Reform UK leader Nigel Farage has issued a stark warning that he will refuse to pay any financial compensation to the European Union if he enters government and tears up Labour's proposed Brexit reset agreement.
The 'Farage Clause': A Bid for Deal Stability
Prime Minister Keir Starmer is poised to agree a so-called 'Farage clause' with Brussels officials as part of his drive for a closer UK-EU relationship. This safety provision is designed to prevent a future Reform government from unilaterally axing the new deal. Brussels is demanding the UK guarantees significant compensation, potentially running into billions of pounds, should Mr Farage win the next election and follow through on his pledge to scrap Labour's attempts to reverse aspects of Brexit.
Mr Farage was unequivocal in his response, stating a fundamental constitutional principle: ‘No Parliament may bind its successor, we will not honour any clause.’ He branded the move a ‘democratic outrage’ if Sir Keir proceeds with signing it.
Starmer's Strategy of Closer Alignment
Sir Keir Starmer has made softening the UK's post-Brexit relationship a central tenet of his leadership. Ministers have already committed to following EU rules in sectors like food and farming to secure easier access to the single market. Legislation expected in the coming weeks will introduce ‘dynamic alignment’ for specific areas, meaning UK laws would automatically update to mirror new EU regulations.
This process will initially apply to food, farming, and the electricity market, with an expectation it will extend further. Despite Labour's manifesto commitment to respect the 2016 referendum result, the Prime Minister indicated last week he is open to even closer ties, stating: ‘If it’s in our national interest to have even closer alignment with the single market, then we should consider that.’
EU Fears and Tory Condemnation
Officials in Brussels, wary of political upheaval in Britain, are seeking an insurance policy to protect any new agreement from being torn up after the next election. An EU diplomat told the Financial Times the bloc wants a ‘safety provision to provide stability and a deterrent for Farage and co’, emphasising a desire for a long-term agreement not vulnerable to a 2029 election change.
A draft text suggests compensation would cover costs like infrastructure, equipment, and training needed to re-establish border controls if the deal collapsed. The move has drawn fierce criticism from the Conservatives. Tory frontbencher Saqib Bhatti said it ‘reeks of arrogance and desperation’ and shows a lack of respect for parliamentary democracy. Former Brexit minister Lord Frost warned the plans would deprive the UK of setting its own rules, while ex-home secretary Suella Braverman accused the London and Brussels establishment of despising the will of the British people.
