London Mayor Sadiq Khan to say he can't ignore 'immense' Brexit damage

Mayor of London Sadiq Khan is set to attack what he will describe as the government's "denial" of the "immense damage" he says Brexit is doing.

In a speech at Mansion House in the City of London, he will call for a shift to greater alignment with Europe.

The Labour mayor is expected to say the consequences of leaving the EU "can't be airbrushed out of history".

In contrast, Sir Keir Starmer has ruled out rejoining the EU single market if Labour wins power.

In November, Chancellor Jeremy Hunt ruled out a revised trade deal with the European Union, after reports he wanted the UK to have a Switzerland-style relationship, with closer alignment with EU rules and fewer restrictions on migration.

In a speech to London's business leaders, Mr Khan will say: "I simply can't keep quiet about the immense damage Brexit is doing.

"Ministers seem to have developed selective amnesia when it comes to one of the root causes of our problems.

"Brexit can't be airbrushed out of history or the consequences wished away."

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He will point to the economic effects of Brexit, and argue for a new approach to "sensibly and maturely mitigate the damage that's being inflicted".

In October 2021, the independent Office for Budget Responsibility estimated that Brexit would reduce GDP [economic output] by 4% in the long term, compared with the UK staying in the European Union.

Downing Street said its position had not changed.

The prime minister's official spokesman said: "The British people set out their view back in 2016 and the government is busy enacting."

Trade with EU 'rebounding'

The government has described the trade deal struck with the EU in December 2020 as "the world's largest zero tariff, zero quota free trade deal".

"It secures the UK market access across key service sectors and opens new opportunities for UK businesses across the globe.

"Despite difficult global economic headwinds, UK-EU trade is rebounding, with recent data showing that UK trade to both EU and non-EU countries is above pre-Covid levels".

In his speech, Mr Khan will say: "After two years of denial and avoidance, we must now confront the hard truth: Brexit isn't working.

"It's weakened our economy, fractured our union and diminished our reputation. But, crucially, not beyond repair.

The Northern Ireland Protocol is part of the UK's Brexit deal that keeps Northern Ireland aligned with the EU's single market for goods

"We need greater alignment with our European neighbours - a shift from this extreme, hard Brexit we have now to a workable version that serves our economy and people."

He will acknowledge that "no one wants to see a return to the division and deadlock" of recent years, but call for a "pragmatic debate" about the benefits of the EU's customs union and single market.

While the mayor's criticism is aimed at the government, it will also be seen as a swipe at the recent harder stance on Brexit taken by his party leader.

Like Mr Khan, Sir Keir campaigned for Remain in the 2016 referendum and later for a second referendum.

But he has recently ruled out a return to the EU's single market.

Speaking in Belfast on Thursday, the Labour leader said: "Look, we have left the EU and there is no case for re-joining the EU or for going back into the single market.

"But what I do think we need to do is move beyond what I think is a pretty inadequate deal... and make Brexit work. And that is my priority."

Sir Keir has said Labour would fix holes in the government's Brexit deal - in part by devolving some powers from Westminster to local communities.

Sadiq Khan will denounce what he calls an "extreme Brexit" being pursued by the Conservatives.

In his speech, he will reel off a litany of statistics to suggest London and the UK as a whole have been hit hard by leaving the EU.

But there is economics and there is politics.

The London Mayor's call for a "pragmatic debate" is a challenge to his own party leader.

Sir Keir Starmer has ruled out a return to the single market, because it would entail accepting the free movement of people as well as goods,

And the voters he is trying to woo in former Labour strongholds may be wary of a party that signs up to uncontrolled EU migration.

In those areas Labour's strategy is to argue it will deliver on the Brexit slogan, "take back control", by moving more powers from Whitehall to local areas.

Sadiq Khan's intervention doesn't quite sing from that songsheet,

But it will strike a chord with many grassroots Labour Party members and some backbench MPs who think their leadership can afford to be more critical of the government's version of Brexit.

Correction January 26 2023: This article was amended. We wrongly stated that the OBR had forecast Brexit would reduce GDP by 4% a year rather than 4% overall in the long term.