LONDON — If there’s one thing Keir Starmer has mastered in office, it’s changing his mind. The PM has been pushed by his backbenchers toward a flurry of about-turns since entering Downing Street just 18 months ago.  Starmer’s vast parliamentary majority hasn’t stopped him feeling the pressure — and has meant mischievous MPs are less worried their antics will topple the government.  POLITICO recaps 7 occasions MPs mounted objections to the government’s agenda — and forced the PM into a spin. Expect this list to get a few more updates… PUB BUSINESS RATES  Getting on the wrong side of your local watering hole is never a good idea. Many Labour MPs realized that the hard way. Chancellor Rachel Reeves used her budget last year to slash a pandemic-era discount on business rates — taxes levied on firms — from 75 percent to 40 percent. Cue uproar from publicans. Labour MPs were barred from numerous boozers in protest at a sharp bill increase afflicting an already struggling hospitality sector. A £300 million lifeline for pubs, watering down some of the changes, is now being prepped. At least Treasury officials should now have a few more places to drown their sorrows. Time to U-turn: 43 days (Nov. 26, 2025 — Jan. 8, 2026). FARMERS’ INHERITANCE TAX  Part of Labour’s electoral success came from winning dozens of rural constituencies. But Britain’s farmers soon fell out of love with the government.  Reeves’ first budget slapped inheritance tax on farming estates worth more than £1 million from April 2026. Farmers drive tractors near Westminster ahead of a protest against inheritance tax rules on Nov. 19, 2024. | Ben Stansall/AFP via Getty Images Aimed at closing loopholes wealthy individuals use to avoid coughing up to the exchequer, the decision generated uproar from opposition parties (calling the measure the “family farm tax”) and farmers themselves, who drove tractors around Westminster playing “Baby Shark.”  Campaigners including TV presenter and newfound farmer Jeremy Clarkson joined the fight by highlighting that many farmers are asset rich but cash poor — so can’t fund increased inheritance taxes without flogging off their estates altogether. A mounting rebellion by rural Labour MPs (including Cumbria’s Markus Campbell-Savours, who lost the whip for voting against the budget resolution on inheritance tax) saw the government sneak out a threshold hike to £2.5 million just two days before Christmas, lowering the number of affected estates from 375 to 185. Why ever could that have been?  Time to U-turn: 419 days (Oct. 30, 2024 — Dec. 23, 2025). WINTER FUEL PAYMENTS  Labour’s election honeymoon ended abruptly just three and a half weeks into power after Reeves made an economic move no chancellor before her dared to take.  Reeves significantly tightened eligibility for winter fuel payments, a previously universal benefit helping the older generation with heating costs in the colder months.  Given pensioners are the cohort most likely to vote, the policy was seen as a big electoral gamble. It wasn’t previewed in Labour’s manifesto and made many newly elected MPs angsty.  After a battering in the subsequent local elections, the government swiftly confirmed all pensioners earning up to £35,000 would now be eligible for the cash. That’s one way of trying to bag the grey vote. Time until U-turn: 315 days (July 29, 2024 — June 9, 2025).  WELFARE REFORM Labour wanted to rein in Britain’s spiraling welfare bill, which never fully recovered from the Covid-19 pandemic.  The government vowed to save around £5 billion by tightening eligibility for Personal Independence Payment (PIP), a benefit helping people in and out of work with long term health issues. It also said other health related benefits would be cut. However, Labour MPs worried about the impact on the most vulnerable (and nervously eyeing their inboxes) weren’t impressed. More than 100 signed an amendment that would have torpedoed the proposed reforms.  The government vowed to save around £5 billion by tightening eligibility for Personal Independence Payment. | Vuk Valcic via SOPA Images/LightRocket/Getty Images In an initial concession, the government said existing PIP claimants wouldn’t be affected by any eligibility cuts. It wasn’t enough: Welfare Minister Stephen Timms was forced to confirm in the House of Commons during an actual, ongoing welfare debate that eligibility changes for future claimants would be delayed until a review was completed.  What started as £5 billion of savings didn’t reduce welfare costs whatsoever.  Time to U-turn: 101 days (Mar. 18, 2025 — June 27, 2025).  GROOMING GANGS INQUIRY  The widescale abuse of girls across Britain over decades reentered the political spotlight in early 2025 after numerous tweets from X owner Elon Musk. It led to calls for a specific national inquiry into the scandal. Starmer initially rejected this request, pointing to recommendations left unimplemented from a previous inquiry into child sexual abuse and arguing for a local approach. Starmer accused those critical of his stance (aka Musk) of spreading “lies and misinformation” and “amplifying what the far-right is saying.” Yet less than six months later, a rapid review from crossbench peer Louise Casey called for … a national inquiry. Starmer soon confirmed one would happen. Time to U-turn: 159 days (Jan. 6, 2025 — June 14, 2025).  ‘ISLAND OF STRANGERS’ Immigration is a hot-button issue in the U.K. — especially with Reform UK Leader Nigel Farage breathing down Starmer’s neck. The PM tried reflecting this in a speech last May, warning that Britain risked becoming an “island of strangers” without government action to curb migration. That triggered some of Starmer’s own MPs, who drew parallels with the notorious 1968 “rivers of blood” speech by politician Enoch Powell. The PM conceded he’d put a foot wrong month later, giving an Observer interview where he claimed to not be aware of the Powell connection. “I deeply regret using” the term, he said. Time to U-turn: 46 days (May 12, 2025 — June 27, 2025).  Immigration is a hot-button issue in the U.K. — especially with Reform UK Leader Nigel Farage breathing down Starmer’s neck. | Tolga Akmen/EPA TWO-CHILD BENEFIT CAP  Here’s the U-turn that took the longest to arrive — but left Labour MPs the happiest. Introduced by the previous Conservative government, a two-child welfare cap meant parents could only claim social security payments such as Universal Credit or tax credits for their first two children. Many Labour MPs saw it as a relic of the Tory austerity era. Yet just weeks into government, seven Labour MPs lost the whip for backing an amendment calling for it to be scrapped, highlighting Reeves’ preference for fiscal caution over easy wins.  A year and a half later, that disappeared out the window. Reeves embracing its removal in her budget last fall as a child poverty-busty measure got plenty of cheers from Labour MPs — though the cap’s continued popularity with some voters may open up a fresh vulnerability. Time until U-turn: 491 days (July 23, 2024 — Nov. 26, 2025).

