The PM is pushing for closer ties with the bloc under huge pressure from Europhile Labour MPs and ministers, arguing it can boost the economy.

Legislation expected as soon as next month could sign the UK up to EU rules on food standards, the electricity market, animal welfare and pesticide use.

That has been billed as implementing a deal agreed last year, but Sir Keir has already made clear he wants to go further – while stressing that fully rejoining the customs union and single market are off the table. 

Downing Street said today there were “clear, indisputable benefits of closer alignment”.

Brussels sources have been making clear the Government will have to “pay to play” if Labour wants to remove more barriers.

Diplomats told the Financial Times that the bloc’s “red lines” meant the UK would have to obey EU rules and contribute to its budget.

Another official questioned whether there was any appetite in Europe for another renegotiation.

“Brussels is now preoccupied with the Ukraine war, European rearmament and internal negotiations over the next budget cycle,” they said. 

“There is no remaining bandwidth at this point, while arguably there might have been back in July 2024.”

Sir Keir sparked a storm at the weekend by telling the BBC that he was looking at better access to the single market.

“I think we should get closer and if it’s in our national interest to have even closer alignment with the single market, then we should consider that,” he said. 

“If it’s in our interest to do so, we should take that step.”

Critics fear the PM will be forced into more concessions as he desperately hunts for ways of saving his leadership.

The EU is pushing for a ‘youth’ free movement deal that could mean large numbers of people coming to the UK to work. 

Before Christmas the government announced it is paying £570 million to rejoin the Erasmus student exchange programme.

On an annual basis the sum is double what Boris Johnson rejected as too expensive in 2021. 

It is equivalent to roughly a fifth of the entire EU funding envelope for Erasmus+, although the Government insists a chunk of the money will go on travel for British youngsters.