The Liberal Democrats are pushing for a significant shift in the UK's relationship with the European Union, calling on Labour figures to abandon their opposition to rejoining the EU single market and customs union. This appeal comes as the 10th anniversary of the Brexit referendum approaches next week.

Party leader Ed Davey is set to urge Andy Burnham and other Labour leadership hopefuls to drop what he describes as “red lines” that prevent closer economic integration with the EU. In a forthcoming speech, Davey will argue that Labour’s reluctance to revisit these commitments is holding the country back and benefiting political rivals such as Nigel Farage’s Reform UK.

Davey’s proposal includes immediate talks to establish a more ambitious post-Brexit deal with the EU, centered on rejoining the single market. This would entail reinstating free movement of people between the UK and EU member states, a provision the Conservatives have strongly opposed. The Lib Dems’ latest stance marks a marked shift from their more cautious approach in the last election campaign, signaling a clearer endorsement of renewed EU membership ties.

In addition to economic alignment, Davey will advocate for creating a European security council designed to address shared challenges, including escalating threats from Russia and perceived inconsistencies in U.S. foreign policy under former President Donald Trump.

The call for a stronger UK-EU partnership comes amid ongoing debates within Labour. Although Labour leader Keir Starmer has confirmed the continuation of the second EU reset summit scheduled for July 22, sections of his party remain resistant to rejoining key EU frameworks. Labour’s manifesto for the next general election pledges not to return to the EU, the single market, or the customs union.

The European Union has expressed openness to the UK rejoining the European Economic Area (EEA), which would enable access to the single market. However, EU officials have ruled out any deal that excludes free movement of people, rejecting UK proposals for a model allowing common regulatory standards on goods but excluding unrestricted migration.

The Liberal Democrats’ emphasis on ending what Davey calls Labour’s “torpor and timidity” signals growing tensions within the opposition regarding the future of Britain’s EU relations. Davey asserts a more engaged stance could move UK politics beyond stalled negotiations and offer a clearer path toward economic and security cooperation with Europe.