Burnham warns EU 'Made in Europe' plan would damage UK industry

Prime Minister Andy Burnham has warned that planned EU rules designed to shield European manufacturers would damage the UK, as he raised the issue directly with European Commission President Ursula von der Leyen.

The proposals, formally called the Industrial Accelerator Act and branded "Made In Europe", would give companies inside the bloc priority for public contracts and subsidies. The stated aim is to protect EU industry from Chinese competitors. Burnham met von der Leyen during a UN summit in New York, where he said he was concerned about how British industry and supply chains could be affected.

The scheme is yet to be finalised. But the EU's car industry has already called for the UK to be included, in order to prevent disruption to its supply chains.

Tensions over the proposed scheme have reportedly delayed this year's planned EU-UK summit further. That summit had already been postponed following Sir Keir Starmer's resignation as prime minister in July.

Speaking on the flight to the US, Burnham argued Britain and the EU face the same competitive pressures and should not be treated as adversaries.

"We have considerable support among the member states for the position we are taking, because Europe's argument is not with us," Burnham said.

"We both suffer the same effects as other countries, particularly steel and the issue it raises for the steel industry in Europe and in Britain."

"We are making the argument 'we are not your enemies here… we are not the problem'. Made in Europe is dealing with a different problem."

He added: "We are making the argument that 'let's avoid collateral damage'."

The steel sector is the sharpest point of contention. Burnham's framing suggests London wants carve-outs for British suppliers in any preference regime Brussels builds for its own manufacturers, rather than opposition to the scheme itself.

No pledge on rejoining — yet

Burnham also declined to rule out committing to rejoining the EU in Labour's next manifesto, describing the question as an issue "for another day". He said his immediate priority was rebuilding the relationship with the EU and reaching an agreement that would boost the British economy.

Asked if he would rule out a pledge to rejoin at the next general election, Burnham pointed to the delayed summit as his focus.

"Our focus at the moment is on a UK-EU summit which we hope will take place later this year," he said.

"My immediate priority is to build on the good work that Keir [Starmer] did in rebuilding bridges, because those bridges were broken in the early part of this decade."

He added: "What we have got to do is now go to the next level in terms of reaching practical agreement that will further boost the British economy, and those issues are the substance of the summit alongside EU requests around youth mobility."

Salovaara: 'The doors are open'

On Monday, the EU's new ambassador to the UK, Jukka Salovaara, was asked at the Liberal Democrat conference in Brighton whether the UK could rejoin the EU or be granted associate membership.

"The doors are open but it's very much up to the UK public to identify and decide on its level of ambition when it comes to deepening cooperation with the EU," Salovaara said.

The EU has recently suggested Canada could become the bloc's first "associate member". Asked if that model could apply to the UK, Burnham said: "The European Union made it clear that that wasn't open to us."

The prime minister's own record on the question is nuanced. Last September, Burnham said he would like to see the UK back in the EU in his lifetime. Earlier this year, he said Brexit had been "damaging" but "the last thing we should do right now is re-run those arguments".

Ten years after Brexit

Burnham told reporters his speech to the UN General Assembly would reflect on the decade since the Brexit vote and warn about interference in British politics.

"Turbulence comes when outside actors seek to manipulate, to distort facts, influence the British democratic process," he said.

"Going into the next decade, we need to be clear-eyed about that and become stronger and more on the front foot about challenging that."

Burnham also expects to find "common ground" with Trump in their first meeting, according to a separate report.

The immediate commercial stakes sit with the Industrial Accelerator Act. If Brussels presses ahead with contract and subsidy preferences that exclude UK-based suppliers, British manufacturers embedded in European supply chains — steel and automotive above all — would face a concrete cost. The delayed EU-UK summit, now expected later this year, is where Burnham will have to convert his claim of "considerable support among the member states" into exemptions before the rules are finalised.