Closer EU trade ties a ‘strategic necessity’ for UK businesses, Starmer told

Keir Starmer’s government is facing growing pressure to deepen trade relations with the European Union, as business leaders warn that Britain’s post-Brexit trade framework is increasingly failing exporters.

“The Daily Baku” reports that, the British Chambers of Commerce (BCC) has urged Labour to speed up its planned reset with Brussels, arguing that the existing Trade and Cooperation Agreement (TCA) is no longer fit for purpose. According to the organisation, many UK firms — particularly small and medium-sized enterprises — are struggling to maintain or expand sales into the EU.

A survey of nearly 1,000 exporters found that 54% believe the current trade deal, negotiated under Boris Johnson and implemented in 2021, has not helped them trade with the EU. This represents a sharp rise from the previous year, highlighting what the BCC describes as a growing economic drag from Brexit.

Confidence in government support also appears weak. Only four out of 946 firms surveyed felt that official guidance on navigating post-Brexit trade rules was adequate.

Steve Lynch, the BCC’s director of international trade, said that rebuilding economic ties with the EU was no longer optional. “With a budget that failed to deliver meaningful growth, getting the EU reset right has become a strategic necessity rather than a political choice,” he said, adding that companies were finding it harder — not easier — to access their largest export market.

The intervention reflects a broader shift within Labour, where senior figures increasingly acknowledge the economic costs of Brexit. Over the weekend, health secretary Wes Streeting signalled support for closer trade integration with the EU, comments widely interpreted as reopening debate over a customs union — despite Labour’s manifesto ruling out rejoining the single market or customs union.

Several cabinet ministers are believed to favour a more ambitious reset, as the government prepares to make EU relations a central priority in 2026. Labour recently confirmed that the UK will rejoin the Erasmus+ student exchange programme in 2027.

In a report outlining a “business manifesto for the EU reset”, the BCC called for measures to reduce border friction, simplify customs procedures and improve regulatory cooperation, warning that without action, UK exporters risk falling further behind.