Labour officials under Keir Starmer say Britain could face around £5 billion a year in extra costs if a future government tried to rejoin the EU, largely because the UK would likely lose Margaret Thatcher’s budget rebate.

Officials believe the EU would not require Britain to join Schengen or adopt the euro, but freedom of movement would be non-negotiable.

Rejoining the EU or entering a customs union could also undermine post-Brexit trade deals.

Both UK and EU officials are privately sceptical of Andy Burnham’s suggestion that he could reverse Brexit, while Brussels is also wary of continued changes in British policy.

Source: Bloomberg