Ministers plan to fundamentally reshape Britain’s relationship with the EU with new legislation that could result in Britain signing up to EU single market rules without a normal parliamentary vote.
In a major development in the Prime Minister’s push for closer ties with the continent after the Iran war, the Guardian understands ministers are set to face opposition to “dynamic alignment” with the EU who “scream treason” at the powers in the new EU-UK reset bill.
Weeks after Donald Trump’s war with Iran has exposed the fragility of Britain’s damaged special relationship with the US, ministers argue the move would inject billions of dollars into the UK economy, help defray the costs of the conflict and boost lagging productivity.
A new bill, which will implement the food and drink trade agreement with the EU, will include powers to enable the government to engage dynamically with Europe in areas where it already has agreements in place. But it would also allow the UK to quickly implement devolved single market rules if it determines it is in the national interest, without facing full parliamentary scrutiny each time.
This move is possible under the so-called Henry VIII powersNamed after a 1539 law that allows the King to rule by decree, allowing ministers to approve laws without full scrutiny from Parliament. secondary legislation.
The Bill will enable deals the government is negotiating on food and drink and emissions trading, and will allow it to comply with future EU changes in these areas.
But the Guardian understands that if the new bill – expected to be introduced before the summer – is passed, negotiators could seek to use secondary legislation to adopt EU rules on everything from cars to farming.
Parliament can either approve or reject secondary legislation, but not amend it, which would probably mean that MPs would “rubber-stamp” new deals rather than debate and vote on each one. Any blocked vote would be likely to cause problems with the EU and could trigger retaliatory measures. One source said: “We are clear that Parliament will have a role on new deals and the new EU laws that apply under those deals.”
The introduction of sweeping powers is likely to put the government on a collision course with opposition parties. Although it is unlikely to be rejected in the Commons, the bill may face obstruction in the House of Lords.
Ministers say the move will boost trade without breaking the government’s red lines on rejoining the customs union, the single market or returning to freedom of movement, but critics argue it could hurt. “Integration with the EU by stealth, without the voting or veto rights conferred by membership of the bloc.
“Changes to UK rules should be debated in Parliament and rejected by politicians,” said Professor Anand Menon, director of the think tank UK in a Changing Europe. “The reality of it is that we are signing an agreement with the EU that commits us to follow their rules, whether we like it or not.. The danger is that you are secretly integrating with the EU.”
But Menon recognized the challenge the government would face if every regulatory alignment had to be debated. “This is an ugly Brexit deal,” he said. “You’re trading political control against economic access, without voting in the room.”
Ministers argue the bill will cut red tape and costs for businesses so agreements on areas such as food and drink, automotive agreements and security and migration information sharing can be implemented more quickly. The sources said any disputes about the rules would be decided by an independent tribunal, not an EU court.
While Nigel Farage’s Reform UK has focused on immigration and net zero policies ahead of elections in Scotland, Wales and England in May, sources said the government was ready to go into battle with hard Brexit supporters.
“We expect a fight in the region from those who were in favor of leaving the EU on tough terms,” said one government insider. “They will scream treason but the reality is that all international agreements involve shared rules. The bravest free traders and Conservatives have always been pragmatists. But Nigel Farage is too cowardly to take that on; you can’t see him doing any deal with the EU at all.”
He said the move was a recognition of the importance of Britain’s trading relationship with the EU and a tacit acknowledgment of the economic damage Brexit would cause. The Office for Budget Responsibility estimates long-term productivity decline of 4% And in its most recent March 2025 forecast, exports and imports would be reduced by 15% relative to remaining in the EU.
“The EU is our largest trading market, with the EU accounting for almost half of our total trade in 2024,” he said. “We are all paying the penalty of survival for all the barriers at the border, so it makes sense to make deals to remove those barriers and minimize the damage, without breaking red lines on re-joining the customs union, the single market or returning to freedom of movement.”
Starmer’s government is looking to improve diplomatic and economic ties with the EU, Britain’s biggest trading partner, after a “reset” deal was announced following the first UK-EU summit last May and both sides agreed a “strategic partnership” aimed at closer ties. Earlier this month the prime minister said Britain would seek a deeper partnership with the EU on trade and defense because of the instability created by Trump’s war with Iran, adding that Brexit would “deeply damage” the UK economy.
The Conservatives have previously said they would insist on full parliamentary scrutiny over the final details of any negotiations with the EU, while the Liberal Democrats said they would use any bill as an opportunity to force Labor MPs to take a position on closer ties with Europe.
A government spokesman said it would be provided Statement of law at appropriate time. “Parliament will play its full constitutional role in examining, debating and shaping it,” he said. “This will allow us to deliver a food and drink trade deal worth £5.1 billion a year, supporting British jobs and cutting costly red tape for our farmers, producers and businesses.”
Andrew Griffiths, the shadow business secretary, said: “Parliament became a spectator while Brussels dictated the terms, which is what the country rejected. Labour’s heavy-handed management of the economy has prompted Starmer to rush to Brussels to distract from his own failings.
“Labour are still fighting the referendum because they cannot accept a fundamentally democratic decision taken by the British people.”
