Business Secretary Peter Kyle has reportedly declared that aligning with European Union rules is “where the magic happens”, as he unveiled a new deal with Brussels and hinted at further concessions ahead.

The Express understands Kyle believes the British public had moved on from Brexit, having thrown his weight behind Sir Keir Starmer‘s drive to rebuild ties with the bloc. He is also said to have indicated the Prime Minister could be willing to go further still, offering additional concessions in pursuit of deeper economic, energy and defence links.

Labour went into the last election promising to reshape the UK’s relationship with Brussels — but its manifesto made no mention of achieving that through rule alignment.

Asked whether voters were on board with the direction of travel, Kyle reportedly said: “The public did vote for a government that had a reset with the EU as its core foreign policy in the election. So I think the public have always been looking forward, and they’re not really nostalgic for the past.”

Huge U-turn

Kyle framed the reset as a response to global instability, citing trade friction with the US and the ongoing conflict in Ukraine as reasons for a “pragmatic approach” to EU relations, as per the report.

He added: “They certainly want an assertive British approach that’s distinctive, it is confident, but it is also respectful of what most people would assume are our values, and to see them in action.

“I think that’s the way we’re approaching the EU. In every relationship we have as a country, the relationship only works when we need to see it on both sides. So having two sides that are aligned, that’s where the magic happens.”

Ground already ceded

The reset has already moved quickly. Britain has committed to following Brussels rules on animal and plant health, electricity and carbon pricing, while EU fishing fleets have been given a 12-year guarantee of access to UK waters.

At the Munich Security Conference, Sir Keir put down a marker that he was open to going further, and Kyle’s Brussels visit reinforced that message. On Wednesday he put his name to a new cooperation agreement with the European Commission covering competition law, with future arrangements on artificial intelligence, life sciences, climate, drones and robotics all floated as possibilities.

‘Betrayal’, says Farage

For Brexit supporters, the trajectory is alarming. Many fear the Government is systematically dismantling what was achieved when Britain left the EU after nearly 50 years of membership.

Nigel Farage, the Reform leader, told The Telegraph: “Mr Kyle is being totally dishonest. The manifesto was clear and said no going back to the single market. This realignment means that we are shadowing Brussels in a growing number of areas. Betrayal is the word.”

Lord Frost, the former Brexit negotiator, said: “Each time Labour ministers go to Brussels they signal another negotiating concession. It’s clear they are now preparing to breach their manifesto quite blatantly by joining one aspect after another of the EU’s single market. No one voted for this. Labour should focus on rebuilding the economy from the disasters they are causing rather than hoping the EU will somehow run to their rescue.”

‘Made in Europe’ scheme

At the centre of Kyle’s Brussels agenda was gaining a foothold in the EU’s “Made in Europe” scheme — a programme that could shut British manufacturers out of European supply chains by imposing tough requirements for locally sourced components in goods such as cars, cutting dependence on China and the US in the process, reports The Telegraph.

Britain and Japan are among those seeking firm assurances that companies with deep roots in the European market will not find themselves frozen out.

“No one knows more than the EU that when you work with like-minded partners, you solve challenges,” Kyle said. “We should always be focused in this particular moment, even more so in times gone past, in focusing on solutions rather than creating barriers.”

He was emphatic that the UK was not chasing “free access” to EU markets. “This is the moment at which we try to focus on areas of new collaborations, not trying to restrict the ones that we already have,” he said.

When pressed on what the UK might have to give up in return, Kyle gave little away. “Hopefully you’ve seen from the tone that I’ve taken when I’m here that I’m really seeking where the alignment is and where the opportunities are,” he said.

What the manifesto promised

Labour’s 2024 manifesto was unambiguous: “Britain will stay outside of the EU. There will be no return to the single market, the customs union, or freedom of movement.” It committed to cutting trade barriers through a veterinary agreement, mutual recognition of professional qualifications and a deal covering touring artists.

Yet it also left room for interpretation: “We will be confident in our status outside of the EU, but a leading nation in Europe once again, with an improved and ambitious relationship with our European partners. We will reset the relationship and seek to deepen ties with our European friends, neighbours and allies.”