Keir Starmer talked up his drive to secure closer ties to the EU today – despite signs Brussels is already using its leverage to demand cash.
The PM and European Commission chief Ursula von der Leyen agreed they wanted to strike an ‘ambitious’ deal at a summit this summer.
In talks on the sidelines of a gathering of leaders in Armenia, the pair said that a deep pact would be ‘for the benefit of both sides’.
Arriving at the European Political Community meet earlier, Sir Keir said the UK is keen to participate in the EU’s £78billion loan for Ukraine.
He suggested that contribution – expected to be around £400million – will be a ‘very important’ step towards ‘resetting’ relations after Brexit.
However, there are already concerns about what concessions the premier will make in order to get deeper links with the bloc.
Keir Starmer is in Armenia for a meeting of the European Political Community, meeting counterparts including Emmanuel Macron
Sir Keir and Emmanuel Macron have co-chaired a meeting on Ukraine this morning
Sources told the Times there is no prospect of the UK ‘cherry-picking’, pointing out that Switzerland pays hundreds of millions of pounds a year for access to the single market.
The UK’s economy is around four times bigger than Switzerland, suggesting its annual contribution could top £1billion.
The Tories accused Sir Keir of plotting another ‘hit job’ on Brits by making them hand money to Brussels.
A Government spokesman said: ‘We won’t comment on ongoing negotiations.’
The King’s Speech is set to propose legislation to allow ministers to adopt EU single market rules without giving MPs a vote every time.
The Government is looking at what sectors could benefit most from following Brussels rules, with the focus on chemicals, pharmaceuticals and cars.
Challenged on what contributions could be made to EU budgets, Sir Keir said: ‘It’s in our national interest to be closer to Europe.
‘And whether that’s the EU loan scheme, which we are discussing with them, that’s of great benefit to Ukraine, but it’s also a great benefit to the United Kingdom as well, in terms of the jobs that it will create in the United Kingdom.
‘So the benefit there outweighs the cost.
‘But more generally, it is important that we see our future as a closer relationship with the EU that’s in our national interest, and that’s what I’ve been discussing here and on previous occasions.’
In a joint statement after their talks, Sir Keir and Ms von der Leyen said they had discussed their commitment ‘to improving the relationship between the UK and EU to deliver for consumers, businesses and collective European security’.
‘We also reflected on the UK’s plan to participate in the EU’s €90 billion/£78 billion loan for Ukraine, and agreed it would be a major step forward in the UK- EU defence industrial relationship,’ the statement said.
‘We underlined our unwavering support for the Ukrainian people and applauded their resilience and courage in recent weeks and months.
‘We also agreed to commence negotiations on UK participation in the European Innovation Council Fund, including the Scaleup Europe Fund, which will provide support for promising high-growth tech businesses to scale up and support UK and EU ambitions to keep the most promising innovators in Europe.
‘We looked ahead to the UK-EU summit and agreed on the importance of being ambitious in what we could achieve together for the benefit of both sides.’
Speaking to media as he arrived at the summit, Sir Keir said: ‘In relation to the EU loan that we are discussing participating in, that is very good for Ukraine, because it will give Ukraine capability that is desperately needs in year five of this conflict.
‘It’s very good for the UK, because of the capability that leads to jobs in the United Kingdom.
‘And it’s very good for UK-EU relations, which is very important as we go on to the various discussions.’
Sir Keir reiterated his desire for closer links with the EU in an article for the Observer yesterday, saying of Brexit: ‘It has damaged our economy and there’s no doubt in my mind where the national interest lies.
‘Britain must be at the heart of a stronger Europe on defence, on security, on energy, and on our economy.’
Sir Keir and Mr Macron have co-chaired a meeting on Ukraine.
Attendees included Ukrainian President Volodymyr Zelensky, Italian Prime Minister Giorgia Meloni, Poland’s premier Donald Tusk, Norwegian Prime Minister Jonas Gahr Store, Nato chief Mark Rutte, European Commission president Ursula von der Leyen and vice president Kaja Kallas, and European Council president Antonio Costa.
Canadian Prime Minister Mark Carney, the first leader of a non-European country to attend the EPC, also participated.
Sir Keir told allies that Britain wants to work more closely with them to ensure Kyiv gets the military equipment it needs to continue its fight against Russia.
Sir Keir is underlining the UK’s support for Ukraine at the gathering in Armenia
The UK will also impose further sanctions on Russian companies later this week in a bid to disrupt military supply chains, according to Downing Street.
Access to the loan initiative could create opportunities for British defence firms to compete for contracts under the scheme.
The bid to participate in the scheme – recently approved by the EU after Viktor Orban’s defeat in Hungarian elections ended a long-running impasse.
Responding to the suggestion Britain will pay into EU coffers for trade access, Kemi Badenoch said: ‘The public voted to leave the European Union. What governments and politicians of all colours need to do is find a way for us to get our strategic competitive advantage while we’re out to the EU.
‘Paying £1billion is the worst of all worlds, because then we’re paying money to the EU, we’re taking their rules, but we have no say over them. That’s the wrong way round.’
Shadow foreign secretary Priti Patel said: ‘Starmer is unpicking Brexit and planning another undemocratic hit job on British taxpayers by signing us up to a £1billion annual payment to the EU.
‘Once again, this weak Prime Minister goes to the negotiating table, comes home empty-handed, having fleeced hard pressed taxpayers with his terrible judgment.’
EU relations minister Nick Thomas-Symonds said he did not ‘recognise’ the £1billion a year figure.
Asked if that was right, he told BBC Radio 5 Live: ‘In terms of financial contributions, as I say on safe I took the view in that case that it wasn’t value for money, wasn’t in the national interest, and this is how I judge it, case by case.
‘If you look at just before Christmas, the Erasmus Plus Programme, which is about exchanges, not just for students, but for those pursuing vocational qualifications, for adult learners, those who might want to do on a professional basis, there, I negotiated a 30 per cent discount, and it did represent a value for money.
‘So on financial contributions the previous government, for example, the Horizon Research Programme, made a contribution. It is always about those two principles, national interest, value for money, and that’s how I’ll continue to judge it.’
