TL;DR
Lord Spencer Livermore, Financial Secretary to the Treasury, told the House of Lords on 2 June 2026 that UK re-entry to the EU is 'an inevitability' (personal view). The government's official position remains no re-entry. The remarks focus attention on the Labour reset agenda and its implications for UK households.
Last reviewed 3 June 2026
Key facts
- Lord Spencer Livermore made the remarks in the House of Lords on 2 June 2026 during a debate.
- He is Financial Secretary to the Treasury, in post since 8 July 2024.
- Livermore cited estimates that Brexit cost the UK between 4 and 8 per cent of GDP.
- He framed the remarks as personal view, not government position.
- The Labour government's official position remains that the UK will not rejoin the EU, single market or customs union.
What was actually said
Speaking in the House of Lords on 2 June 2026, Lord Spencer Livermore, Financial Secretary to the Treasury, said in response to a question on UK-EU relations: 'Should we, in due course, re-enter the European Union? Well, of course, my personal view is that that is an inevitability. Of course, the UK will at one point re-enter the EU because it's absolutely in our national economic interest.'
Livermore cited estimates that Brexit had cost the UK between 4 and 8 per cent of GDP and said ministers were currently attempting to 'mitigate at the margins' the wider economic impact. He explicitly framed his remarks as personal view rather than government policy.
Livermore is a long-standing Labour strategist, formerly chief strategist to Gordon Brown, and was a high-level figure in Labour's 2024 general election campaign. He has been Financial Secretary to the Treasury since 8 July 2024 under Chancellor Rachel Reeves.
The government's actual policy position
The Labour 2024 election manifesto ruled out re-entry to the EU, the single market and the customs union. The Prime Minister Sir Keir Starmer has repeatedly restated that position. The current government strategy is described as a 'reset' of relations, involving:
A new UK-EU security and defence partnership announced in 2025; a sanitary and phytosanitary (SPS) agreement to reduce food and animal product checks at borders; closer alignment on emissions trading and carbon border adjustment; a youth mobility scheme under discussion; and continued cooperation on policing and data sharing.
None of these amount to single market or customs union re-entry. They do represent a gradual narrowing of post-Brexit divergence in specific sectors.
What a deeper UK-EU relationship could mean for households
Three areas where a deeper UK-EU reset would have direct household impact:
Food and goods prices: Sanitary and phytosanitary checks at the UK-EU border add cost to food imports. An SPS deal would reduce that cost. ONS data suggests food inflation in 2022 to 2024 was approximately 6 percentage points higher in the UK than in equivalent EU member states partly due to border friction.
Travel: Full EES rollout for UK travellers entering the Schengen area is in progress through 2026. ETIAS pre-travel authorisation (£17, equivalent) is scheduled to follow. A deeper relationship could ease some of these requirements. The UK government has no current plan to rejoin Schengen.
Pensions and financial services: UK pension scheme members living in EU member states have faced complications since Brexit, including limits on certain product transfers and tax treatment changes. A deeper relationship could simplify cross-border arrangements. The Financial Conduct Authority and the European Securities and Markets Authority operate separate regimes.
Advisory: Statements from individual ministers do not change government policy. The 'reset' agenda announced through 2025 and 2026 is incremental, not a re-entry programme. Households planning around assumptions of EU re-entry should treat them as long-horizon scenarios rather than active policy.
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Disclaimer
This article is for general information only and does not constitute financial, legal, tax, insurance, or investment advice. Kael Tripton Ltd is registered with the Information Commissioner's Office (ICO ZC135439) as a data controller but is not authorised by the Financial Conduct Authority. Figures and rules are correct at time of publication and may change. Always check the primary source linked below before acting on any information, and seek advice from a qualified professional for your specific circumstances.
Sources
Frequently asked questions
Is the UK actually rejoining the EU?
No. The government's official position is that the UK will not rejoin the EU, single market or customs union. Lord Livermore's remarks were framed as personal view.
Who is Lord Livermore?
Lord Spencer Livermore is Financial Secretary to the Treasury, in post since 8 July 2024 under Chancellor Rachel Reeves. He was previously a Labour strategist and chief strategist to Gordon Brown.
How much did Brexit cost the UK economy?
Estimates vary. Livermore cited 4 to 8 per cent of GDP. The Office for Budget Responsibility has used around 4 per cent in its long-run modelling. The Bank of England has published research with similar ranges.
What is the UK-EU 'reset'?
A package of incremental agreements announced through 2025 and 2026 covering defence, food and animal product trade (SPS), emissions trading, and policing. It does not amount to single market or customs union re-entry.
