Explainer

The UK-EU Reset Negotiations

The notion of having a strong and mutually beneficial relationship with our neighbours in the EU is a perfectly reasonable aspiration, and one that polling has consistently shown is popular with the British voter. However the approach of the current Labour government is not one of a mutually beneficial partnership, but of increasing servitude.

Britain Unbound strongly believes that good ideas and policies are not unique to a particular people or country, and can be seen being implemented by different countries across the globe. The EU has implemented well considered policies in the past, and will no doubt do so again in the future; but to blindly align fully with all EU policies in a given sector also requires the UK to implement policies that are clearly wrong for the UK economy. The decision in 2016 to leave the EU was borne from a belief that, on the whole, EU policies had a net negative effect on the UK.

If another country happens to develop a policy that makes sense for the UK to replicate and adopt then the UK should consider doing so, whether or not it is first conceived of in Belgium or in Borneo. The UK should also retain the freedom to not implement policies when they will have a detrimental effect on the UK economy.

Overview

In July of 2024 the United Kingdom held a General Election, with the Labour Party winning a resounding majority. Within their manifesto commitments, they included a desire to strengthen the post-Brexit relationship with the European Union - whilst committing to not rejoin the EU itself, nor its Single Market and Customs Union. Party spokesmen also made numerous interventions in response to opposition speculation, that the party position was against the notion of “dynamic alignment” - where the UK would sign into law the need to match EU laws and regulations in a given area in perpetuity, effectively putting the EU in charge of government policy within that area.

In the negotiations, speeches, press releases and published documentation since July of 2024, the UK government led by Sir Keir Starmer has over time increased the range of policy areas within the remit of the EU reset negotiations, seemingly in response to EU demands to increase sacrifices purely desired by EU member states.

As of March 2026, the scope of the EU reset negotiations reportedly include but are not limited to:

  • Trade and Regulatory Alignment
    • Sanitary and Phytosanitary Measures (SPS), reducing border checks
    • Food and agriculture rules
  • Student mobility
    • Free movement of young people under 30
    • Rejoining the EU Erasmus versus Turing + student exchange scheme
    • Giving EU students domestic instead of international university charges
  • Border control
    • Coordination on migration management and returns
    • Law enforcement cooperation (e.g. Europol links)
  • Defence
    • New UK–EU Security and Defence Partnership
    • Participation in EU defence funding schemes (e.g. SAFE and the Ukraine loan scheme)
  • Legacy Brexit issues
    • Extended access to UK fisheries
    • Windsor Framework/Northern Ireland
    • ECHR
  • Energy and Climate
    • Linkage of UK and EU emissions trading systems (ETS)
    • Net Zero and energy security cooperation
  • Governance, legal oversight & constitutional issues
    • Role of the European Court of Justice (ECJ) in EU law interpretation
    • Proposed “compensation clause” on UK backtracking

The Labour government's argument in favour of the approach taken to the EU reset, is that they are only looking to re-align where it is in the UKs best interests to do so - however the analysis of the data for the sectors on the list paint a different picture.

It is clear the UK government now aims to modify the Manifesto promises in response to EU demands to align the UK ever more closely on trade, business, energy and defence, with limited Parliamentary scrutiny. Furthermore, The UK failed to insist on nothing being agreed until everything is agreed, and thus has embarked on a series of surrenders to EU demands. Yet the EU has great negotiating discipline and refuses finally to agree on individual items until it has agreed all its aims.

The Position of Britain Unbound

Britain Unbound is not opposed to working closely with our friends, neighbours and allies. Furthermore, it is in the UKs best interests to have strong mutually beneficial relationships with other nations, especially those within close proximity geographically. However we believe that this close relationship should never require subjugation to external decisions and laws, made by those with zero democratic involvement from the British people.

It is a demonstrable truth that the best outcome for the EU in any negotiation with the UK, is to get everything that it asks for with nothing for the UK in return. The argument could well be made that any friend that seeks to take advantage of the UK in this manner is not really a friend at all, but the EU cannot be blamed for taking advantage of a situation where the UK government seem to wish to give away concessions in negotiations, merely for the opportunity to give away more at a later date.

The UK has a significant trade deficit with the EU, which means that the UK buys more from EU member states than the EU buys from the UK in return. This should not be surprising in some respects, especially in relation to goods, as the UK is an island nation with limited resources and output capability compared to the larger EU. However that does mean that from a negotiating position the UK has a stronger hand - as the EU has more to lose in terms of trade output were the UK to purchase more goods from other nations around the world.

With this context, Britain Unbound will constantly hold the Government to account in supporting and providing scrutiny, criticism and comment on negotiations, including within Parliament where the current use of Statutory Instruments will ultimately be supplemented by an EU Reset Bill.

It is the belief of Britain Unbound, that the EU considers a competitive and successful UK to be an existential threat to the continued existence of the EU, and so ultimately aims to stifle UK competition through locking the UK back into Single Market laws and rules - making the UK a rule taker of the EU regulatory regime.