LONDON — Choosing your Brexit camp was once the preserve of Britain’s Tories. Now Labour is joining in the fun.  Six years after Britain left the EU, a host of loose — and mostly overlapping — groupings in the U.K.’s ruling party are thinking about precisely how close to try to get to the bloc. They range from customs union enthusiasts to outright skeptics — with plenty of shades of grey in between. There’s a political urgency to all of this too: with Prime Minister Keir Starmer tanking in the polls, the Europhile streak among many Labour MPs and members means Brexit could become a key issue for anyone who would seek to replace him. “The more the screws and pressure have been on Keir around leadership, the more we’ve seen that play to the base,” said one Labour MP, granted anonymity like others quoted in this piece to speak frankly. Indeed, Starmer started the new year explicitly talking up closer alignment with the European Union’s single market. At face value, nothing has changed: Starmer’s comments reflect his existing policy of a “reset” with Brussels. His manifesto red lines on not rejoining the customs union or single market remain. Most of his MPs care more about aligning than how to get there. In short, this is not like the Tory wars of the late 2010s. Well, not yet. POLITICO sketches out Labour’s nascent Brexit tribes. THE CUSTOMS UNIONISTS  It all started with a Christmas walk. Health Secretary Wes Streeting told an interviewer he desires a “deeper trading relationship” with the EU — widely interpreted as hinting at joining a customs union. This had been a whispered topic in Labour circles for a while, discussed privately by figures including Starmer’s economic adviser Minouche Shafik. Deputy Prime Minister David Lammy said last month that rejoining a customs union is not “currently” government policy — which some took as a hint that the position could shift. But Streeting’s leadership ambitions (he denies plotting for the top job) and his willingness to describe Brexit as a problem gave his comments an elevated status among Labour Europhiles.  “This has really come from Wes’s leadership camp,” said one person who talks regularly to No. 10 Downing Street. Naomi Smith, CEO of the pro-EU pressure group Best for Britain, added any Labour leadership contest will be dominated by the Brexit question. MPs and members who would vote in a race “are even further ahead than the public average on all of those issues relating to Europe,” she argued. Joining a customs union would in theory allow smoother trade without returning to free movement of people. But Labour critics of a customs union policy — including Starmer himself — argue it is a non-starter because it would mean tearing up post-Brexit agreements with other countries such as India and the U.S. “It’s just absolutely nonsense,” said a second Labour MP.    Keir Starmer has argued that the customs union route would mean hard conversations with workers in the car industry after Britain secured a U.K.-U.S. tariff deal last summer. | Colin McPherson/Getty Images And since Streeting denies plotting and did not even mention a customs union by name, the identities of the players pushing for one are understandably murky beyond the 13 Labour MPs who backed a Liberal Democrat bill last month requiring the government to begin negotiations on joining a bespoke customs union with the EU. One senior Labour official said “hardly any” MPs back it, while a minister said there was no organized group, only a vague idea. “There are people who don’t really know what it is, but realize Brexit has been painful and the economy needs a stimulus,” they said. “And there are people who do know what this means and they effectively want to rejoin. For people who know about trade, this is an absolute non-starter.” Anand Menon, director of the UK in a Changing Europe think tank, said a full rejoining of the EU customs union would mean negotiating round a suite of “add-ons” — and no nations have secured this without also being in the EU single market. (Turkey has a customs union with the EU, but does not benefit from the EU’s wider trade agreements.) “I’m not convinced the customs union works without the single market,” Menon added.  Starmer has argued that the customs union route would mean hard conversations with workers in the car industry after Britain secured a U.K.-U.S. tariff deal last summer, a person with knowledge of his thinking said. “When you read anything from any economically literate commentator, the customs union is not their go-to,” added the senior Labour official quoted above. “Keir is really strong on it. He fully believes it isn’t a viable route in the national interest or economic interest.” THE SINGLE MARKETEERS (A.K.A. THE GOVERNMENT) Starmer and his allies, then, want to park the customs union and get closer to the single market.  Paymaster General Nick Thomas-Symonds has long led negotiations along these lines through Labour’s existing EU “reset.” He and Starmer recently discussed post-Brexit policy on a walk through the grounds of the PM’s country retreat, Chequers. Working on the detail with Thomas-Symonds is Michael Ellam, the former director of communications for ex-PM Gordon Brown, now a senior civil servant in the Cabinet Office. Ellam is “a really highly regarded, serious guy” and attends regular meetings with Brussels officials, said a second person who speaks regularly to No. 10.   A bill is due to be introduced to the U.K. parliament by summer which will allow “dynamic” alignment with new EU laws in areas of agreement. Two people with knowledge of his role said the bill will be steered through parliament by Cabinet Office Minister Chris Ward, Starmer’s former aide and close ally, who was by his side when Starmer was shadow Brexit secretary during the “Brexit wars” of the late 2010s. Starmer himself talked up this approach in a rare long-form interview this week with BBC host Laura Kuenssberg, saying: “We are better looking to the single market rather than the customs union for our further alignment.” While the PM’s allies insist he simply answered a question, some of his MPs spy a need to seize back the pro-EU narrative. The second person who talks regularly to No. 10 argued a “relatively small … factional leadership challenge group around Wes” is pushing ideas around a customs union, while Starmer wants to “not match that but bypass it, and say actually, we’re doing something more practical and potentially bigger.”  A third Labour MP was blunter about No. 10’s messaging: “They’re terrified and they’re worrying about an internal leadership challenge.” Starmer’s allies argue that their approach is pragmatic and recognizes what the EU will actually be willing to accept. Christabel Cooper, director of research at the pro-Labour think tank Labour Together — which plans polling and focus groups in the coming months to test public opinion on the issue — said: “We’ve talked to a few trade experts and economists, and actually the customs union is not all that helpful. To get a bigger bang for your buck, you do need to go down more of a single market alignment route.”  Stella Creasy argued that promising a Swiss-style deal in Labour’s next election manifesto (likely in 2029) would benefit the economy — far more than the “reset” currently on the table. | Nicola Tree/Getty Images Nick Harvey, CEO of the pro-EU pressure group European Movement UK, concurred: “The fact that they’re now talking about a fuller alignment towards the single market is very good news, and shows that to make progress economically and to make progress politically, they simply have to do this.”  