The Labour party is grappling with internal divisions over Brexit, particularly amplified by statements from potential leadership contenders Wes Streeting and Andy Burnham, as a critical by-election in Makerfield looms. Reform leader Nigel Farage has seized on these debates, accusing Labour of "preparing to completely betray Brexit voters" and targeting Greater Manchester mayor Andy Burnham's nuanced stance.

Wes Streeting, former Health Secretary, explicitly declared his intention to stand in a future Labour leadership race, stating on Saturday that "Britain's future lies with Europe" and branding Brexit a "catastrophic mistake." He expressed a desire for the UK to one day be "back in the European Union" and advocated for a new "special relationship" with the trading bloc.

Andy Burnham, contesting the Makerfield by-election, has adopted a more cautious position. While acknowledging a "long-term case" for re-joining the EU, he insists he is "not advocating" it in the by-election campaign. Burnham emphasized a "relentless domestic focus" for Britain, advocating for the re-industrialization of the country, particularly in areas like Makerfield, and reforming education to prioritize technical paths. He has said Brexit was "damaging" but stressed the importance of respecting the referendum result, arguing that the UK must "move beyond" Brexit divisions. Farage, however, criticized Burnham, claiming he would "say one thing" to voters in the Leave-voting constituency (65% voted to leave in 2016) and another to Labour MPs, labeling him "open-borders Burnham."

The Makerfield by-election is becoming a flashpoint in this debate, with Reform UK, which performed well in local elections in the area, planning to use "Brexit betrayal" as a key attack line. Burnham has explicitly stated, "I am not proposing that the UK considers rejoining the EU." He intends to use the by-election to highlight the neglect of places like Makerfield, criticizing four decades of neoliberalism, deindustrialization, deregulation, and austerity that he argues have devastated communities across the North of England. He also implied his ambition to replace Keir Starmer, stating, "If I get to stand, a vote for me will be a vote to change Labour, because Labour needs to change if we are to regain people’s trust."

The government has reacted angrily to Labour's leadership hopefuls' interventions. Culture Secretary Lisa Nandy, seen as an ally to Burnham, rebuked Streeting, calling his focus on Europe "odd" and arguing against "reopening the Brexit wars." She suggested a more "pragmatic approach" to Europe rather than suggesting a return to the pre-Brexit status quo. Tory Kemi Badenoch stated the row exposes Labour's lack of a plan for the country. Keir Starmer, meanwhile, insisted he would not set out a timetable to leave No 10 and wanted to fight the next election, acknowledging recent lack of focus within the party.

The broader debate about the UK's relationship with the EU presents several options, each with significant challenges. Full-fat EU membership, a "moonshot" scenario, would likely require overwhelming public support (potentially 60-70% in a referendum) and intense technical negotiations, including unstitching the withdrawal agreement, with the EU potentially prioritizing accession talks for Ukraine and Moldova. Alternative "halfway house" options include a Swiss-style deal, which offers frictionless access to the single market and other programs in exchange for free movement and payments (rejected by Boris Johnson due to regulatory alignment requirements), or a Norway-style agreement through membership of the European Economic Area (EEA), which also requires accepting free movement and EFTA membership (previously rejected by Starmer). The current "status quo" under Starmer involves bit-by-bit alignment, though critics argue its economic impact is minimal. The EU has shown openness to flexible ideas, as seen with the Swiss deal, but also tires of constantly updating agreements with third countries.