Starmer urges UK to tackle Brexit impact, accept EU trade-offs for economic renewal

Starmer says Brexit has 'significantly hurt' UK economy, calls for closer EU ties

British Prime Minister Keir Starmer on Monday stressed that the UK must confront the economic damage caused by Brexit and accept necessary trade-offs to foster a closer relationship with the European Union.

Speaking in central London, he said, “For economic renewal we have to keep reducing frictions. We have to keep moving towards a closer relationship with the EU, and we have to be grown-up about that, to accept that that will require trade-offs.”

Starmer highlighted that Brexit had “significantly hurt our economy” and emphasised the need to maintain market confidence and reduce inflation to support growth and stability.

He pointed to ongoing negotiations on a proposed SPS deal, which seeks to remove border checks on plant and animal products, and discussions on an emissions trading scheme as areas where progress is being made with the EU.

The speech also served to defend last week’s tax-hiking budget, with Starmer describing the measures as “fair, necessary and fundamentally good for growth.” He acknowledged that ministers had considered, but ultimately rejected, a manifesto-breaking increase in the top rate of income tax.

Starmer also defended Chancellor Rachel Reeves against allegations of misleading the public over the nation’s finances, noting that the Budget had created additional “headroom” for economic stability. He added that the Office for Budget Responsibility had recently reported an improved fiscal position, showing a £4.2 billion surplus rather than a deficit.

The Prime Minister said the Budget was a “moment of personal pride” and reiterated his commitment to defending it, even amid criticism over the UK’s post-Brexit economic challenges and stalled talks with Brussels on the EU’s €150 billion Security Action for Europe loans-for-weapons programme.