Sir Keir Starmer’s reset with the European Union will do almost nothing to boost trade, a think tank has claimed.
The group said that Labour risks leaving British businesses facing higher costs, while EU regulations will only bring limited economic gains.
They added that Britain’s economic ties with Brussels were already close to its natural ceiling, with “little headroom” left for any post-Brexit rebound.
It stated that, as a result of the proposed agreement, the UK could raise imports by no more than six per cent, while imposing “significant new costs” on British business.
European rules would force businesses to adapt, highlights the think tank.
It added: “A ‘reset’ which focuses on a regulatory realignment with the EU may not be essential for the UK’s economic growth. Policymakers would be better looking to domestic economic reform […] or trading opportunities beyond the EU.”
The Prime Minister secured new arrangements with Brussels on several key issues, including defence, migration and trade.
The UK also secured a 12-year fishing agreement with the European Union, which the opposition has widely criticised.
Brexiteers have described the arrangement as a “surrender”, with Nigel Farage suggesting it could even be “the end” of Britain’s fishing industry.
Elspeth MacDonald, who serves as chief executive of the Scottish Fishermen’s Federation, even described the accord as a “horror show”.
The Government previously said that it believes the agreement could lower food prices and increase choice on supermarket shelves.
Some foods that were previously prevented from being sold in the EU since Brexit have been returned to European shelves, including British sausages and Aberdeen Angus burgers.
When speaking at the UK-EU Summit at Lancaster House earlier this year, the Prime Minister said: “It’s time to look forward. To move on from the stale old debates and political fights to find common sense, practical solutions which get the best for the British people.
“We’re ready to work with partners if it means we can improve people’s lives here at home.
“So that’s what this deal is all about – facing out into the world once again, in the great tradition of this nation.
“Building the relationships we choose, with the partners we choose, and closing deals in the national interest. Because that is what independent, sovereign nations do.”
GB News has reached out to the Department for Trade and Industry for a comment.