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Burnham's Brexit Rethink: What it Means for Labour, Reform, and Britain's Economy
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CNBC TV18•01-10-2026, 23:33
Burnham's Brexit Rethink: What it Means for Labour, Reform, and Britain's Economy
  • •Andy Burnham's shifting stance on Brexit could reignite the debate over Britain's relationship with the European Union, with options ranging from a limited customs union to rejoining the EU.
  • •The possibility of rejoining the EU is now being considered as a viable option, moving beyond Brexit as a settled question.
  • •A Labour manifesto commitment to return to the EU could transform the next general election into a de facto referendum on Brexit, influenced by changing voter demographics.
  • •The rise of the pro-Brexit Reform Party, led by Nigel Farage, adds an electoral dimension, potentially making Brexit a central issue in the next election.
  • •Economic concerns, including lower productivity, reduced trade, and a stagnating economy since Brexit, provide a strong backdrop for reconsidering closer ties with Europe.

Key Questions Answered

Prime Minister Andy Burnham has indicated that his government could consider several alternatives, ranging from keeping the current Brexit arrangement or establishing a limited customs union to ultimately opting out of Brexit entirely and rejoining the EU in full.

If Labour includes returning to the EU in its manifesto for the mid-2029 general election, it would effectively turn that election into a referendum on Brexit, allowing voters to decide the issue through their ballot rather than holding a separate immediate vote.

Reform, led by Nigel Farage, is seeing a strong resurgence in opinion polls and remains firmly committed to Brexit, providing Labour with its principal challenge at the next election and giving the issue a direct electoral dimension.