Starmer’s EU Deal Branded ‘Astonishingly Bad’, Threatens British Industry

By Matt • Breaking Brexit News • 13 June 2026

Sir Keir Starmer’s proposed new deal with the European Union has been savaged as “astonishingly bad” by a former Thatcher-era minister who oversaw Britain’s entry into the single market. The deal, which involves “dynamic alignment” with Brussels’ regulations, is predicted to pile costs on British companies and stifle innovation across the UK economy.

Conservative peer Peter Lilley, formerly Secretary of State for Trade and Industry, has issued a stark warning in a new report. He claims the Labour-negotiated deal will force Britain to align with EU rules in numerous areas, a move he believes is detrimental to the national interest.

The Cost of Alignment: A Threat to British Business

Lord Lilley’s report highlights that this “unilateral submission” to EU regulations will not significantly benefit British exporters, who already conform to EU rules. Instead, it will burden the 92 per cent of British firms that do not export to the EU with overregulation, mirroring the issues that have crippled EU economic growth.

He argues that the EU’s strategy is to ensure the UK is seen to have gained as little positive as possible from leaving the bloc, thereby discouraging other member states from following Britain’s example. This approach, he suggests, is designed to extract maximum concessions from the UK.

Thatcher-Era Minister Slams Labour’s “Triumph of Hope Over Experience”

Over our 28-year membership British goods exports to the EU grew less than 1% a year, while our exports to countries we had no trade deal with grew four times as much – by 87%. In a triumph of hope over experience, the Government is pursuing a ‘reset’, making dynamic alignment with EU rules the norm across our economy. This unilateral submission won’t help our exporters (who already conform to EU rules) but will burden the 92% of British firms that don’t export to the EU with the overregulation which has crippled EU growth. And the EU expect us to pay them for this.

— Lord Peter Lilley, Former Secretary of State for Trade and Industry

Lord Lilley, who once predicted single market membership would boost British exports but was “proved wrong,” criticises Labour’s belief that participation in the single market would “magically boost UK exports and economic growth.” He points to historical data showing dismal growth in British goods exports to the EU during the UK’s 28-year membership, contrasting it sharply with growth to countries without trade deals.

• Sir Keir Starmer’s new EU deal is labelled “astonishingly bad” by a former Thatcher minister.
• The deal proposes “dynamic alignment” with EU regulations, threatening to impose significant costs on British businesses.
• Lord Lilley warns the EU aims to make the UK’s post-Brexit experience appear negative to deter other member states.
• Rejoining the Erasmus+ scheme is projected to cost £570 million, vastly more than the current Turing scheme (£110 million).
• A proposed veterinary (SPS) deal could burden British food producers with 76 new regulations and directives, costing an estimated £1 billion.
• Merging UK and EU emissions trading schemes is expected to cost British industry £1.1 billion annually.
• Rachel Reeves’ declaration that aligning with EU regulation should be the norm, not the exception, has caused alarm.
• The Policy Exchange report suggests the EU will be the primary beneficiary of an agri-food deal, exporting nearly four times the amount the UK sends back.
• Lord Lilley suggests ministers mistakenly believe a “friendly, Europhile government will be offered a better deal.”
• He urges ministers to “pull back before signing away any more of Britain’s interests.”

What This Means for Britain

This proposed deal could translate directly into higher prices for everyday goods and services for working families across Britain. New regulations and increased costs for businesses will inevitably be passed on to consumers, impacting your weekly shop and household bills at a time when the cost of living is already a major concern.

The economic impact is clear: British industry faces billions in new costs, threatening jobs and deterring vital investment. This “unilateral submission” to Brussels risks stifling innovation and growth, undermining the very economic freedoms Brexit was meant to deliver.

Politically, this represents a dangerous pattern of capitulation, where promises of taking back control are replaced by aligning with foreign regulations. It signals a failure of leadership to protect Britain’s interests and risks undoing the hard-won sovereignty of our nation.

The stakes are incredibly high. If this deal proceeds, Britain risks being locked into a regulatory framework that prioritises the EU’s interests over our own, with long-term consequences for our economy, our freedoms, and our standing in the world. We must demand better for our country.

This “astonishingly bad” deal must be seen by every British voter. Share this report and demand answers from your MP. Britain deserves better than a return to Brussels’ control.