Keir Starmer is set to face fresh battles over his EU “reset” with his plans to lay a bill that could lead to closer regulatory ties with Brussels.
The legislation aims to introduce an alignment mechanism for the agrifoods and electricity trading deals agreed with EU leaders but still under negotiation.
The bill will hand ministers powers to go beyond what the UK has agreed so far, giving future administrations the power to potentially align standards in other sectors and keep pace with new EU regulation.
The government plans for the bill to run in parallel with the negotiations with Brussels, meaning MPs will start voting on it before the deal is finalised.
Government sources said they were braced for major battles but it would be an opportunity for Starmer to defend closer ties with Europe as a way of reviving the UK economy. The bill is expected to be introduced in the next few months and carried over into the next parliamentary session.
The Liberal Democrats have already vowed to amend the bill to bring forward a binding vote on a customs union. More than a dozen Labour MPs rebelled when the Lib Dems held their last opposition day vote on the issue.
Opposition politicians are likely to raise significant objections if the bill hands ministers sweeping powers, potentially leading to obstruction in the House of Lords.
The Lib Dem Cabinet Office spokesperson, Lisa Smart, said: “On a bill of this scale and scope, it would be a shameful betrayal of voters to simply sketch out the vague thrust then fill the details out later with the stroke of a ministerial pen.”
Starmer’s spokesperson said on Monday it was possible the UK could negotiate further sector-by-sector access – often likened to a “Swiss-style” deal – and that it might be prepared to pay for it.
“The deals we’re striking involve huge benefits to British taxpayers by supporting British businesses, backing British jobs and putting more money into people’s pockets, and in total, they’ll add nearly £9bn to our economy by 2040,” they added.
“We’ve always been clear that some of this work will involve trade-offs, but as a sovereign nation, we’ll make the sensible, pragmatic choices that are in the national interest and stand to benefit the UK public.”
Ed Davey, the Lib Dem leader, has said his party would use the bill as a chance to force Labour MPs to take a position on an even closer relationship with Europe. Photograph: House of Commons
Starmer signalled on Sunday that the UK may seek sectoral deals to deepen access to the single market, beyond what was agreed with EU leaders in May, saying this was preferable to a customs union that could undermine other trade deals.
The prime minister signed the political agreement to pave the way for a new agrifoods deal. Known as an SPS agreement, it removes red tape on food and drink exports, lifting some routine checks on animal and plant products completely.
In return, the UK will accept some dynamic alignment on EU food standards and a role for the European court of justice in policing the deal.
Both sides have expressed hope that the final deal could be signed by the second half of this year. The UK has also begun negotiating to join the EU’s internal electricity market, but European leaders have confirmed they expect the UK to pay for access. Tensions over money have already scuppered negotiations for UK participation in a €150bn security action for Europe (Safe) fund.
Starmer told the BBC on Sunday that he had once argued for a customs union but “a lot of water has now gone under the bridge” and it would undermine deals with India and the US. “We are better looking to the single market rather than the customs union for our further alignment,” he said.
The comments were seen as a response to ministers, including Wes Streeting, who have suggested the UK would benefit from exploring rejoining the customs union. The health secretary told the Observer it would bring “enormous economic benefits”.
The Conservatives said they would insist on the final details of the negotiations with the EU having full parliamentary scrutiny. “Keir Starmer came into government with no plan and he lacks the backbone to tackle the serious issues facing our country. So he is trying to reopen old wounds over Brexit instead,” said the shadow foreign secretary, Priti Patel.
“In doing so, he is preparing to give himself vague, sweeping powers to change our relationship with the EU in the vain belief it will make him more popular.”
The Lib Dem leader, Ed Davey, said his party would use the bill as a chance to force Labour MPs to take a position on a closer relationship with Europe.
The party plans an amendment to place a duty on the government to begin negotiations with the EU on establishing a bespoke UK-EU customs union by 2030. It also said it would seek to secure a meaningful vote on this amendment at either committee stage or report stage.
A Cabinet Office spokesperson said: “The UK-EU reset is improving our diplomatic, economic and security cooperation and will be worth £9bn to the UK economy by 2040. We will legislate to deliver on this and further details of the bill will be announced in due course.”
