Sir Keir Starmer is to set out new laws in May that allow him to import a wave of legislation from Brussels. The measures, to be announced in the King’s Speech, when the Government outlines its plans for the next 12 months, are part of Labour’s EU “reset” designed to bring the UK back into line with Europe’s single market.

They mark part of a planned pivot following local, Scottish and Welsh elections on May 7, when Labour is likely to suffer big defeats. The Prime Minister is also reported to be planning a Cabinet reshuffle in which Left-wingers such as Angela Rayner could be brought back into the heart of Government.

In a speech last week, Chancellor Rachel Reeves insisted: “Where it is in our national interest to align with EU regulation, we should be prepared to do so – including in further areas of the single market.”

She said a “deeper relationship” with the EU could lead to “higher growth and investment, more jobs and consumer benefits for the long term”.

According to the Financial Times, the planned EU Bill will create a mechanism for bringing laws made in Brussels back into UK law – reversing a key part of Brexit.

The Government hopes this would lead to a new food and agriculture trade deal with the EU, and potentially more deals in the future.

It is part of a change of approach by the Prime Minister, who is reportedly also determined to water down planned immigration reforms championed by Home Secretary Shabana Mahmood after previously suggesting tough measures were essential.

A Cabinet reshuffle could shift the Government to the Left, bringing back Ms Rayner and former transport secretary Louise Haigh into the top team.

Sir Keir is also considering sacking Health Secretary Wes Streeting, who is on the Right of the party. Mr Streeting has been the subject of claims that he is plotting to replace the Prime Minister, which he vehemently denies.

There could be a return for Lucy Powell, the former leader of the Commons, who was sacked by Sir Keir in September 2025 but went on to be elected Labour’s new deputy leader. She is on the soft Left of the party and close to Andy Burnham, the Greater Manchester Mayor, who is seen as a potential leadership contender.

The most difficult decision facing the Prime Minister is whether to sack his Chancellor. Sir Keir said last year that Ms Reeves would keep her job “into the next election and for many years after”, after she was seen crying during Prime Minister’s Questions.

But he is now considering replacing her to signal that the Government is making a fresh start.