But critics point out there are still big questions about what alignment will look like — or more importantly, what the EU will go for.  The bill will include areas such as food standards, animal welfare, pesticide use, the EU’s electricity market and carbon emissions trading, but talks on all of these remain ongoing. Negotiations to join the EU’s defense framework, SAFE, stalled over the costs to Britain. Menon said: “I just don’t see what [Starmer] is spelling out being practically possible. Even at the highest levels there has been, under the Labour Party, quite a degree of ignorance, I think, about how the EU works and what the EU wants.   “I’ve heard Labour MPs say, well, they’ve got a veterinary deal with New Zealand, so how hard can it be? And you want to say, I don’t know if you’ve noticed, but New Zealand doesn’t have a land border with the EU.”  THE SWISS BANKERS Then there are Europhile MPs, peers and campaigners who back aligning with the single market — but going much further than Starmer.  For some this takes the form of a “Swiss-style” deal, which would allow single market access for some sectors without rejoining the customs union.   This would plough through Starmer’s red lines by reintroducing EU freedom of movement, along with substantial payments to Brussels.  But Stella Creasy, chair of the Labour Movement for Europe (LME), argued that promising a Swiss-style deal in Labour’s next election manifesto (likely in 2029) would benefit the economy — far more than the “reset” currently on the table. She said: “If you could get a Swiss-style deal and put it in the manifesto … that would be enough for businesses to invest.”  Creasy said LME has around 150 MPs as members and holds regular briefings for them. While few Labour MPs back a Swiss deal — and various colleagues see Creasy as an outlier — she said MPs and peers, including herself, plan to put forward amendments to the dynamic alignment bill when it goes through parliament.  Tom Baldwin, Starmer’s biographer and the former communications director of the People’s Vote campaign (which called for a second referendum on Brexit), also suggests Labour could go further in 2029. “Keir Starmer’s comments at the weekend about aligning with — and gaining access to — the single market open up a whole range of possibilities,” he said. “At the low end, this is a pragmatic choice by a PM who doesn’t want to be forced to choose between Europe and America.   “At the upper end, it suggests Labour may seek a second term mandate at the next election by which the U.K. would get very close to rejoining the single market. That would be worth a lot more in terms of economic growth and national prosperity than the customs union deal favoured by the Lib Dems.”  A third person who speaks regularly to No. 10 called it a “boil the frog strategy.” They added: “You get closer and closer and then maybe … you go into the election saying ‘we’ll try to negotiate something more single markety or customs uniony.’”  THE REJOINERS? Labour’s political enemies (and some of its supporters) argue this could all lead even further — to rejoining the EU one day. “Genuinely, I am not advocating rejoin now in any sense because it’s a 10-year process,” said Creasy, who is about as Europhile as they come in Labour. “Our European counterparts would say ‘hang on a minute, could you actually win a referendum, given [Reform UK Leader and Brexiteer Nigel] Farage is doing so well?’”  With Prime Minister Keir Starmer tanking in the polls, the Europhile streak among many Labour MPs and members means Brexit could become a key issue for anyone who would seek to replace him. | Tom Nicholson/Getty Images Simon Opher, an MP and member of the Mainstream Labour group closely aligned with Burnham, said rejoining was “probably for a future generation” as “the difficulty is, would they want us back?” But look into the soul of many Labour politicians, and they would love to still be in the bloc — even if they insist rejoining is not on the table now. Andy Burnham — the Greater Manchester mayor who has flirted with the leadership — remarked last year that he would like to rejoin the EU in his lifetime (he’s 56). London Mayor Sadiq Khan said “in the medium to long term, yes, of course, I would like to see us rejoining.” In the meantime Khan backs membership of the single market and customs union, which would still go far beyond No. 10’s red lines.  THE ISSUES-LED MPS Then there are the disparate — yet overlapping — groups of MPs whose views on Europe are guided by their politics, their constituencies or their professional interests. To Starmer’s left, backbench rebels including Richard Burgon and Dawn Butler backed the push toward a customs union by the opposition Lib Dems. The members of the left-wing Socialist Campaign Group frame their argument around fears Labour will lose voters to other progressive parties, namely the Lib Dems, Greens and SNP, if they fail to show adequate bonds with Europe. Some other, more centrist MPs fear similar. Labour MPs with a military background or in military-heavy seats also want the U.K. and EU to cooperate further. London MP Calvin Bailey, who spent more than two decades in the Royal Air Force, endorsed closer security relations between Britain and France through greater intelligence sharing and possibly permanent infrastructure. Alex Baker, whose Aldershot constituency is known as the home of the British Army, backed British involvement in a global Defense, Security and Resilience Bank, arguing it could be key to a U.K.-EU Defence and Security Pact. The government opted against joining such a scheme.   Parliamentarians keen for young people to bag more traveling rights were buoyed by a breakthrough on Erasmus+ membership for British students at the end of last year. More than 60 Labour MPs earlier signed a letter calling for a youth mobility scheme allowing 18 to 30-year-olds expanded travel opportunities on time limited visas. It was organized by Andrew Lewin, the Welywn Hatfield MP, and signatories included future Home Office Minister Mike Tapp (then a backbencher).  Labour also has an influential group of rural MPs, most elected in 2024, who are keen to boost cooperation and cut red tape for farmers. Rural MP Steve Witherden, on the party’s left, said: “Three quarters of Welsh food and drink exports go straight to the EU … regulatory alignment is a top priority for rural Labour MPs. Success here could point the way towards closer ties with Europe in other sectors.”  THE NOT-SO-SECRET EUROPHILES (A.K.A. ALL OF THE ABOVE) Many Labour figures argue that all of the above are actually just one mega-group — Labour MPs who want to be closer to Brussels, regardless of the mechanism. Menon agreed Labour camps are not formalized because most Labour MPs agree on working closely with Brussels. “I think it’s a mishmash,” he said. But he added: “I think these tribes will emerge or develop because there’s an intra-party fight looming, and Brexit is one of the issues people use to signal where they stand.” A fourth Labour MP agreed: “I didn’t think there was much of a distinction between the camps of people who want to get closer to the EU. The first I heard of that was over the weekend.”  The senior Labour official quoted above added: “I don’t think it cuts across tribes in such a clear way … a broader group of people just want us to move faster in terms of closeness into the EU, in terms of a whole load of things. I don’t think it fits neatly.” For years MPs were bound by a strategy of talking little about Brexit because it was so divisive with Labour’s voter base. That shifted over 2025. Labour advisers were buoyed by polls showing a rise in “Bregret” among some who voted for Brexit in 2016, as well as changing demographics (bluntly, young voters come of age while older voters die).  