EU uncertainty is damaging British business, says minister

'Long-term relationship' with EU must be resolved, says Reynolds, in advance of new talks

British business is being damaged by uncertainty about the UK's relationship with the EU, business secretary Jonathan Reynolds has said, as he heralded new talks with Brussels about strengthening long-term ties.

Reynolds said UK officials would talk to the EU about "options", after Prime Minister Andy Burnham opened the door to Britain readopting free movement of people, a customs union, single-market membership and potentially even rejoining the bloc.

Some Labour MPs have expressed concerns about reopening the Brexit debate but Reynolds said that policies coming from Brussels were causing serious problems for UK manufacturing and had to be addressed.

Proposed new EU procurement and subsidy rules known as "Made in Europe" would impact UK companies, along with questions of EU steel tariffs and issues around the rules of origin for electric vehicles, he said.

"We can't have this every single time," Reynolds told the BBC. "We have to resolve what the long-term relationship will be . . . Every day I'm talking to British business who have concerns and uncertainty."

Reynolds said the priority for the UK was negotiating a limited new trading relationship with the EU at a summit in Brussels on November 20: the meeting will focus on new rules for trade in foodstuffs, the linking of carbon markets and a youth mobility scheme.

The government denied it was already talking to Brussels about the long-term "options" being floated by Burnham, which the prime minister will set out in a speech after the Brussels summit.

However, Reynolds confirmed that the EU would be consulted before Burnham set out the options.

Burnham has said that he would honour Labour's Brexit "red lines" in this parliament -- no return to a customs union, single market, free movement or EU membership -- but will set out his favoured future relationship with the bloc at the next election.

Melanie Onn, Labour MP for the Leave-voting town of Grimsby, said: "I don't think the scars have healed for many people." She added: "I think this is an unnecessary discussion to be having at this time."

Reform UK leader Nigel Farage noted that Burnham said that the idea of British officials talking in Brussels about the possibility of restoring free movement was "very poor indeed".

Reynolds declined to say whether Burnham consulted the cabinet before reopening the free movement debate. Shabana Mahmood, home secretary, is said by Labour insiders to be frustrated that the issue has resurfaced as she tries to reassure voters on migration.

Mahmood told MPs on Monday: "The prime minister has been discussing having an open debate; that is not the same as settled policy."

"The prime minister has also observed that there were very significant issues with freedom of movement when we were in the EU," she added.