Khan to argue “Brexit isn’t working” and call for “greater alignment” with Europe

Sadiq Khan will argue that “Brexit isn’t working” and call for a “pragmatic debate” about rejoining the EU single market and customs union.

In a speech this evening, the London mayor is expected say: “I simply can’t keep quiet about the immense damage Brexit is doing. Ministers seem to have developed selective amnesia when it comes to one of the root causes of our problems. Brexit can’t be airbrushed out of history or the consequences wished away.”

Khan will tell attendees at his annual set-piece speech at Mansion House: “After two years of denial and avoidance, we must now confront the hard truth: Brexit isn’t working. It’s weakened our economy, fractured our union and diminished our reputation. But, crucially, not beyond repair.

“We need greater alignment with our European neighbours – a shift from this extreme, hard Brexit we have now to a workable version that serves our economy and people. That includes having a pragmatic debate about the benefits of being a part of the customs union and the single market.”

Khan is expected to declare that the loss of more than 80,000 EU workers has put a “huge strain” on the capital’s hospitality and construction industries, adding: “The number of businesses in our city experiencing at least one skills shortage has now risen to almost seven in ten.”

“Devolving powers to London and allowing us to create a regional shortage occupation list would be one way to give businesses the ability to attract and retain talent in the areas they need it most,” the mayor is expected to say.

In June last year, Khan described Brexit as “the biggest piece of self-inflicted harm ever done to a country” and confirmed that he supported the UK rejoining the single market, though he added: “I don’t speak for the national Labour Party.”

In a speech to the Centre for European Research (CER) think tank last June, Keir Starmer set out the party’s policy on the EU. The Labour leader said: “Under Labour, Britain will not go back into the EU. We will not be joining the single market. We will not be joining a customs union.”

He added: “Nothing about revisiting those rows will help stimulate growth or bring down food prices or help British business thrive in the modern world.” Starmer also confirmed that Labour would not restore freedom of movement.

Earlier this month, Shadow Levelling Up Secretary Lisa Nandy rejected calls to re-enter the customs union as a “fantasy” that “won’t take the country forward”.

Starmer is today visiting Belfast to take part in talks aimed at resolving issues with the Northern Ireland protocol. In his speech to the CER in June, the Labour leader argued that the “starting point” to “make Brexit work” is to “sort out” the Northern Ireland protocol.

He said: “Labour would eliminate most border checks created by the Tory Brexit deal with a new veterinary agreement for agri-products between the UK and EU. And we will work with business to put in place a better scheme to allow low-risk goods to enter Northern Ireland without unnecessary checks.”

Khan was re-elected as London mayor in 2021 having first taken office in 2016. He was reselected as Labour’s candidate for mayor in December ahead of the 2024 election. London voted strongly in favour of remaining in the EU at the 2016 referendum, with only five of the capital’s 33 boroughs voting to leave.