No. 10 aides also noted last summer that Farage, the leader of the right-wing populist party Reform UK, was making Brexit less central to his campaigning. Some aides (though others dispute this) credit individual advisers such as Tim Allan, No. 10’s director of communications, as helping a more openly EU-friendly media strategy into being. For all the talk of tribes and camps, Labour doesn’t have warring Brexit factions in the same way that the Tories did at the height of the EU divorce in the 2010s. | Jakub Porzycki/Getty Images THE BLUE LABOUR HOLDOUTS  Not everyone in Labour wants to hug Brussels tight.  A small but significant rump of Labour MPs, largely from the socially conservative Blue Labour tribe, is anxious that pursuing closer ties could be seen as a rejection of the Brexit referendum — and a betrayal of voters in Leave-backing seats who are looking to Reform. One of them, Liverpool MP Dan Carden, said the failure of both London and Brussels to strike a recent deal on defense funding, even amid threats from Russia, showed Brussels is not serious.   “Any Labour MP who thinks that the U.K. can get closer to the single market or the customs union without giving up freedoms and taking instruction from an EU that we’re not a part of is living in cloud cuckoo land,” he said. A similar skepticism of the EU’s authority is echoed by the Tony Blair Institute (TBI), led by one of the most pro-European prime ministers in Britain’s history. The TBI has been meeting politicians in Brussels and published a paper translated into French, German and Italian in a bid to shape the EU’s future from within.   Ryan Wain, the TBI’s senior director for policy and politics, argued: “We live in a G2 world where there are two superpowers, China and the U.S. By the middle of this century there will likely be three, with India. To me, it’s just abysmal that Europe isn’t mentioned in that at all. It has massive potential to adapt and reclaim its influence, but that opportunity needs to be unlocked.”  Such holdouts enjoy a strange alliance with left-wing Euroskeptics (“Lexiteers”), who believe the EU does not have the interests of workers at its heart. But few of these were ever in Labour and few remain; former Leader Jeremy Corbyn has long since been cast out. At the same time many Labour MPs in Leave-voting areas, who opposed efforts to stop Brexit in the late 2010s, now support closer alignment with Brussels to help their local car and chemical industries. As such, there are now 20 or fewer MPs holding their noses on closer alignment. Just three Labour MPs, including fellow Blue Labour supporter Jonathan Brash, voted against a bill supporting a customs union proposed by the centrist, pro-Europe Lib Dems last month.  WHERE WILL IT ALL END?  For all the talk of tribes and camps, Labour doesn’t have warring Brexit factions in the same way that the Tories did at the height of the EU divorce in the 2010s. Most MPs agree on closer alignment with the EU; the question is how they get there.  Even so, Menon has a warning from the last Brexit wars. Back in the late 2010s, Conservative MPs would jostle to set out their positions — workable or otherwise. The crowded field just made negotiations with Brussels harder. “We end up with absolutely batshit stupid positions when viewed from the EU,” said Menon, “because they’re being derived as a function of the need to position yourself in a British political party.” But few of these were ever in Labour and few remain; former Leader Jeremy Corbyn has long since been cast out. | Seiya Tanase/Getty Images The saving grace could be that most Labour MPs are united by a deeper gut feeling about the EU — one that, Baldwin argues, is reflected in Starmer himself. The PM’s biographer said: “At heart, Keir Starmer is an outward-looking internationalist whose pro-European beliefs are derived from what he calls the ‘blood-bond’ of 1945 and shared values, rather than the more transactional trade benefits of 1973,” when Britain joined the European Economic Community.  All that remains is to turn a “blood-bond” into hard policy. Simple, right?

LONDON — The government is preparing a bill that will give overarching powers to allow the U.K. to align with the EU over a wide suite of areas to give legal shape to their “reset” deal with the bloc. One U.K. official said a bill is due to be introduced to parliament this spring or summer, establishing a legal framework for U.K.-EU alignment. These potential areas include food standards, animal welfare, pesticide use, the EU’s electricity market and carbon emissions trading, according to the official, who was granted anonymity to speak freely about the plans. The bill would create a new framework for the U.K. government and devolved administrations to adopt new EU laws when they are passed in Brussels. It raises the prospect that new EU laws in agreed areas will effectively transfer to the U.K. statute book automatically, with Britain retaining the power to veto them in specific cases. U.K. officials stress that the exact form the powers will take has not yet been decided. The U.K. is currently negotiating a Brexit “reset” agreement with the bloc, including an agrifood deal, plans to link its emissions trading system with the EU’s and reintegrating electricity markets. Britain is still seeking carve-outs as part of these deals, the official said, making it too early to say exactly where alignment will happen and what it will look like. News of the scope of the bill comes after EU Relations Minister Nick Thomas-Symonds said in August last year that parliament would “rightly have a say” on alignment with new EU rules in a speech delivered to The Spectator. He has insisted that the U.K. will still “have decision-shaping rights when new EU policies are made.” The U.K. government has been approached for comment.

Britain’s biggest trade union body has called on the Labour government to consider rejoining an EU customs union, reopening a core Brexit fault line as the party grapples with weak growth and rising pressure from its traditional base. In an interview with the Guardian, Trades Union Congress (TUC) General Secretary Paul Nowak said Labour should seek the closest possible economic relationship with the EU to ease trade friction and support household incomes. “The government needs to do whatever it can to build the closest possible positive working relationship with Europe economically and politically … up to and including the customs union,” Nowak said. The U.K. left the EU customs union after the 2016 Brexit referendum, formally exiting the bloc in January 2020 under then-Prime Minister Boris Johnson. Britain remained aligned with EU trade rules during a transition period before fully leaving the customs union on Jan. 1, 2021, when the EU-U.K. Trade and Cooperation Agreement took effect.  The move restored Britain’s ability to strike independent trade deals but introduced customs checks, rules-of-origin requirements and new barriers for exporters. Prime Minister Keir Starmer has so far ruled out rejoining the customs union, framing it as a red line while promising a broader “reset” with Brussels. “We are getting a closer relationship with the EU on a number of fronts, including on trade and the economy,” Starmer told MPs earlier this month, adding: “We have clear red lines in relation to the single market and the customs union.”

