Keir Starmer is under mounting pressure to reassess the UK’s post-Brexit stance, as fresh figures reveal the nation is undeniably worse off five years after leaving the European Union. Critics accuse the prime minister of having his “head in the sand” and failing to acknowledge Brexit’s economic fallout.

As he prepares to meet EU leaders for key negotiations on Monday, Starmer is being urged to reconsider Britain’s stance, with opposition figures calling for a bolder approach to reset relations with Brussels.

Liberal Democrat leader Sir Ed Davey urged the government to drop its red line on an EU customs union, arguing that a more pragmatic approach would strengthen the UK’s negotiating position, especially in light of Donald Trump’s potential return to power.

“The prime minister must acknowledge that the circumstances have changed,” Davey said, accusing both Labour and the Conservatives of maintaining a “conspiracy of silence” over the UK’s strained relationship with Europe.

Criticism has mounted over the government’s lack of ambition in upcoming EU negotiations, with Starmer ruling out key measures such as a youth mobility scheme and reaffirming his red line against rejoining the EU or its single market.

Concerns were further exacerbated by a recent parliamentary response revealing that the government has refused to conduct an audit on Brexit’s economic impact. Critics say this refusal undermines transparency and accountability.

Former Conservative minister Dominic Grieve and ex-Green Party leader Caroline Lucas, who co-chair the European Movement UK, called on the prime minister to explore “associate membership” of the EU as a means to redefine Britain’s place within Europe.

Grieve and Lucas warned: “The European Union is evolving, and with the risks presented by Donald Trump — from an emboldened far right and trade wars to rolling back on climate commitments — the urgency to accelerate this transformation has never been greater.”

They highlighted Franco-German proposals to reform the EU, which include a flexible, multi-tiered system allowing candidate countries such as Ukraine and the Western Balkans to integrate at different levels. The plan also presents an opening for the UK to rebuild trust and restore cooperation with the bloc through associate membership.

Meanwhile, the British Chambers of Commerce (BCC) has urged the government to use the planned EU reset to spur economic growth, warning that businesses are being stifled by excessive red tape.

“Firms are being held back by a complex web of red tape and regulatory burdens. This is ramping up costs, so improving our trading relationship with the EU could provide the impetus to growth needed to transform the dour outlook many are facing.”
William Bain, head of trade policy at the BCC

Calls For Transparency On Brexit Costs

Starmer’s government is also facing accusations of “negligence” after refusing to calculate the official cost of Brexit to the UK economy. Nearly five years since leaving the EU, critics argue that ministers are avoiding scrutiny over the economic damage caused by severing ties with Britain’s largest trading partner.

Estimates suggest that Brexit could be costing the UK economy an eye-watering £100 billion a year, yet the Treasury has declined to conduct an official review.

Asked whether the government would assess the impact of Brexit, shadow chief secretary to the Treasury Darren Jones responded: “No. The Government is focused on resetting the relationship with the EU, which will support economic growth, the central mission of the government.”

Former deputy prime minister Lord Michael Heseltine suggested the government’s reluctance to assess Brexit’s impact stems from fear that it would prompt discussions about rejoining the EU.

Meanwhile, SNP MP Stephen Gethins, who requested the assessment, slammed the government’s refusal, describing Brexit as “one of the biggest shocks to have hit the UK economy.”

As Brexit’s long-term consequences continue to unfold, pressure is mounting on Starmer to provide clarity on the UK’s economic trajectory and ensure that future EU negotiations deliver meaningful improvements for businesses and citizens.