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The Leader's very notable shift on the Britain's after-Brexit ties to the bloc recently was designed to send a message to industry, to EU officials, and to European partners, in addition to his own backbenchers.

A New Process for Dialogue

Stronger post-Brexit trade links are projected to be looked at as within an regular schedule of bilateral talks rather than just at the ongoing structured evaluation of the UK-EU deal.

This served as the official answer to parliamentary pressure regarding a broader Brexit reset that entailed returning to the EU customs bloc.

Internal Pressure

Several MPs, trade union officials and senior ministers have joined calls to suggestions formalised by legislative actions last year that culminated in a advisory motion.

"We are better prioritising the European single market rather than the customs union for our future cooperation," the leader said.

He gave a clear answer that rejoining the tariff union was not the priority, as it undermines what he regards as a key achievement of the previous year: the securing of best-in-class deals with the US and India, with more in the pipeline in the Gulf region.

Prioritising the Internal Market

In place of the customs union, his focus is on building a "closer relationship" with the EU's single market, which would avoid ripping up those recently signed agreements globally.

When the UK formally left the EU in the start of 2021, the prevailing deal stressed liberation from EU standards instead of frictionless trade for British firms to the continent.

The ongoing new approach envisages harmonising with EU regulations in several sectors to facilitate the easier passage of trade: agri-food goods, power, and carbon trading.

Industry Demands

A major business group last month issued a detailed set of further requests in other sectors to aid exporters overcome new bureaucratic hurdles that has hit the export of products.

Its own survey found that a significant number of member firms believed that the current arrangement was not helping commercial success.

A range of additional sectors could, potentially, see a parallel method – harmonisation with single market rules – in exchange for lowering trade obstacles across production, in vehicles, industrial chemicals, or for example in arrangements for VAT.

Continental Response

European capitals were underwhelmed by the limited scope in the previous recalibration, notably the UK dismissal of suggestions advanced by some experts regarding the virtual readmission of British exports to the single market.

The precise arrangements on electricity and agricultural regulations is yet to be agreed. A proposal for UK companies to be involved in a major defence loan fund has been delayed over the cost of the contribution, after reservations from the French government. Canada has signed up to the scheme.

Wider Environment

The UK has agreed a deal to return to a student mobility programme and to discuss a youth jobs scheme. This has facilitated progress for ongoing dialogue.

Some UK insiders say that the recent publication of a Washington policy paper has shifted the environment on UK ties to the EU.

The paper noted that the US would "encourage pushback" to Europe's current trajectory and praised the "increasing clout" of certain political parties.

In government circles, there is some recognition that the global landscape has shifted once more.

Political Considerations

At home, the leadership also foresees being challenged on EU relations not only one political rival, but also another, which is targeting its stronghold regions in local votes.

The Prime Minister's weekend remarks are borne of a confluence of economics, politics and geopolitics as the UK starts a year that will mark the decade milestone of the historic Brexit referendum.