Sir Keir Starmer is trying to postpone the toughest part of Brexit reset negotiations as he scrambles to get a workable deal in place before any possible leadership challenge against him.
Britain and the EU had planned to agree a package of deals on food and drink trade, carbon taxes and under-30s visas at a summit this summer.
But the EU is sceptical about pressing ahead with the next summit because of the political turmoil in the UK, The i Paper has been told.
There is still no date set, with both London and Brussels sources claiming that the EU is reluctant to agree to the meeting until it becomes clearer whether Starmer will be replaced as Prime Minister by Andy Burnham or another challenger.
“There are so many questions and so much uncertainty, it might be wise to wait,” an EU source said following reports the summit could be delayed until after summer, which would risk Starmer being ousted before the reset he started comes to fruition.
The negotiations also remain at an impasse over EU demands for its citizens to be charged lower university tuition fees in the UK.
The i Paper has learnt that the Prime Minister’s negotiators are now proposing to delay the stickiest aspect of reset talks – on university fees for European students – in return for potentially dropping a red line in this area.
The idea would be to strike deals on under-30s visas – known as a ‘youth experience’ scheme – as well as food and drink trade and aligning carbon taxes, while deferring discussions on fees until later.
Doing so would allow a summit to go ahead sooner rather than later.
It would also allow the UK to consider a so-called grand bargain in which ministers could agree to lower university fees, but only if the EU can offer something big on the economy in return, for example shielding UK companies from the impact of protectionist EU “Made in Europe” policies.
But the proposal has been met with scepticism from the EU, which has been adamant that a deal on fees must be part of any youth experience agreement.
Proposing to slash university fees for EU students would also risk a Cabinet row in the UK, with Home Secretary Shabana Mahmood and her predecessor Yvette Cooper, now Foreign Secretary, thought to be against lowering fees for European citizens amid concerns over immigration and the diplomatic impact of special treatment for the bloc.
While there is no date yet for the next summit and with talks at an impasse, sources on both sides remain keen to stress that a meeting could be set up quickly.
Brussels ‘waiting for Burnham’s fate in Makerfield by-election’
One EU source suggested Brussels would be more willing to move once the results of the Makerfield by-election are known on 18 June, and Burnham’s next steps on the leadership are clearer.
But the suggestion of a climbdown on tuition fees has been met with fury from universities, amid warnings the sector faces a £580m hit if it has to charge EU students lower domestic fees, capped at up to £9,790, compared to higher international fees which can reach £30,000 or even higher.
Hollie Chandler, director of policy at the Russell Group of elite universities, told The i Paper: “We are keen to see more progress in rebuilding our relationship with the EU.
“A new deal could bring benefits for people across the country and improve opportunities for young people to study and work abroad.
“But a deal that risks taking over £500m out of our sector won’t be good news for universities, or for the Government’s opportunity and growth ambitions.
“At a time when universities are already under significant and sustained pressure, this financial hit would further undermine a sector that is one of the UK’s biggest exports”.
‘The two sides are too far apart’
Anand Menon, director of the UK In A Changing Europe think-tank, suggested Britain was moving on tuition fees as the price of getting a deal in other areas.
“The UK is starting to realise that the EU will only budge when it gets what it wants,” he told The i Paper.
Menon doubted that the EU would agree to the plan to delay talks on fees. “I don’t think the EU will let us get away with getting what we want and coming back to tuition fees later,” he said.
He also warned that the entire reset was at risk due to the gap between the two sides on the EU’s demands for the largest youth visa scheme possible.
“I’d be quite surprised if it happens at all. The two sides are too far apart.”
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