Change of Prime Minister: How will it affect EU-UK relations and the rest

The second EU-UK Reset Meeting was originally scheduled for 22 July but it postponed due to the resignation of Keir Starmer who has now been suceeded  by Andy Burnham. In addition, Nick Thomas-Symonds has been replaced by Hamish Falconer who was elected MP for Lincoln in 2024 and new to Parliament.  However, Falconer is an experienced diplomat.  No datehas been set for the new Meeting but is unlikely to take place until September.

Under Starmer, the UK and EU signed a security and defence pact. However, they failed to agree British participation in a €150bn EU defence loans scheme, the two sides moved on. In Starmer’s final week in office  the UK signed an agreement to participate in the EU’s €90bn (£77bn) loan for Ukraine.  This allows British companies to provide more weapons funded through the scheme.

Burnham has not spoken often about UK relations with the EU.  He is reported to have said at a Labour Party Conference that the UK will re-join the EU in his lifetime but in the Makerfield he was much more cautious and realised that a rapid move towards rej-oining the EU would lead to division in the UK. In the 2024 Labour Manifesto, the Labour Party said that it wanted to improve relations with the EU but riled oy re-joining the European Union or the Single Market.

The first  Reset meeting in May 2025 seemed a positive first step but even if all co-operation measures were enacted, it would only add about 0.4% to UK compared with the 4%+ loss caused by Brexit   Progress has been made on the issues in the Common Understanding but it has been slow.  This was not helped as the EU Member States took some time to agree a negotiating mandate.   The areas where agreements have been made are on  a deal to reduce paperwork and certification for fresh food in an effort to ease trade barriers for British exporters; linking emissions trading systems; and a youth exchange scheme enabling 18- to 30-year-olds to work, study, travel and volunteer in the EU and UK.  The UK has also joined the Erasmus Programme.

There have been a number of problems to solve.  The cost of UK entry in the exchange schemes has been an issue as had the potential effect of the scheme on freedom of movement.  This has been a problem for the UK Government. manifested itself in discussions about  the numbers coming to the UK on Erasmus and particularly on the youth exchange programme.

Starmer seemed to adopt a positive but cautious approach to the EU and Burnham is likely to be more positive. However, Burnham will be constrained by the :Labour Manifesto.  The EU will be wary of the UK Government’s ‘cherry picking’ the more attractive aspects of a new relationship.