LONDON — British students will once again be able to take part in the EU’s Erasmus+ exchange scheme from January 2027 — following a six-year hiatus due to Brexit. U.K. ministers say they have secured a 30 percent discount on payments to re-enter the program that strikes “a fair balance between our contribution and the benefits” it offers. The move is one of the first tangible changes out of Keir Starmer’s EU “reset,” which is designed to smooth the harder edges off Boris Johnson’s Brexit settlement while staying outside the bloc’s orbit. In an announcement on Wednesday Brussels and London also confirmed they were formally beginning negotiations on U.K. re-entry into the EU’s internal market for electricity. Both sides hope the move, which was called for by industry in both sides of the Channel, will cut energy bills while also making it easier to invest in North Sea green energy projects — which have been plagued by Brexit complications. They also pledged to finish ongoing talks on linking the U.K. and EU carbon trading systems, as well as a new food and drink (SPS) deal, by the time they meet for an EU-U.K. summit in 2026. The planned meeting, which will take place in Brussels, does not yet have a date but is expected around the same time as this year’s May gathering in London. The announcements give more forward momentum to the “reset,” which faltered earlier this month after failing to reach an agreement on British membership of an EU defense industry financing program, SAFE. The two sides could not agree on the appropriate level of U.K. financial contribution. The pledge to finalize carbon trading (ETS) linkage next year is significant because it will help British businesses avoid a new EU carbon border tax — CBAM — which starts from Jan. 1 2026. While the tax, which charges firms for the greenhouse gas emissions in their products, begins on Jan. 1, payments are not due until 2027, by which time the U.K. is expected to be exempt. But it is not yet clear whether British firms will have to make back payments on previous imports once the deal is secured, and there is no sign of any deal to bridge the gap. WIDENING HORIZONS EU Relations Minister Nick Thomas-Symonds, who negotiated the agreement, said the move was “a huge win for our young people” and would break down barriers and widen horizons so that “everyone, from every background, has the opportunity to study and train abroad.” European Parliament President Roberta Metsola welcomes British Minister for the Constitution and European Union Relations Nick Thomas-Symonds. | Ronald Wittek/EPA “This is about more than just travel: it’s about future skills, academic success, and giving the next generation access to the best possible opportunities,” he said. “Today’s agreements prove that our new partnership with the EU is working. We have focused on the public’s priorities and secured a deal that puts opportunity first.” The expected cost of the U.K.’s membership of the Erasmus+ program in 2027 will be £570 million. Skills Minister Jacqui Smith said Erasmus+ membership is “about breaking down barriers to opportunity, giving learners the chance to build skills, confidence and international experience that employers value.” Liberal Democrat Universities Spokesperson Ian Sollom also welcomed U.K. re-entry into the exchange scheme but said it should be a “first step” in a closer relationship with the EU. “This is a moment of real opportunity and a clear step towards repairing the disastrous Conservative Brexit deal,” he said. “However while this is a welcome breakthrough, it must be viewed as a crucial first step on a clear roadmap to a closer relationship with Europe. Starting with negotiating a bespoke UK-EU customs union, and committing to a youth mobility scheme for benefit of the next generation.”

LONDON — Britain will investigate how hostile states like China and Russia are financially interfering with U.K. democracy and elections, ministers have announced. Steve Reed, the communities secretary, told MPs that the decision was prompted by the conviction of Nathan Gill — the former leader of Reform UK in Wales, who was jailed after accepting payments to make pro-Russia statements while he was an MEP for Nigel Farage’s Brexit Party. “The facts are clear,” Reed told MPs on Tuesday, adding: “A British politician took bribes to further the interests of the Russian regime, a regime which forcefully deported vulnerable Ukrainian children and killed a British citizen on British soil using a deadly nerve agent. “This conduct is a stain on our democracy. The independent review will work to remove that stain.” An “urgent” independent review into foreign financial interference will be run by Phillip Rycroft, the former top official in the Home Office. Farage’s party — which has a commanding lead in British polls and is challenging the incumbent Labour government — has so far batted away calls to conduct an internal review into past and potential links to Russia, and stressed that Gill was a “bad apple” who betrayed Farage’s trust. The party’s deputy leader, Richard Tice, welcomed the announcement in the House of Commons. CHINA WARNINGS The move also comes after a series of high-profile warnings of political monitoring and interference by China. Last month, MI5 issued a security alert to MPs that Chinese intelligence officers are attempting to recruit people with access to sensitive information about the British state. The review, which will be sent to ministers by the end of March, will help inform Britain’s upcoming elections and democracy bill, which Reed confirmed is now expected in the new year. Dan Jarvis, the security minister, added that the review will look to “rigorously test the financial safeguards we currently have in place.” Parliament’s Intelligence and Security Committee warned Monday that the “current protections within electoral financing law are not adequate” and there are “many gaps which could be exploited by a foreign adversary to covertly channel money to political parties.” The review will not look at allegations of interference in the 2016 Brexit referendum, the government said in a press notice. Officials said that the work will also examine what role cryptocurrencies have in illicit money being used to target British democracy. POLITICO first reported earlier this month that ministers are considering a ban on crypto donations to political parties. Asked in the Commons about fears over the use of crypto to fund political parties, Reed said “Cryptocurrency is one of the routes by which dirty money is able to covertly enter British politics in an attempt to influence the outcomes of elections. That is why crypto will be in scope for this review.”

Listen on * Spotify * Apple Music * Amazon Music He’s not even European — yet Donald Trump has topped POLITICO’s annual P28 ranking of the most powerful people who will shape Europe in 2026. EU Confidential host Sarah Wheaton takes you inside the gala in Brussels — where commissioners, MEPs, diplomats, lobbyists and journalists packed into a glittering room, even as the mood underneath the sparkle felt unusually tense. At the event, Ursula von der Leyen sat down with Carrie Budoff Brown, POLITICO’s executive editor, for an exclusive on-stage conversation — offering one of her first public reactions to Trump’s sharp criticism of EU leaders as “weak,” and Washington’s dramatic new security strategy, which seeks to undermine them. Be sure to check out the full 2026 ranking here. Plus, we bring you Sarah’s conversation with Balázs Orbán, the Hungarian prime minister’s political director, who offers a perspective far outside the Brussels mainstream — on Ukraine, on Europe’s political direction, and on where he believes the EU keeps going wrong. And finally, we have a taste of Anne McElvoy’s interview with Nick Thomas-Symonds, the U.K.’s minister for European relations (for more, head to: Politics at Sam and Anne’s ). And if you haven’t yet, listen to the exclusive interview our colleague Dasha Burns did with Donald Trump on our sister podcast The Conversation.

