Where is post-Brexit Britain?

I always try, and am usually able, to create an overall theme to each post on this blog. There are times, though, and this is one of them, when there is no particular shape to the latest Brexit-related events. Instead, there has been a ragbag of news, but that in itself is revealing of a more general drift.

Brexit still not done

So where to start? Perhaps with that part of Brexit which is still not, in the most basic meaning of the term, ‘done’: Gibraltar. As long ago as April, under the previous government, it was being reported that a deal was finally ‘imminent’, but nothing came of it. Last time I wrote about this, in October, I suggested that completing the deal was a key test of Keir Starmer’s ‘reset’. That wasn’t an unreasonable claim given that, just a few days afterwards, Nick Thomas-Symonds, the EU Relations Minister, said that doing so was “at the heart of” the reset policy. Yet the territory remains in post-Brexit limbo, leading to a large protest against the delays at the end of October.

Some of the urgency has been removed by the latest postponement of the new EU Entry/exit System, but that still leaves an inherently fragile ad hoc arrangement in place. Their fragility is well-illustrated by a row that broke out two weeks ago. In brief, under the ad hoc arrangements, Gibraltarians may enter Spain without having their passports stamped, so long as they have their Gibraltar ID card. However, last Friday fortnight, the Spanish border police instigated a check and stamp regime. It only lasted for a couple of hours before being countermanded by a higher official, but seems to have arisen because the local border commander did not have clear orders about whether or both Schengen area controls should be applied or not.

This is the second time the same local commander has taken this action, apparently from concern that he and his officers may be in breach of EU law by not applying normal controls. That is now a matter for the courts to decide, but it illustrates the consequences of the lack of a clear, formal agreement. Of that, the latest reports suggest only that the barriers to a deal are of a “deeply technical nature”, but that was also said last April.

In the meantime, the entire saga of Brexit and Gibraltar is the subject of an excellent new House of Commons Library Research Briefing by Stefan Fella, which amongst other things serves as a reminder of the complex issues which were obvious from the outset, but which Brexiters denounced as ‘Project Fear’. There are also signs of the situation receiving more media coverage in the UK, with a BBC Radio Four documentary on ‘the Rock that Brexit forgot” airing this week.

Reset still barely started

It may be that an agreement about Gibraltar will emerge this month or, perhaps more likely, in the new year, and be a sign of, so to speak, a reset of the reset, which began with some energy but appears to have foundered since. That seems possible because there is a sense in which any real progress was always likely to be deferred until the new EU Commission, and the second presidency of Ursula von der Leyen, were confirmed. This has now happened and, relatedly (though not necessarily directly so), Starmer has been invited to meet with EU leaders next February, the first time a British Prime Minister has done so since the UK left the EU.

That meeting is billed as being focused on security and defence issues, but the already planned EU-UK summit, which will take place next year, is likely to have a wider remit, taking in trade and regulatory relationships. A good indication of what the EU agenda for this might be was provided recently in a Bruegel policy briefing written by Ignacio García Bercero, a significant figure in the world of EU trade policy. Many of the issues it covers will be familiar to readers of the blog, and without rehearsing them here the main point I would make about the document is that it is deeply pragmatic, in the sense of recognizing both the constraints of UK and EU red lines and the possibilities that remain despite them.

That’s important because there are people, on both sides of the Brexit divide, who persist in saying that there is no prospect at all of improvements, whether they ascribe this to EU ‘punishment’ or a kind of Brexit ‘hair-shirtism’. On the remain side, in particular, there is sometimes the impression given that, for so long as Starmer remains committed to the ‘hard Brexit’ negotiated by the Tories, nothing can change. But that ignores the way that, even within the Frost-Johnson agreements, there was scope for a closer relationship, illustrated by the non-binding Political Declaration which they signed, even though they chose not pursue it. In other words, even within hard Brexit there exists a range of hardness.

Obviously, the significance of that shouldn’t be overstated. There’s a big gulf between the softest of hard Brexits and the hardest of soft Brexits. But there is an agenda, that in the past I’ve called ‘maximalist’, which whilst still ‘hard Brexit’ is different to Johnson-Frost, of the sort articulated by Peter Foster in the UK and, now, by García Bercero. Of particular relevance is a point the latter makes early on, about the apparent dropping of the UK red line against ECJ involvement under the Labour government. More generally, his key point is that “a repetition of Brexit discussions can be avoided if there is political will to explore the margins of flexibility around the red lines.”

Political will (or won’t)?

That clearly begs the core question of whether there is such a political will. If voices like García Bercero’s hold sway within the EU then, from that side, the answer might be yes. But what about the UK? One sign of a new seriousness might be the announcement of a new post of a second Permanent Secretary to the Cabinet Office, with a specific focus on the EU, and undertaking a ‘sherpa’ role there. The interview panel will, with depressing irony, be chaired by Gisela Stuart, who chaired the Vote Leave campaign, though not because of that but because she is now the First Civil Service Commissioner. It can only be wondered what attributes she will prioritise for the post, but the appointment will be made by Starmer.

