EU demands 'Farage clause' as part of Keir Starmer's reset talks forcing Britain into 'financial compensation'

WATCH: Nigel Farage confirms Reform UK will launch judicial review over election delays

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GB NEWS

Ben McCaffrey

By Ben McCaffrey


Published: 11/01/2026

- 12:49

The deal is said to protect the EU from drastic changes that a new UK government could decide on

Brussels is pushing for a special clause in its Brexit reset talks with Sir Keir Starmer that would force any future British government to pay substantial financial compensation if they walked away from the deal.

EU diplomats have nicknamed this provision the "Farage clause", because it is designed as insurance against the possibility of the Reform UK leader entering Downing Street and tearing up Sir Keir's efforts to move closer to the bloc.


According to a draft negotiating text, the clause would apply to a proposed veterinary agreement aimed at slashing Brexit red tape for British food and drink exporters.

Both Reform UK and the Conservatives have already pledged to scrap any such deal if they win power.

Taking to social media, the Reform leader demanded that "no Parliament may bind its successor", before confirming they will "not honour any clause".

"If Starmer signs this, it’s a democratic outrage," he added.

Crucially, something that both parties hugely oppose, is the compensation. According to the text, Britain would be forced to cover the costs of establishing infrastructure and equipment, along with initial recruitment and training needed to set up border controls.

One EU diplomat described it as "a safety provision to provide stability and a deterrent for Farage and Co."

"The EU wants an agreement long-term and not only until 2029, should a change happen at the next election," the diplomat explained.

Nigel Farage is determined to win the next general election

Brussels is pushing for a so-called 'Farage clause' in its Brexit reset talks with Sir Keir Starmer that would force any future British government to pay substantial financial compensation if they walked away from the deal

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PA

The bloc has no interest in negotiating deals that could simply be ripped up when the political winds shift.

It sits at the heart of the Prime Minister's plans to improve trading ties with Brussels, alongside efforts to reconnect UK and EU carbon pricing schemes.

The deal would strip away nearly all the Brexit paperwork currently plaguing agrifood exporters.

A 2024 study reckoned it could boost UK food and drink exports by 22 per cent.

Keir Starmer and Ursula von der Leyen

Nigel Farage has accused Sir Keir Starmer of 'doing his best to give away our parliamentary sovereignty, to give away our rights as voters' to the EU

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PA

Under the draft terms, Britain would need to dynamically align with EU rules on animal and plant products as they're introduced – essentially following Brussels' lead.

Nick Thomas-Symonds, the European relations minister, has said legislation enabling this should be ready by year's end, with the deal up and running by early to mid 2027.

With Reform UK now polling significantly ahead of both Labour and the Tories, EU officials are increasingly worried their carefully negotiated agreements could unravel.

Speaking in London on Friday, Mr Farage accused Sir Keir of "doing his best to give away our parliamentary sovereignty, to give away our rights as voters."

Conservative leader Kemi Badenoch has vowed to reverse what she called Mr Starmer's "terrible deal," insisting she couldn't accept any arrangement that put Britain under European Court of Justice rulings.

Reform confirmed to the Financial Times it would scrap the veterinary agreement if the party took power.

UK government officials pointed out that termination clauses are standard in such agreements and would apply equally to both sides.

One senior Labour figure noted: "Nigel Farage is going to go into the next election saying he wants to bring back red tape, mountains of paperwork, and a greater bureaucratic burden."

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