LONDON — When a job for life beckons, principles have a way of disappearing. Keir Starmer has given 25 close allies an early Christmas present, appointing them to Britain’s unelected House of Lords. They’ll don some ermine, bag a grand title, claim £371 a day just for showing up and swan around the Palace of Westminster for the rest of their lives — or at least until their 80th birthday. The PM’s former Director of Communications Matthew Doyle, Chancellor Rachel Reeves’ ex-Chief of Staff Katie Martin and Iceland Foods Founder Richard Walker are among the lucky Labour-supporting individuals given a spot in Britain’s unelected legislating chamber — all without having to make their case to British voters. The opposition Tories and Lib Dems (no strangers to filling the upper chamber when they were in power) got a paltry three and five spots respectively, while the insurgent Reform UK and Greens missed out completely. Pushing back at the criticism, which comes as Labour vows a host of changes to the upper chamber, a party official said: “⁠The Tories stuffed the House of Lords, creating a serious imbalance that has allowed them to frustrate our plans to make working families better off. “This needs to be corrected to deliver on our mandate from the British people. We will continue to progress our program of reform, which includes removing the right of hereditary peers to sit and vote in the Lords.” POLITICO runs through five times the party laid into the red benches. 2020: BRING THE HOUSE DOWN Starmer was unapologetically radical during the Labour leadership contest to replace Jeremy Corbyn. He made 10 striking pledges as he courted the party’s left-wing membership. One included a promise to “devolve power, wealth and opportunity” by introducing a federal system which would “abolish the House of Lords and replace it with an elected chamber.” 2022: KEIR THE FIXER The Labour leader still backed Lords abolition for a chunk of his time in opposition — though he knew existing Labour peers might have a view or two about that. Starmer charmed his unelected legislators in November 2022 by praising the “vital role” they played, but insisted he was focused on “restoring trust in politics” after ex-PM Boris Johnson rewarded “lackeys and donors” with peerages. Sound familiar?  “We need to show how we will do things differently. Reforming our second chamber has to be a part of that,” the Labour leader said. 2022: STRONG CONSTITUTION The following month, Labour’s plans got a hard launch. In a dazzling (well, for Starmer) press conference, he promised the “biggest ever transfer of power from Westminster to the British people.” Strong stuff. Starmer got party bigwig and ex-PM Gordon Brown to pen a report backing constitutional change — including the abolition of the House of Lords. Starmer said an unelected chamber was “indefensible” and an elected house would be created “with a strong mission.” A timeframe was not forthcoming. 2023: SLOW AND STEADY Angela Smith has led Labour in the Lords since 2015, but still recognizes reform is needed. The shadow Lords leader insisted Labour wouldn’t flood the chamber with its own people if in power. Angela Smith has led Labour in the Lords since 2015, but still recognizes reform is needed. | Wiktor Szymanowicz/Future Publishing via Getty Images  “No. Ain’t gonna happen,” she told the House magazine just months before the general election. “The idea that Keir Starmer is on day one going to have a list of 100 people to put here is cloud cuckoo.”  She said it wasn’t all about winning votes: “I don’t want this to be a numbers game, like ‘yah boo, we’ve got more than you, we’re gonna win, we’re gonna smash this through’. That’s not what the House of Lords does.” She may feel differently now the government suffers defeats on its legislation under her watch. 2024: WRITTEN IN SAND Labour’s election-winning manifesto retreated from the halcyon rebel days of opposition, but it was still punchy. “Reform is long overdue and essential,” it argued, claiming “too many peers do not play a proper role in our democracy.” The manifesto also promised a minimum participation requirement, mandatory retirement age and strengthened processes for removing disgraced members. “We will reform the appointments process to ensure the quality of new appointments and will seek to improve the national and regional balance of the second chamber,” it said. No. 10 insisted Thursday it will progress with House of Lords reform — though … declined to give a timeline.

President Donald Trump’s latest round of Europe-bashing has the U.S.’s allies across the Atlantic revisiting a perennial question: Why does Trump hate Europe so much? Trump’s disdain for America’s one-time partners has been on prominent display in the past week — first in Trump’s newly released national security strategy, which suggested that Europe was suffering from civilizational decline, and then in Trump’s exclusive interview with POLITICO, where he chided the “decaying” continent’s leaders as “weak.” In Europe, Trump’s criticisms were met with more familiar consternation — and calls to speed up plans for a future where the continent cannot rely on American security support. But where does Trump’s animosity for Europe actually come from? To find out, I reached out to a scholar who’d been recommended to me by sources in MAGA world as someone who actually understands their foreign policy thinking (even if he doesn’t agree with it). “He does seem to divide the world into strength and weakness, and he pays attention to strength, and he kind of ignores weakness,” said Jeremy Shapiro, the research director at the European Council on Foreign Relations and an expert on Trump’s strained relations with the continent. “And he has long characterized the Europeans as weak.” Shapiro explained that Trump has long blamed Europe’s weakness on its low levels of military spending and its dependence on American security might. But his critique seems to have taken on a new vehemence during his second term thanks to input from new advisers like Vice President JD Vance, who have successfully cast Europe as a liberal bulwark in a global culture war between MAGA-style “nationalists” and so-called globalists. Like many young conservatives, Shapiro explained, Vance has come to believe that “it was these bastions of liberal power in the culture and in the government that stymied the first Trump term, so you needed to attack the universities, the think tanks, the foundations, the finance industry, and, of course, the deep state.” In the eyes of MAGA, he said, “Europe is one of these liberal bastions.” This conversation was edited for length and clarity. Trump’s recent posture toward Europe brings to mind the old adage that the opposite of love isn’t hate, it’s indifference. Do you think Trump hates Europe, or does he just think it’s irrelevant? My main impression is that he’s pretty indifferent toward it. There are moments when specific European countries or the EU really pisses him off and he expresses something that seems close to hatred, but mostly he doesn’t seem very focused on it. Why do you think that is? He does seem to divide the world into strength and weakness, and he pays attention to strength, and he kind of ignores weakness. And he has long characterized the Europeans as weak for a bunch of different reasons having to do with what seems to him to be a decadence in their society, their immigration, their social welfare states, their lack of apparent military vigor. All of those things seem to put them in the weak category, and in Trump’s world, if you’re in the weak category, he doesn’t pay much attention to you. What about more prosaic things like the trade imbalance and NATO spending? Do those contribute to his disdain, or does it originate from a more guttural place? I get the impression that it is more at a guttural level. It always seemed to me that the NATO spending debate was just a stick with which to beat the NATO allies. He has long understood that that’s