Business Secretary Peter Kyle has declared that the European Union is “where the magic happens”, as he unveiled a new deal with Brussels, hinting at further alignment ahead.
Peter Kyle backed the Prime Minister’s drive to rebuild ties with EU, now indicating Sir Keir Starmer could be willing to go further, offering additional concessions in pursuit of deeper economic, energy and defence links with European allies.
The UK left the EU in 2020 | PA
Heading into the 2024 General Election, Labour promised to reshape the UK’s relationship with Brussels, but its manifesto made no mention of achieving that through rule alignment – as per the UK’s severance from the EU in 2020.
The Business Secretary said: “The public did vote for a government that had a reset with the EU as its core foreign policy in the election. So I think the public have always been looking forward, and they’re not really nostalgic for the past”.
He framed the reset as a response to global instability, citing trade friction with the US around the Chagos Islands and rising tariffs, and the ongoing conflict in Ukraine as reasons for a “pragmatic approach” to EU relations.
Mr Kyle added: “They certainly want an assertive British approach that’s distinctive, it is confident, but it is also respectful of what most people would assume are our values, and to see them in action.
“I think that’s the way we’re approaching the EU. In every relationship we have as a country, the relationship only works when we need to see it on both sides. So having two sides that are aligned, that’s where the magic happens”.
Business Secretary Peter Kyle is at the forefront of developing EU relationships
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GETTYBritain is already committed to following Brussels’ rules on animal and plant health, electricity and carbon pricing, while EU fishing fleets have been given a 12-year guarantee of access to UK waters.
At the Munich Security Conference earlier this month, the PM suggested he was willing to go further.
On Wednesday, a new cooperation agreement with the European Commission covering competition law was agreed with future arrangements on artificial intelligence, life sciences, climate, drones and robotics all touted.
Brexit supporters fear the Government is ripping up the achievements of Britain’s departure from the bloc after nearly 50 years of membership.
Nigel Farage, leader of Reform UK, told The Telegraph: “Mr Kyle is being totally dishonest. The manifesto was clear and said no going back to the single market.
“This realignment means that we are shadowing Brussels in a growing number of areas – betrayal is the word”.
Former Brexit negotiator Lord David Frost, added: “Each time Labour ministers go to Brussels they signal another negotiating concession. It’s clear they are now preparing to breach their manifesto quite blatantly by joining one aspect after another of the EU’s single market.
“No one voted for this. Labour should focus on rebuilding the economy from the disasters they are causing rather than hoping the EU will somehow run to their rescue”.
Peter Kyle’s Brussels agenda was about ensuring the EU would not forget Britain in its “Made in Europe” scheme to avoid British manufacturers being shut out of European supply chains.
The programme would impose tough requirements for locally sourced components in goods such as cars, cutting dependence on China and the US in the process.
Britain and Japan are among those seeking firm assurances that companies with deep roots in the European market will not find themselves frozen out.
Mr Kyle said: “No one knows more than the EU that when you work with like-minded partners, you solve challenges. We should always be focused in this particular moment, even more so in times gone past, in focusing on solutions rather than creating barriers”.
“This is the moment at which we try to focus on areas of new collaborations, not trying to restrict the ones that we already have,” he added.
“Hopefully you’ve seen from the tone that I’ve taken when I’m here that I’m really seeking where the alignment is and where the opportunities are”.
Labour’s 2024 manifesto insisted Britain will stay outside of the EU, with no return to the single market, the customs union, or freedom of movement.
However, it also committed to improving the relationship with European partners, “resetting the relationship and seeking to deepen ties”.

