The Mayor of London, Sir Sadiq Khan, has called for the United Kingdom to rejoin the European Union, asserting that the capital’s economy has suffered significantly since Brexit. He emphasized that London’s economy is currently £30 billion smaller than it would have been had the UK remained part of the EU.
Khan highlighted the adverse effects of Brexit, noting a loss of 230,000 jobs in London and an average decrease of £3,500 in household income. He criticized the misinformation propagated by proponents of Brexit, stating, „I see on a daily basis the damage Brexit has done to not just London, but Londoners, the damage economically, socially and culturally.“ He further asserted, „I’m quite clear in terms of what needs to happen, which is, we should join the European Union.“
Proposed Steps for Rejoining the EU
In his remarks, Khan outlined a five-step plan for the UK to re-establish its relationship with the EU. He suggested that the first step would involve resetting relations with Brussels, a process he believes has already begun under Sir Keir Starmer’s leadership. Following this, he proposed closer alignment with EU regulations, rejoining the Customs Union, and subsequently the Single Market, all within the current parliamentary term.
Khan emphasized that the Labour Party should commit to rejoining the EU in their manifesto for the next general election, stating, „a vote for Labour means we would rejoin the European Union.“ He underscored the economic ramifications of Brexit, referencing research from the National Institute for Economic and Social Research and Goldman Sachs, which indicated that the UK economy could have expanded by an additional 10 percent without Brexit.
Impact on Employment and Immigration
The Mayor pointed out that the number of EU citizens residing in London has decreased from over 840,000 in 2019 to approximately 700,000, indicating that around 140,000 individuals have left the city. He noted that the construction and hospitality sectors have been particularly affected by this decline.
Khan also criticized the immigration policies implemented by Home Secretary Shabana Mahmood, advocating for a system grounded in „control, compassion and contribution.“ He expressed support for former Deputy Prime Minister Angela Rayner, who has raised concerns regarding the current immigration approach.
International Reactions and Political Context
French Foreign Minister Jean-Noel Barrot recently indicated that the EU would welcome the UK back into the Single Market if it chose to return. His comments were made during an event in Berlin, where he appeared alongside Germany’s Foreign Minister Johann Wadephul. This invitation comes as Starmer’s government seeks to address the economic fallout from Brexit.
Starmer and Chancellor Rachel Reeves are advocating for closer ties with the EU, a move that has garnered support from businesses affected by trade disruptions and increased regulatory burdens. Historically, Labour has been cautious about discussing Brexit due to concerns about alienating voters in the North and Midlands, often referred to as the „Red Wall.“ However, recent polling suggests a growing sentiment among the public that Brexit was a mistake, prompting the government to make the issue a focal point in upcoming elections.
Challenges and Future Prospects
Despite France’s previous resistance to the UK rejoining the Single Market, Barrot remarked, „Look at our British friends, the UK, who have been talking about reset, who are now talking about alignment, and some of whom mention the term customs unions. So let us say to our British friends that if they stand ready to come back to the Single Market, with all associated privileges and duties, they will be met with open arms.“ This statement reflects a potential shift in the EU’s stance towards the UK.
Starmer’s administration has increasingly vocalized the economic repercussions of Brexit, particularly the disruption of trade between Northern Ireland and Great Britain, as well as with the broader European market. The severing of trade ties has resulted in a substantial financial impact on the UK economy, as reported by the Office for Budget Responsibility.
While Labour has ruled out rejoining the Single Market or the Customs Union, a growing faction within the party, especially among London MPs, is advocating for the establishment of a new customs union with the EU. Chancellor Reeves has positioned closer EU ties as a cornerstone of her strategy to rejuvenate the UK’s struggling economy, asserting that the country would align with EU regulations when it serves national interests.
Economic Implications of Brexit
Reeves has warned of the deep economic damage inflicted by Brexit, citing estimates that suggest the UK economy could be as much as 8 percent smaller than it would have been had the country remained in the EU. She stated, „Let me say this directly to our friends and allies in Europe. This government believes that a deeper relationship is in the interests of the whole of Europe.“
The Institute of Directors has welcomed efforts to reduce barriers stemming from Brexit but has also cautioned against committing to a broad array of EU regulations in exchange for short-term economic benefits.
Bildquelle: Foto von Jean-Luc Benazet auf Unsplash
