UK officials suggested establishing a single market for goods trade with the European Union as part of the next phase of its post-Brexit reset, the BBC has learned.
Industry figures briefed on the proposal said the idea has not been taken forward after EU skepticism, with attention now focusing on existing negotiations over food, farm, and energy trade. However, the move signals significant ambition for a closer economic relationship ahead of a summit expected in July.
Chancellor Rachel Reeves and Prime Minister Sir Keir Starmer have publicly called for deeper EU ties, but until now little detail had emerged beyond talks on single market treatment for food, farm products, electricity, and emissions trading.
According to sources, UK officials suggested the summit agenda could include frictionless trade within a UK-EU single market for all goods. A European Commission spokesperson declined to comment on the specific proposal but said they "see scope to deepen" industrial defense cooperation.
The UK government did not confirm specifics but acknowledged that a range of options were put to the EU in recent months, with conversations ongoing. British business groups have been briefed on the EU's pushback, citing incompatibility with UK red lines such as freedom of movement.
Some ministers believe recent shifts in US policy toward Europe may encourage continental capitals to consider economic reintegration with the UK more flexibly.