The prime minister has ruled out a return to the common market, saying he cannot see Britain re-entering the trading agreement in his life time. Sir Keir has also made it a red line in his ongoing post-Brexit reset with Brussels. But the mayor of London has said returning to the market should not be ruled out, despite acknowledging there is little hope of Britain rejoining in the short term.
The government’s own analysis has suggested that rejoining the single market would boost GDP by around 3.5 per cent compared with the current EU trade deal, but such a move would come with the return of freedom of movement – another of Sir Keir’s red lines. Mr Khan said, however, that barriers to trade with the UK’s closest neighbours should come down and the single market was “something we shouldn’t be scared to talk about”.
The prime minister has made resetting relations with the European Union a priority, although it is not clear how much can be achieved within his red lines, which include ruling out a return to the single market or customs union. He also said he has no plans to sign up to a youth mobility scheme which has been proposed by Brussels.
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