Prime Minister Keir Starmer has signaled a significant shift in the United Kingdom's approach to its relationship with the European Union following Brexit. Rather than pursuing a return to the customs union, Starmer is focusing on forging a closer relationship with the single market, aiming to align in areas such as food and farm exports, electricity, and emissions trading. This new approach will be addressed through annual bilateral talks, moving beyond the one-off formal review of the current UK-EU deal.

Starmer's stance is intended to reassure businesses, European leaders, and his own party members that the United Kingdom seeks deeper economic ties with Europe without compromising recent trade agreements with other nations. While some Labour backbenchers and union leaders have advocated for more ambitious changes, Starmer maintains that further alignment with the single market is the priority for enhancing trade and cooperation.