Fishing in UK Waters

The UK immediately conceded an additional 12 years of high fishing quotas for the EU, worth at least £6bn. This unfortunately means a further 12 years where the UK does not rebuild its fishing fleet, and does not have increased catch landings to build a larger fish processing and food manufacturing industry. This concession was given and immediately signed as an amendment to the existing UK-EU trade agreement, with no benefit to the UK received outside of the promise to enter negotiations for further concessions to EU demands.

Youth Opportunities

At the insistence of the EU, and contrary to the initial strong positions taken by the UK Government, the negotiations reportedly now include free movement of the under-35s, allowing free entry of many young people into the UK to access the more competitive jobs market. The large imbalance in population size between the UK and EU leaves the UK vulnerable to unreasonable pressures on housing, jobs and other facilities.

Erasmus+ Student Exchange

The UK government has agreed to pay in the region of £800 Million a year to rejoin the Erasmus+ student exchange scheme, with a 30% discount in the first year of 2027. This is a significant increase in costs over our previous membership fee in the EU - and from historical evidence from our previous membership, the scheme benefitted many more EU students than it did UK students. The post-Brexit Turing scheme, set up to replace the Erasmus+ membership, helped more UK students and cost much less, as was no longer burdened with underwriting the cost of European students at UK universities. Erasmus+ is an EU only scheme, and entails UK taxpayers paying for EU students

Defence Procurement

The Labour government engaged with the EU post-election on becoming a non-EU participant in the Security Action For Europe (SAFE) EU financial instrument, whose purpose is to provide EU member states with access to up to €150 Billion in centrally secured low interest loans to rapidly scale up investment in defence procurement by doing so jointly on common technologies and platforms - in other words EU member states buying the same tanks and missiles collectively and in bulk to secure them cheaper, using loans secured by the EU itself using the richer net contributing member states as guarantors of the loans to secure lower interest rates.

Non-EU countries were invited to participate in this scheme, but not to benefit from the centrally secured loans - their invitation was based on being able to participate in the joint procurement (benefitting from the discounts from the bulk orders), and also being able to bid to supply parts of those joint procurement orders. However the scheme had very strict rules on procurement, as the only items eligible to be purchased in the scheme were those with over 65% of the components coming from EU suppliers. These strict Rules of Origin (RoO) were intended to not only force EU member states to jointly invest in EU defence companies (even if they are not the best suppliers on the market), but also to force the EU away from its over-reliance on the US defence industry.

The negotiations between the UK and EU on SAFE participation collapsed in 2025, reportedly due predominantly to an overly high demand for the UK to pay for the pleasure to participate, with a price tag in the multiple Billions of pounds. This price tag, coupled with the requirement for the UK to then only invest in EU defence technology instead of its own UK technology and industry, was seemingly too high a price to pay. However the conversation has not gone away, and SAFE participation is reportedly still in the mix in the negotiations, despite the significant negative ramifications were the UK to take part.

However the part of SAFE participation that was not actively discussed at the time - and should have been - was how participation would have effectively put the EU in charge of UK defence procurement decisions and wider UK defence infrastructure, for decades to come. By controlling what could be purchased, and by insisting on those systems being designed, built and controlled by the EU, the UK would be unable to extricate itself from overall EU control for multiple decades while those platforms and systems were in operation.

The EU-UK Security and Defence partnership

This is so far outside the Treaties and offers flexible discussions between the UK and EU. It is more words than deeds. The UK already has formal partnership and joint mission arrangements through NATO with the leading European countries. The main aim should be to avoid anything that conflicts with NATO and to avoid anything that puts our defence under EU law.

Emissions Trading Scheme

The UK has its own damaging Emissions Trading scheme to make energy dear and to tax high energy using industries in the name of net zero. The EU scheme is similar but has a higher carbon price or tax. Joining the EU scheme will push up energy prices, accelerate de industrialisation, and lock us in, making a change of policy more difficult.

SPS

The government has published a draft text of an SPS Agreement to ease sanitary checks on food products. This locks the UK into a wide range of EU Single market laws, making us a rule taker. The restrictive and costly EU laws will apply to all companies in the affected sectors including small businesses only working for the UK market and including exports to non EU destinations. There will be an EU charge for the service. It is difficult to see what benefits there will be for those who do export to the EU. There are dangers to UK innovation in farming and food production, to meeting specifications for non EU markets and to our balance of trade. The UK is a very small exporter of farm products to the continent but a large importer. The aim of the EU will be to boost its exports by more.

E-gates

Promises of easier entry to EU destinations for UK tourists have floundered on delays to the new technology and the EU decision that each member state needs to negotiate an e gates solution with the UK rather than the EU as a whole

Conclusion

A weak negotiating stance from the UK government can over ever result in a bad outcome for British citizens. The UK will effectively be back in the Single Market in a number of key sectors. The UK will be a rule taker. It will be making substantial payments to the EU. The UK never asks for EU payments to secure access to the lucrative UK market. The balance of trade in goods with the EU will deteriorate further as we knock out our oil, gas, refined oil products and diesel and petrol cars through net zero bans and high energy prices. These were leading export items.

Britain Unbound Team
Britain Unbound Team