4th Report - UK-EU relations a decade on

Key findings

• Only one of six core Common Understanding commitments has been fully agreed—UK association to Erasmus+ at £570 million cost. Four remain in progress; UK participation in the EU's SAFE defence procurement scheme failed after the EU demanded a €6.5 billion participation fee, which the Government deemed unacceptable.
• The Sanitary and Phytosanitary (SPS) agreement would reduce border frictions on agri-food trade but requires dynamic alignment with EU standards, raising concerns among stakeholders about loss of regulatory autonomy. Trade volumes for UK beef, dairy, and chicken fell 24%, 10%, and 41% respectively between 2019 and 2025.
• Negotiations on Emissions Trading Scheme linkage and electricity trading are progressing but incomplete. Electricity market decoupling has cost the interconnector fleet €350 million annually; the UK faces the highest electricity prices in the G7, compounded by geopolitical tensions in Iran.
• No progress has been made on help for touring artists, improved business mobility, or mutual recognition of professional qualifications, despite these being identified UK ambitions. A first UK-EU dialogue on business mobility is expected in Q2 2026.
• Five key concerns about the Reset's approach: frustration at the 'rhetoric-reality gap'; limited progress on defence industrial cooperation despite European security challenges; delays in electricity trading negotiations; lack of clear long-term strategy beyond the 2026 summit; and controversy over proposals for dynamic regulatory alignment.
• The Committee found that EU Member State officials and representatives expressed confusion about the UK's strategic end goal for the Reset, with no published roadmap or policy documents outlining the Government's comprehensive vision.

Recommendations

• Government must act quickly to make more progress on the Reset and ensure future agreements include clear policy workplans and milestones for delivering outcomes.
• Reopen negotiations on UK participation in future rounds of SAFE and prioritise inclusion in the EU's 'Loan for Ukraine'. Continue bilateral defence partnerships with EU Member States and explore consolidation of the Multilateral Defence Mechanism with the Canadian-led Defence Security and Resilience Bank.
• Government must commit to consulting with businesses on the SPS agreement throughout the Reset and publish a detailed implementation plan at its conclusion, including support measures for business compliance.
• Move as quickly as possible to conclude the Emissions Trading Scheme linkage agreement and seek provisional application before formal ratification to allow industry to benefit sooner.
• Prioritise negotiations on a UK-EU agreement on energy trading, recognising that negotiations have been too slow to start and timelines for completion are too long.
• Set out the UK's specific ambitions for a Youth Experience Scheme, including participant numbers, visa timeframes, visa requirements, and the Government's position on access to home fee rates at UK universities.
• Publish underlying data to support the UK's decision to rejoin Erasmus+, provide a full cost-benefit analysis of long-term membership, and clarify the Government's view on continued association in the 2028–2034 budgetary cycle.
• Urgently prioritise improved mobility and visa arrangements for touring artists, moving beyond commitments to dialogue and delivering practical, measurable outcomes supporting the UK's creative industries.
• Clearly identify priority services sectors for improved business mobility and set out precise objectives and clear timelines for delivery from the EU.
• Develop and publish a clear strategic vision and regulatory roadmap setting out the UK's end goal for UK-EU relations, making explicit what the Government is seeking to achieve beyond 2026.

Key actors

Liam Byrne, Sir Chris Bryant MP, Keir Starmer, Ursula von der Leyen, Tom Bradshaw, Oriel Petry, Matt Hinde, National Farmers' Union