer and Rachel Reeves insist they were and are listening to business, when virtually the entire business community was and is anti-Brexit – and worse, they went and imposed tax rises that have hit businesses hard.

Still, they do seem, finally, to have come round to the idea that Brexit was a catastrophic mistake economically, one that was self-imposed and Britain would be far better off if relations with the EU were repaired and barriers against the free movement of goods and people were scrapped.

Starmer this week lambasted the “wild promises” made by Brexit campaigners and said the UK was “still dealing with the consequences today, in our economy, and in trust”. He added: “The idea that leaving the EU was the answer to all our cares and concerns has clearly been proved wrong.”

This being Starmer, as ever he injected a note of fence-sitting caution, emphasising that he would “always respect” the outcome of the referendum.

David Lammy, the deputy prime minister, was more forthright, saying that Turkey, which is in a partial customs union with the EU, was “seemingly benefitting and seeing growth in their economy”. He said that rejoining the EU customs union was “not currently where we are” but that it was self-evident that Brexit had “badly damaged the economy”.

The first step towards even a partial customs union, could be, ought to be, a youth mobility scheme designed to enable the easy passage of young British and EU citizens so they can live and work in each other’s countries. It’s an opportunity that has been denied to Britons since we departed and at the same time, businesses will be able to recruit the workers they need and plug the gaps they cannot fill domestically.

The youth scheme is therefore a win-win and what is more, finds approval with more than 70 per cent of voters, a figure that Labour, given its current low rating, would be foolish to ignore.

Talks between the government and its EU counterparts are taking place. There will be caps placed on the time people are allowed to remain – said to be two years – and on the numbers involved, likely to be in the tens of thousands.

Nick Thomas-Symonds, the Cabinet Office minister leading the negotiations with Europe, is due to meet his EU equivalent, Maroš Šefčovič, in Brussels on Wednesday to discuss progress.

The signs then are positive. If it goes ahead, the pact will be hailed as paving the way for agreements in other areas over the coming months. From employers, there will be a cry of “hallelujah”! For six years, their cries and pleas have fallen on deaf ears.

It’s tentative. Labour is hamstrung by a manifesto pledge not to return to the customs union or single market in this parliament. There is a body of opinion, too, that for some members of the EU this would be equally unwelcome.

Nevertheless, a new direction is being set. But Labour is taking a gamble – it’s prepared to lose Leave supporters in the hope that sufficient of the electorate would back the move, that this would outweigh the refuseniks and make the switch worthwhile.

Polling suggests that would be the case. Inevitably, though, there is the storm that will be unleashed. Reform and the Tories are bound to scream that democracy is being undone, that Labour is intent on taking us back into Europe via some sort of back door. Out would come all the old arguments about the EU suppressing British cherished freedoms, that once again we were allowing ourselves to be tied to the Brussels yoke.

To which the riposte should be that it is hard to see what independence from the EU has brought us. It’s true that in some instances, such as AI, we have pursued a path of lighter tough regulation but the gains have been marginal – other EU nations are matching Britain where development and investment is concerned.

We’ve struck some trade deals that we could not otherwise have secured. In truth, those agreements amount to barely anything – they do not anywhere near replace what has been lost, trade-wise, from ditching the EU.

Much will be made of the timing, that here is Britain trying to curb the tide of immigration from across the Channel while allowing in foreigners holding an EU passport with open arms. That is why the limits are so important and the government must be able to demonstrate that permanent net migration will not be adversely affected.

The claim will be made that the EU is suffering economically, that Germany, Europe’s largest economy, is in trouble, and that France is also struggling. That is so, but this is about providing tangible benefits for Britain, for our businesses – by restoring membership of a vast free trading bloc that in a suicidal moment we chose to abandon.

Starmer and his colleagues must hold their nerve. They can rest assured, that in this instance, business is right behind them.