Jeremy Corbyn has told Labour MPs that a Norway-style option cannot be considered by the party, but faces a party split after rebel Lords passed an amendment to the EU withdrawal bill which would keep membership of the European Economic Area (EEA) as an option.

Speaking at a private meeting of MPs in parliament, Corbyn told them there were significant issues with the Norway-option, which could leave Britain as “rule taker” without influence at EU level. He emphasised the need to unite both leave and remain supporters, according to a senior Labour source.



Quick Guide What are Brexit options now? Four scenarios Show Staying in the single market and customs union The UK could sign up to all the EU’s rules and regulations, staying in the single market – which provides free movement of goods, services and people – and the customs union, in which EU members agree tariffs on external states. Freedom of movement would continue and the UK would keep paying into the Brussels pot. We would continue to have unfettered access to EU trade, but the pledge to “take back control” of laws, borders and money would not have been fulfilled. This is an unlikely outcome and one that may be possible only by reversing the Brexit decision, after a second referendum or election. The Norway model Britain could follow Norway, which is in the single market, is subject to freedom of movement rules and pays a fee to Brussels – but is outside the customs union. That combination would tie Britain to EU regulations but allow it to sign trade deals of its own. A “Norway-minus” deal is more likely. That would see the UK leave the single market and customs union and end free movement of people. But Britain would align its rules and regulations with Brussels, hoping this would allow a greater degree of market access. The UK would still be subject to EU rules. The Canada deal A comprehensive trade deal like the one handed to Canada would help British traders, as it would lower or eliminate tariffs. But there would be little on offer for the UK services industry. It is a bad outcome for financial services. Such a deal would leave Britain free to diverge from EU rules and regulations but that in turn would lead to border checks and the rise of other “non-tariff barriers” to trade. It would leave Britain free to forge new trade deals with other nations. Many in Brussels see this as a likely outcome, based on Theresa May’s direction so far. No deal Britain leaves with no trade deal, meaning that all trade is governed by World Trade Organization rules. Tariffs would be high, queues at the border long and the Irish border issue severe. In the short term, British aircraft might be unable to fly to some European destinations. The UK would quickly need to establish bilateral agreements to deal with the consequences, but the country would be free to take whatever future direction it wishes. It may need to deregulate to attract international business – a very different future and a lot of disruption.

EEA membership, often described as the Norway option gives countries full access to the EU’s internal market, allowing it to trade goods with EU states without customs fees, except food and drinks which are subsidised by the EU. Iceland and Liechtenstein are also members of the EEA, but the terms mean accepting freedom of movement and, as a non-EU state, the UK would have to accept EU regulations with no seat at the table in Brussels.



MP John Mann warned that Labour would lose seats like his in Bassetlaw if it was perceived that the party had “watered down” its Brexit position.



Other Labour MPs also cautioned against any option which would mean retaining free movement. Sources said MPs warned colleagues that consideration of an EEA option would leave Labour vulnerable not just with leave voters, but the large percentage of remain voters who also wanted changes to free movement.

Others at the meeting made passionate speeches in favour of keeping an open mind about a Norway-style option. One source said Hilary Benn, the chair of the Brexit select committee, said Corbyn should not take options off the table.

Several Labour MPs in the room said Corbyn had not been definitive in his opposition to EEA membership, and did not categorically rule it out, but Mann said the strength of feeling in the room from other speakers against the option had “killed it off”.

“It was more than half the people that spoke, it was quite a significant moment in my view,” Mann said. “It was people who have not spoken out before, from areas like mine. They have never voted in favour of Brexit before, they voted remain.”



A senior Labour source said whipping arrangements for the EEA amendment passed by the Lords had not been discussed for when the EU withdrawal bill returned to parliament, but said Corbyn had made his opposition to a Norway-style deal.

“Jeremy made clear that from our point of view, we have set out our priorities for the Brexit negotiations, including negotiating a new customs union with the EU with Britain having a day in trade details, and a new and strong relationship with the single market, retaining the benefits ... we’ve set that out since the beginning,” the source said.



“The EEA packages that are currently in existence do not meet the needs and priorities that we’ve set out and the Norway option is not appropriate and will not work for the kind of Brexit we want to see.”

Separately, Labour sources said MP Wes Streeting challenged Corbyn in the meeting about the party’s local government election result in Barnet, where Labour failed to take the council amid accusations of antisemitism in the party.

A Labour source said Corbyn “does think antisemitism played a role in the Barnet election result ... Jeremy made clear as he set out in public statements, he is determined to eradicate anti-semitism in the party and will not tolerate it”.