something that they felt a little bit guilty about, and that’s something that American presidents had beat them about for a while, so he just sort of took it to an 11. The trade deficit is something that’s more serious for him. He’s paid quite a bit of attention to that in every country, so it’s in the trade area where he takes Europeans most seriously. But because they’re so weak and so dependent on the United States for security, he hasn’t had to deal with their trade problems in the same way. He’s able to threaten them on security, and they have folded pretty quickly. Does some of his animosity originate from his pre-presidency when he did business in Europe? He likes to blame Europeans for nixing some of his business transactions, like a golf course in Ireland. How serious do you think that is? I think that’s been important in forming his opinion of the EU rather than of Europe as a whole. He never seems to refer to the EU without referring to the fact that they blocked his golf course in Ireland. It wasn’t even the EU that blocked it, actually — it was an Irish local government authority — but it conforms to the general MAGA view of the EU as overly bureaucratic, anti-development and basically as an extension of the American liberal approach to development and regulation, which Trump certainly does hate. That’s part of what led Trump and his movement more generally to put the EU in the category of supporters of liberal America. In that sense, the fight against the EU in particular — but also against the other liberal regimes in Europe — became an extension of their domestic political battle with liberals in America. That effort to pull Europe as a whole into the American culture war by positioning it as a repository of all the liberal pieties that MAGA has come to hate — that seems kind of new. That is new for the second term, yeah. Where do you think that’s coming from? It definitely seems to be coming from [Vice President] JD Vance and the sort of philosophers who support him — the Patrick Deneens and Yoram Hazonys. Those types of people see liberal Europe as quite decadent and as part of the overall liberal problem in the world. You can also trace some of it back to Steve Bannon, who has definitely been talking about this stuff for a while. There does seem to be a real preoccupation with the idea that Europe is suffering from some sort of civilizational decline or civilization collapse. For instance, in both the new national security strategy and in his remarks to POLITICO this week, Trump has suggested that Europe is “decaying.” What do you make of that? This is a bit of a projection, right? If you look at the numbers in terms of immigration and diversity, the United States is further ahead in that decay — if you want to call it that — than Europe. There was this view that emerged among MAGA elites in the interregnum that it wasn’t enough to win the presidency in order to successfully change America. You had to attack all of the bastions of liberal power. It was these bastions of liberal power in the culture and in the government that stymied the first Trump term, so you needed to attack the universities, the think tanks, the foundations, the finance industry and, of course, the deep state, which is the first target. It was only through attacking these liberal bastions and conquering them to your cause that you could have a truly transformative effect. One of the things that they seem to have picked up while contemplating this theory is that Europe is one of these liberal bastions. Europe is a support for liberals in the United States, in part because Europe is the place where Americans get their sense of how the world views them. It’s ironic that that image of a decadent Europe coexists with the rise of far-right parties across the continent. Obviously, the Trump administration has supported those parties and allied with them, but at least in France and Germany, the momentum seems to be behind these parties at the moment. That presents them with an avenue to destroy liberal Europe’s support for liberal America by essentially transforming Europe into an illiberal regime. That is the vector of attack on liberal Europe. There has been this idea that’s developed amongst the populist parties in Europe since Brexit that they’re not really trying to leave the EU or destroy the EU; they’re trying to remake the EU in their nationalist and sovereigntist image. That’s perfect for what the Trump people are trying to do, which is not destroy the EU fully, but destroy the EU as a support for liberal ideas in the world and the United States. You mentioned the vice president, who has become a very prominent mouthpiece for this adversarial approach to Europe — most obviously in his speech at Munich earlier this year. Do you think he’s just following Trump’s guttural dislike of Europe or is he advancing his own independent anti-European agenda? A little of both. I think that Vance, like any good vice president, is very careful not to get crosswise with his boss and not contradict him in any way. So the fact that Trump isn’t opposed to this and that he can support it to a degree is very, very important. But I think that a lot of these ideas come from Vance independently, at least in detail. What he’s doing is nudging Trump along this road. He’s thinking about what will appeal to Trump, and he’s mostly been getting it right. But I think that especially when it comes to this sort of culture war stuff with Europe, he’s more of a source than a follower. During this latest round of Trump’s Euro-bashing, did anything stand out to you as new or novel? Or was it all of a piece with what you had heard before? It was novel relative to a year ago, but not relative to February and since then. But it’s a new mechanism of describing it — through a national security strategy document and through interviews with the president. The same arguments have achieved a sort of higher status, I would say, in the last week or so. You could sit around in Europe — as I did — and argue about the degree to which this really was what the Trump administration was doing, or whether this was just a faction — and you can still have that argument, because the Trump administration is generally quite inconsistent and incoherent when it comes to this kind of thing — but I think it’s undoubtedly achieved a greater status in the last week or two. How do you think Europe should deal with Trump’s recurring animosity towards the continent? It seems they’ve settled on a strategy of flattery, but do you think that’s effective in the long run? No, I think that’s the exact opposite of effective. If you recall what I said at the beginning, Trump abhors weakness, and flattery is the sort of ultimate manifestation of weakness. Every time the Europeans show up and flatter Trump, it enables them to have a good meeting with him, but it conveys the impression to him that they are weak, and so it increases his policy demands against them. We’ve seen that over and over again. The Europeans showed up and thought they had changed his Ukraine position, they had a great meeting, he said good things about them, they went home and a few weeks later, he had a totally different Ukraine position that they’re now having to deal with. The flattery has achieved the sense in the Trump administration that they can do anything they want to the Europeans, and they’ll basically swallow it. They haven’t done what some other countries have done, like the Chinese or the Brazilians, or even the Canadians to some degree, which is to stand up to Trump and show him that he has to deal with them as strong actors. And that’s a shame, because the Europeans — while they obviously have an asymmetric dependence on the United States, and they have some weaknesses — are a lot stronger than a lot of other countries, especially if they were working together. I think they have some capacity to do that, but they haven’t really managed it as of yet. Maybe this will be a wake-up call to do that.

