UK prime minister says a Brexit reversal could be considered in future manifesto

Prime Minister Andy Burnham told the BBC that a referendum on re-joining the European Union could be placed in a future election manifesto, although he said such a vote would not be appropriate at the present time. He added that the United Kingdom must "consider the options" for its relationship with the EU, arguing that the current arrangement is "not good enough."

Burnham, who became prime minister in the summer after succeeding Keir Starmer, ruled out calling an early snap election. In a separate interview on the BBC’s Today programme, he said the UK could remain in its present position, pursue a customs union, join the single market, or seek full membership, leaving the decision to the public.

Speaking at Labour’s annual conference, Burnham claimed that "Brexit hasn't given us control" and warned that the country needs a long-term relationship with its largest trading partner to secure growth and prosperity.

Economists noted that while the idea of a new referendum is politically significant, any economic benefits would depend on concrete changes to trade rules that could take years to negotiate. James Smith of ING said the public’s appetite for re-joining is uncertain and that the EU may be reluctant to make concessions given recent UK political volatility. Steve Nolan of Liverpool John Moores University cited estimates that the UK’s GDP is 5-8% lower than it would have been without Brexit, noting that re-entry would involve trade-off costs such as possible euro membership and free movement of labour.

Financial-services commentator Nigel Green said a closer UK-EU relationship could boost sterling and narrow equity discounts, but warned that capital could also flow out if domestic tax and policy conditions are not improved.

"We could stay as we are. That's definitely an option, if people think this is the right place to stay," Burnham said.

"Later this year, there will be a U.K.-EU summit," he added.

"The U.K. would also be asking to be let back into the club from a weakened bargaining position and may have to accept many conditions — such as euro membership and free movement of labour — that may cause economic and political difficulties," Nolan said.

"Sterling stands to gain from a steadier relationship with the U.K.'s biggest trading partner," Green said.