Sir Keir Starmer is offering to align with EU carbon levies as part of a wider reset with Brussels, threatening to drag the UK into a trade stand-off with President Trump.
The prime minister will host an EU-UK summit on May 19 in London as he seeks to ease trade barriers with Brussels. He is proposing deeper co-operation with Brussels on the EU carbon border adjustment mechanism (CBAM), a way of calculating taxes on high-polluting industries.
Businesses have said that without an EU deal, the UK could end up paying £800 million a year in green taxes to Brussels, money that would otherwise go to HM Revenue & Customs.
Sir Keir Starmer is proposing deeper co-operation with Brussels on the EU carbon border adjustment mechanism
LEON NEAL/AFP/GETTY IMAGES
However, trade experts have warned that Britain could stumble into Trump’s trade war with the EU
