Sadiq Khan has increased pressure on Labour leader Sir Keir Starmer, suggesting that Britain should not shy away from discussions about rejoining the EU single market.

Khan’s remarks come as the Prime Minister has categorically ruled out re-entry, insisting that it is unlikely to happen in his lifetime. Starmer has also drawn a firm line in his post-Brexit relations with Brussels, ruling out a return to the single market as well.

However, the Mayor of London believes re-entering the common market shouldn’t be dismissed so easily, even though he acknowledges the difficulty of doing so in the near future. While Khan admits the prospects of rejoining are slim for now, he still insists, “It’s something we shouldn’t be scared to talk about.”

Brexit Review Sparks New Conversations

The government’s own economic analysis suggests that rejoining the single market could boost the UK’s GDP by 3.5% compared to the existing EU trade deal.

However, this economic benefit would come with significant trade-offs, including the reintroduction of freedom of movement, a principle that Starmer has strongly opposed.

Khan, nevertheless, argues that tearing down barriers with Britain’s closest trading partners is essential for long-term growth. Speaking at a government investment summit, he said the debate about the single market is “something we shouldn’t be scared to talk about.”

“The current Brexit deal we have comes up for review next year. I’m hoping, unlike last time, there will be closer alignment, rather than divergence.”
Sadiq Khan

Khan emphasized the importance of collaboration on a range of issues, from trade to mobility, highlighting the need for deeper discussions. “We should be looking at a whole host of issues and talking about them — whether it’s a youth mobility scheme, whether it’s seeing what we can do to bring people closer together,” Khan said.

Economic Reset With Europe Uncertain

The Prime Minister has made restoring the UK’s relationship with the European Union a priority. Yet, his red lines — specifically his refusal to rejoin the single market or customs union — limit how much progress can realistically be made. Khan’s position stands in contrast, calling for a more open discussion about re-establishing closer ties.

Starmer, speaking at the same investment summit, admitted that Brexit had negatively impacted the UK’s international reputation. “Whichever way people campaigned and voted on Brexit, one of the consequences to my mind was that the impression was given that the UK was more interested in turning in on itself and becoming more isolated,” Starmer said.

He reiterated that Britain’s role on the global stage had been damaged and emphasized the need for a “reset on the international stage” that coincides with efforts to boost investment.

In his keynote speech, Starmer said the UK needed to rebuild trust and reaffirm its role as a reliable global partner. “People want to know that Britain can be a stable, trusted, rule-abiding partner,” he stated. “But during the whole circus that followed Brexit, the last government made a few people less sure about that.”

Future of Youth Mobility Schemes

Starmer has yet to signal any willingness to negotiate a youth mobility scheme with Brussels, which would allow young Britons to live and work in the EU. However, Khan has openly backed the idea, arguing that such a scheme would benefit both the UK and the EU.

At the investment summit, Khan told the PA news agency, “I’m quite clear that all successful countries do the most trade with their nearest neighbors.” He added that proximity to the EU market of over 500 million people is an advantage the UK should not neglect.

Khan praised recent diplomatic efforts by the Prime Minister, acknowledging the progress made in mending relations with European leaders, including the French president, Italian prime minister, and German chancellor. “The good news is the prime minister spent a lot of the last three months visiting friends in Europe,” Khan noted.

As the review of the Brexit deal approaches, the pressure is mounting on Starmer to clarify his position on deeper integration with the EU, a topic that may become increasingly difficult to avoid.