BRUSSELS — Britain’s top Europe minister defended a decision to keep the U.K. out of the EU’s customs union — despite sounding bullish on a speedy reset of ties with the bloc in the first half of 2026. Speaking to POLITICO in Brussels where he was attending talks with Maroš Šefčovič, the EU trade commissioner, Nick Thomas-Symonds said a non-binding British parliamentary vote on Tuesday on rejoining the tariff-free union — pushed by the Liberal Democrats, but supported by more than a dozen Labour MPs — risked reviving bitter arguments about Brexit. Thomas-Symonds described the gambit by the Lib Dems — which had the backing of one of Labour’s most senior backbenchers, Meg Hillier — as “Brexit Redux.” And he accused Ed Davey, the Lib Dem leader, of wanting “to go back to the arguments of the past.” The Lib Dems have drawn support from disillusioned Labour voters, partly inspired by the party’s more forthright position on moving closer to the EU. But Thomas-Symonds defended Labour’s manifesto commitment to remain outside the single market and the customs union. “The strategy that I and the government have been pursuing is based on our mandate from the general election of 2024, that we would not go back to freedom of movement, we would not go back to the customs union or the single market,” the British minister for European Union relations said. Thomas-Symonds said this remained a “forward-looking, ruthlessly pragmatic approach” that is “rooted in the challenges that Britain has in the mid 2020s.” He pointed out that post-Brexit Britain outside of the customs union has signed trade deals with India and the United States, demonstrating the “advantages of the negotiating freedoms Britain has outside the EU.” ‘GET ON WITH IT’ Speaking to POLITICO’s Anne McElvoy for the “Politics at Sam and Anne’s” podcast, out on Thursday, Thomas-Symonds was optimistic that a grand “reset” of U.K.-EU relations would progress more quickly in the new year. The two sides are trying to make headway on a host of areas including a youth mobility scheme and easing post-Brexit restrictions on food and drink exports. “I think if you look at the balance of the package and what I’m talking about in terms of the objective on the food and drink agreement, I think you can see a general timetable across this whole package,” he said. Pressed on whether this could happen in the first half of 2026,  the U.K. minister sounded upbeat: “I think the message from both of us to our teams will be to get on with it.”  The Brussels visit comes after talks over Britain’s potential entry into a major EU defense program known as SAFE broke down amid disagreement over how much money the U.K. would pay for access to the loans-for-arms scheme. The program is aimed at re-arming Europe more speedily to face the threat from Russia. Asked if the collapse of those talks showed the U.K. had miscalculated its ability to gain support in a crucial area of re-connection, Thomas-Symonds replied: “We do always impose a very strict value for money. What we would not do is contribute at a level that isn’t in our national interest.” The issued had “not affected the forward momentum in terms of the rest of the negotiation,” he stressed. YOUTH MOBILITY STANDOFF Thomas-Symonds is a close ally of Prime Minister Keir Starmer and has emboldened the under-fire British leader to foreground his pro-Europe credentials. The minister for European relations suggested his own elevation in the British government — he will now attend Cabinet on a permanent basis — was a sign of Starmer’s intent to focus on closer relations with Europe and tap into regret over a post-Brexit loss of business opportunities to the U.K. Fleshing out the details of a “youth mobility” scheme — which would allow young people from the EU and the U.K. to spend time studying, traveling, or working in each other’s countries — has been an insistent demand of EU countries, notably Germany and the Netherlands. Yet progress has foundered over how to prevent the scheme being regarded  as a back-door for immigration to the U.K. — and how exactly any restrictions on numbers might be set and implemented. Speaking to POLITICO, Thomas-Symonds hinted at British impatience to proceed with the program, while stressing: “It has to be capped, time-limited, and  it’ll be a visa-operated scheme. “Those are really important features, but I sometimes think on this you can end up having very dry discussion about the design when actually this is a real opportunity for young Brits and for young Europeans to live, work, study, enjoy other cultures.” The British government is sensitive to the charge that the main beneficiaries of the scheme will be students or better-off youngsters. “I’m actually really excited about this,” Thomas-Symonds said, citing his own working-class background and adding that he would have benefited from a chance to spend time abroad as a young man “And the thing that strikes me as well is making sure this is accessible to people from all different backgrounds,” he said. Details however still appear contentious: The EU’s position remains that the scheme should not be capped but should have a break clause in the event of a surge in numbers. Berlin in particular has been reluctant to accept the Starmer government’s worries that the arrangement might be seen as adding to U.K. immigration figures, arguing that British students who are outside many previous exchange programs would also be net beneficiaries.  Thomas-Symonds did not deny a stand-off, saying: “When there are ongoing talks about particular issues, I very much respect the confidentiality and trust on the ongoing talks.”  Britain’s most senior foreign minister, Yvette Cooper, on Wednesday backed a hard cap on the number of people coming in under a youth mobility scheme. She told POLITICO in a separate interview that such a scheme needs to be “balanced.” “The UK-EU relationship is really important and is being reset, and we’re seeing cooperation around a whole series of different things,” she said. We also, at the same time, need to make sure that issues around migration are always properly managed and controlled.” A U.K. official later clarified that Cooper is keen to see an overall cap on numbers. BOOZY GIFT As negotiations move from the technical to the political level this week, Thomas-Symonds sketched out plans for a fresh Britain-EU summit in Brussels when the time is right. “In terms of the date, I just want to make sure that we have made sufficient progress, to demonstrate that progress in a summit,” Nick Thomas-Symonds said. “I think that the original [post-Brexit] Trade and Cooperation Agreement did not cover services in the way that it should have done,” he added. “We want to move forward on things like mutual recognition of professional qualifications.” Thomas-Symonds, one of the government’s most ardent pro-Europeans, meanwhile told POLITICO he had forged a good relationship with “Maroš” (Šefčovič) – and had even brought him a Christmas present of a bottle of House of Commons whisky. “So there’s no doubt that there is that trajectory of closer U.K.-EU cooperation,” he quipped. Dan Bloom and Esther Webber contributed reporting.