On Thursday 7th of July 2024, votes were cast in the general election in the United Kingdom to elect their new members of Parliament. Polling results reveal that after 14 years in power, the Conservatives suffer a crushing defeat to the Labour Party, earning only 120 seats in Parliament to the Labour Party’s 412 seats.
The Labour party’s manifesto promises great changes are expected relative to the Conservatives’ past agenda. European Diplomats, as a commercial diplomatic consultant group, has closely monitored the elections in the United Kingdom in order to understand and explain what the Labour Party’s victory in the election means for businesses and enterprises wishing to pursue a relationship with the European Union.
The original orchestrators of Brexit have left the Conservative British political scene: Boris Johnson is writing columns for the Daily Mail, Dominic Cummings is reportedly organising a new party to replace the Conservatives, Michel Gove did not stand for re-election in 2024, and Nigel Farage has moved to the fringes with the Reform UK party. As such, the Labour Party’s victory, combined with the noted absence of leading Vote Leave campaigners in Parliament, can be viewed as an opportunity for the United Kingdom to re-enter negotiations with the European Union. Indeed, Keir Starmer, the new Prime Minister, did advocate for a Second Brexit Referendum in his role as Shadow Brexit Minister under Theresa May’s government in 2019. It is not much of a stretch to argue that in his role as Prime Minister, Starmer will advocate for closer ties with the European Union. Furthermore, the negative impacts of Brexit on the British economy suffice as evidence to justify revisiting and perhaps reversing the process. The government’s Office for Budget Responsibility confirmed in March 2024 that the effects of Brexit will reduce the United Kingdom’s long-term productivity by 4%.
However, whilst Starmer has hinted at developing a closer relationship with the European Union, he has also indicated that his government will not contest the Brexit Referendum. The Labour Party does indeed want to repair the fractured relationship with the European Union, with plans to remove trade barriers, create mutual recognition agreements and develop new security agreements. However, they still stand against European Union membership, customs union, and single market. Keir Starmer also faces a difficult task at hand in approaching the effects of Brexit, including handling the important social, geographical, and economic rifts made more evident by Brexit. He will not be able to pursue policies regarding the European Union without causing some kind of uproar on either sides of the rift. Indeed, regardless of Starmer’s stance on Brexit, his government will have to tread carefully moving forward in their attempt to balance the negative impacts of Brexit, as well as the current energy and economic crisis, and the backlash of the population who did in fact vote to leave the European Union.
Furthermore, the European Union itself is less than likely to welcome the United Kingdom back with open arms. The director of the Centre for European Reform, Charles Grant, told the Guardian that: “EU leaders will tell him [Starmer] that if he wants things out of the EU – such as a deal on veterinary standards to reduce border checks on food, animals and plants – he will have to accept some of their asks. […] The EU believes in bargaining and trade-offs, which a Starmer government will have to go along with if it wants to improve the EU-UK relationship.” As such, whilst the Labour victory indicates that relations with the European Union are set to improve, or at least that there is the intention to improve them, it also indicates that the path to business with the union will remain difficult and limited by politics. Businesses need to learn and stay updated with the policies and regulations between the United Kingdom and the European Union. The services provided by European Diplomats aim to help businesses navigate the turbulence of this political background by facilitating business to government relations.
European Diplomats provides access to markets in education and technology which can be used to the advantage of business growth in the European Union. Our upcoming Future of Migration Consortium and Future of Education Consortium are representative of the networking and business innovation opportunities found within our group. Through the collaboration of policymakers, businesses, and experts, these consortia allow to explore European Union policies and provide the opportunity to learn how to shape future regulations.
