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Starmer, Keir

Keir Starmer's Brexit Reset: A Mobility Scheme, Trade Deals, and a New Economic Strategy

Strategic Insights

— 2 min read

Sir Keir Starmer is set to agree a youth mobility scheme with the European Union, in line with the EU's rules on free movement, despite his previous crackdown on migration. This move is part of his broader post-Brexit reset of relations with the bloc, which includes closer cooperation on defense and a potential trade deal with the Gulf states. The UK's leader is prioritizing a trade deal with the EU, with the agreement expected to bring about much closer cooperation on European defense and a more advanced role for the UK. The government's strategy is driven by Sir Keir's vision of the UK as a trading hub between major economies, with a focus on delivering economic growth and creating opportunities.

Key Takeaways:

  • The UK is set to agree a youth mobility scheme with the EU, allowing people aged 18-30 to travel and work freely in the EU for two years, similar to the scheme available between the UK and Australia.
  • The post-Brexit reset deal includes much closer cooperation on European defense, with the UK set to play a more advanced role.
  • The UK will seek a trade deal with the Gulf states, which could unlock billions in funding for economic growth in the UK.
  • The deal will be controversial, with both Brexiteers and Remainers expected to be unhappy, but the government believes it will be a good deal and a significant success.
  • Research by Dr Huanjia Ma and Dr Matt Lyons shows that the US trade deal has halved the impact of Trump's "liberation day" tariffs, a major victory for the prime minister.
  • The India deal is expected to increase bilateral trade by £25.5 billion, with £15.7 billion of that expected to come from rising exports from UK businesses into India.
  • As a result of the India deal, workers will benefit from wages growing by a further estimated £2.2 billion each and every year in the long term, and the UK's GDP is expected to increase by £4.8 billion (0.1 per cent) each and every year in the long term.

Statistics:

  • The youth mobility scheme between the UK and EU could allow up to 60,000 people to travel and work in the EU each year (estimated).
  • The US trade deal has halved the impact of Trump's "liberation day" tariffs (research by Dr Huanjia Ma and Dr Matt Lyons).
  • The India deal is expected to increase bilateral trade by £25.5 billion.
  • £15.7 billion of this expected to come from rising exports from UK businesses into India.
  • Workers' wages are expected to grow by an additional £2.2 billion each and every year in the long term.
  • The UK's GDP is expected to increase by £4.8 billion (0.1 per cent) each and every year in the long term.

Sources:

  • The Independent
  • Dr Huanjia Ma and Dr Matt Lyons (research)
  • Sir Keir Starmer (interview with The Independent)
  • Rachel Reeves (interview with BBC)

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