At all events, the appointee is expected to be a heavyweight figure, and it is hard to see the point of creating this role unless it reflects real political commitment to the reset. That said, my general observation about this government is that it seems to place a premium on creating structures (delivery groups etc.) as if these, in themselves, solve problems. They don’t, although they may be a necessary precondition of doing so, and in particular they don’t, in and of themselves, create political will.

In this particular case, it remains to be seen what the political will is as regards a youth mobility scheme (YMS) which, even if under some different label, is evidently going to be a, if not the, key issue for the EU (a “threshold issue” as García Bercero calls it). We’ve repeatedly seen the Labour government dismiss this on the absurd grounds that it would somehow amount to ‘free movement of people’, but the question is how intransigent it will be.

As always, the problem is that Labour remains deeply neuralgic about anything relating to immigration. This was illustrated by Starmer’s response to the latest immigration figures, which he denounced as showing that “Brexit was used … to turn Britain into a one nation experiment in open borders”. It’s nonsense, and what’s worse is that it is the same nonsense that Farage is talking. What actually happened was that Brexit was used to create exactly what the Brexiters, including Farage, said they wanted, a wholly UK-determined immigration policy which used a points system set according to the needs of the UK economy.

For various reasons, not all economic, that led to an increase in the net migration figure, and a re-distribution of the countries of origin of immigrants away from the EU. That figure is now falling, also for various reasons, but these include new restrictions which are doing profound damage, especially to social care and to universities. What the Labour government needs, as Professor Jonathan Portes, the leading academic expert on this policy area, argues, is to be honest about immigration.

That raises bigger issues than that of a YMS with the EU, but honesty about that would, just in itself, be desirable. It’s an oversimplification, but not a huge one, to say that Britain left the single market, specifically, to appease public hostility to immigration. The country is paying a substantial economic price for that, yet without even assuaging the hostility. It is certainly freedom of movement of people, rather than a commitment to regulatory divergence, which explains why Starmer’s government will not even entertain the idea of single market membership, and is apparently willing to go on paying that price.

So the question now is whether that extends even to the YMS, with Starmer sacrificing things he undoubtedly wants, and the country undoubtedly needs – most obviously an SPS deal – on the altar of this immigration fetish. Just how high a price are we all meant to pay to pander to the sensibilities of a noisy minority who will never be satisfied anyway? It’s not even as if agreeing a YMS would take much political courage: opinion polls suggest 58% of the public think it is a good idea, and only 10% that it is a bad idea. Some reports in the last few days (£) suggest the government is coming round to agreeing some version of it, and my guess is that this will be true. If so, it would have been far better in terms of creating conditions for a maximalist reset to have accepted the idea wholeheartedly rather than being dragged to it reluctantly.

Meanwhile, things don’t stand still

With the new Commission in place, and Trump installed in the White House to concentrate minds, next year is probably going to be the crucial one in determining whether or not there is going to be any kind of substantive reset in UK-EU relations (though it would take longer than that to be brought to fruition). Even for that to happen needs some urgency of purpose to be brought to bear. For the reality is that any reset is not happening against a static background. That is most obvious in relation to the broad geo-political situation. But it’s also the case UK-EU relations are themselves changing, irrespective of any negotiations about them.

Two recent examples illustrate this (others can be found in the latest UKICE regulatory divergence tracker). One is the only now emerging realization that new EU product safety rules mean that British (in the sense of Great Britain) companies selling goods to the EU (including Northern Ireland) need a ‘responsible person’ within the single market to confirm compliance. As with so much of the Brexit-created red tape this will impact most heavily on small businesses, and it comes into force at the end of next week. At a stroke, this is a new non-tariff barrier to trade with the EU, and a thickening of the Irish Sea border. It won’t, to my understanding, be helped by the government’s Product Regulation and Metrology Bill because the issue isn’t alignment with EU standards, it is the certification of compliance (i.e. a version of the issue, discussed many times on this blog, that ‘alignment doesn’t mean access’).

A second example is that the EU Carbon Border Adjustment Mechanism (CBAM) is now beginning to bite (£) on British exporters to the EU, again with small businesses worst affected. In some ways it is a similar issue to the product safety one, in that exporters now need to provide evidence of the embedded carbon content of their products. However ultimately it will also mean not just reporting but, if necessary, tax being levied on that content.

Both of these examples are potentially within the scope of a UK-EU reset, though the word ‘potentially’ is doing a lot of heavy lifting. The first of them might conceivably be dealt with through formal dynamic alignment (note the tentative formulation). Less tentatively, because it is within the scope of the existing Trade and Cooperation Agreement, the second of them could be addressed by linking both UK-EU Emissions Trading Systems (ETS) and CBAMs (the UK version has yet to be created). Linkages of these are two different, though potentially related things, as García Bercero says. That is, it might be possible to link either, both, or neither (it’s also worth noting, as trade expert Sam Lowe explains, that these different possibilities could have different implications for the UK’s relationship with Trump’s US).

