Labour's efforts to secure a Brexit "reset" deal with the European Union before the next general election are at risk of collapsing amid a dispute over trade. The two sides disagree over a "made in Europe" law progressing through the European Parliament, designed to shield the continent's manufacturers from global competition, particularly China, by giving EU firms priority for public contracts and subsidies; Britain wants to be included, fearing industries such as car manufacturing and steel would otherwise suffer.

Labour has reportedly offered concessions including cutting tuition fees for EU students to match domestic rates and lifting the cap on a youth mobility scheme, potentially granting visa-free access to up to 100,000 under-30s. The EU is said to be insisting these concessions form part of any wider agreement while ruling out UK participation in the "made in Europe" scheme. A summit, originally planned for July, has been delayed to at least November, with an EU diplomatic source suggesting Brussels may prefer to wait until after Britain's 2029 election if no summit takes place this year.