Labour wants to stay in some form of reformed single market

Labour would try to stay in a “reformed single market” if it was conducting Brexit negotiations, John McDonnell has said, in a fresh signal of the party’s support for a “soft” withdrawal from the European Union.

The shadow chancellor said he stood by his assertion that remaining inside the single market under current rules, which include accepting free movement of EU citizens, would not respect the Brexit referendum result.

However, he said Labour in government would seek a “negotiated relationship” to ensure “tariff-free access” to “a single market” and “a customs union”.

Discussing shadow Brexit secretary Sir Keir Starmer’s comments that Labour would seek to remain “aligned” with EU rules to ensure the UK can retain the benefits of single market membership, Mr McDonnell said: “What I said is that remaining within the single market would not respect the referendum result.

“What we’ve been using as the phraseology, a single market, not the single market, and a customs union not the customs union, so therefore a reformed single market or a new negotiated relationship with the single market – and (Sir) Keir was actually putting our position yesterday.”

He added: “We want to be as close as we possibly can to ensure tariff-free access.

“It isn’t just about semantics, it’s about choosing the objectives that we want overall, which is protecting the economy and protecting jobs.

“That for us means as close a relationship with the single market as we can and possibly a customs union. We want to keep all options on the table.”