Everything is connected

Although I’ve bracketed that last point, because in a sense it’s a technicality, it does indicate the deep inseparability of all of the issues facing post-Brexit UK. That is to say, the more-or-less economic questions of terms of trade, including regulatory barriers to trade, with the EU cannot ultimately be separated from geo-political issues of the UK’s relations with the rest of the world. This means that not only do discussions of UK-EU relations take place within a dynamic landscape (e.g. new EU regulations) but also they do so as part of the UK’s positioning in an international order which is itself rapidly changing, and not only because of Trump’s coming presidency.

There are many moving parts in this, but they mean that my argument in a post at the end of the summer that the government needs a post-Brexit strategy already looks inadequate. I talked there as if UK-EU relations are a discrete issue. I’m not sure I actually meant to imply that but, at all events, it is now quite obvious that such are relations are imbricated in the entirety of UK economic, industrial, foreign and defence policy. It is equally obvious that articulating what this means for the UK is an urgent task.

There are limited signs that Starmer understands this, especially in the major speech he gave on foreign policy at the Lord Mayor’s Banquet this week. In it, he did at least attempt to do what Olivia O’Sullivan, Director of the UK in the World programme at Chatham House recently urged and “make an energetic case” to voters explaining the domestic importance of foreign policy and international relations. Whether it was as ‘energetic’ as needed is another question, but it was certainly an attempt to make the case. However, the content was anodyne, and didn’t give any real sense of the choices and trade-offs the UK faces.

By that, I don’t so much mean the headline reports that Starmer denied there was any need to choose between Trump’s US and the EU. That was entirely unsurprising, not least because, at this point, it’s not yet clear exactly what those choices may be (a situation which is unlikely to last, however). Rather, what was missing was an acknowledgment that Brexit has de-anchored the UK internationally, and created new constraints on its options. Instead, there were airy platitudes about Britain being “a strong, still point in a changing world.” Which, as politics professor Simon Usherwood of the Open University put it “leaves us... somewhere. With all the talk of a reset, there remains minimal evidence of a plan on Europe, in either abstract or concrete terms, which intrinsically weakens the ability to pursue whatever course is taken.”

Where is post-Brexit Britain?

It’s not enough. At the very least, there needs to be an explicit acknowledgment that the immediate post-Brexit strategy of ‘Global Britain’, already effectively abandoned by the previous government, does not provide a framework for the present government’s policy decisions. Which in turn requires specifying the framework which does. That could and should mean that where closer relations with the EU come into conflict with other demands it is the former which will be prioritised now. That wouldn’t be outrageous. Only the other day Foreign Secretary David Lammy said, as he has in the past, that a European reset is the UK’s “number one priority in foreign policy”.

Yet Starmer did not say or even imply that. Why not? Is this government policy or not? Without such consistency, Starmer’s promise that his country will be a reliable, dependable, and predictable international actor is virtually meaningless, since it gives no insight into where its priorities lie. How, then, can its actions be predicted? Conversely, unless relations with the EU are prioritised, how seriously should anyone, most notably the EU, take the reset?

That wouldn’t, in itself, entail an argument to ‘reverse Brexit’ by seeking to rejoin the EU in any form (which Starmer again ruled out in his speech). But it would entail publicly acknowledging that Brexit has created new problems, not new opportunities. Doing so would attract a flaying from the pro-Brexit commentariat, but would chime with public opinion by recognizing both that Brexit has not been a success and that there isn’t much public appetite to return to the Brexit battles in the immediate future*. In the longer run, admitting that lack of success would also be a necessary step to re-visiting Brexit itself, of course, but even those who want to rejoin at the earliest possible moment need to recognize that, whatever ‘earliest possible’ means, the UK needs, at least, an interim strategy.

However, I don’t really expect Starmer will do any of this. At best, he may put more energy into reset discussions with the EU in the coming year. At worst, he will drift along without much happening to show for the reset apart from warmish words. In that sense, the ragbag of this fortnight's Brexit events reflects more than my failure to find any shape to them. Rather, it captures the shapelessness of Labour’s post-Brexit policies and, more fundamentally, the shapelessness of the UK’s post-Brexit condition. It is a grim irony that on one edge of Europe there is war and civil unrest in countries which dearly wish to anchor their place in the world by joining the EU whilst here, on the other edge, we have given that prize away in order to drift into confusion.

The final words of Starmer’s Lord Mayor’s Banquet speech were that “Britain is back.” He didn’t say where.

 

 

*That is, support for holding another referendum doesn’t begin to approach a majority until posited as ten years hence. Interestingly, put at that time scale, Reform voters are the most supportive of it.  Admittedly the polling data I cited in the link is over a year old, so things may have changed but I haven’t found anything more recent on the specific question of timescales.

I can’t even bring myself to discuss the cretinous attempt to resurrect ‘Mutual Enforcement’ as an ‘alternative arrangement’ for Northern Ireland `(the Allister Bill) but may come back to it next time. It isn’t going to pass, but it does have a purpose in the context of the forthcoming ‘consent vote’ under the Windsor Framework in the Northern Ireland Assembly. For now, see the Best for Britain Blog on this, which notes, correctly but over-politely, that “the notion that such a process of mutual enforcement is remotely achievable is remarkably misguided.”