Britain’s main opposition party is clear that Britain should stay in the European Union but believes the 28-member bloc should be reformed, newly-elected Labour party leader Jeremy Corbyn stated yesterday.

In an opinion piece for the Financial Times, Corbyn, a left-winger who is more cautious on the EU than many of his colleagues, has moved to end confusion over his party’s stance on the issue after senior figures seemingly adopted conflicting positions.

Conservative Prime Minister David Cameron is seeking to renegotiate the terms of Britain’s EU membership and plans to hold a referendum by the end of 2017 on whether to remain in or to leave. Despite a heavy election defeat in May, Labour remains influential in northern England and Wales and could be key to deciding whether Britons vote to remain in the bloc.

“Labour is clear that we should remain in the EU. But we too want to see reform,” Corbyn wrote.

Labour is clear that we should remain in the EU but we too want to see reform

He also warned Cameron that if he failed to deliver “a good package” or delivered one that reduced social gains Britain had previously won, “he needs to understand that Labour will renegotiate to restore our rights and promote a socially progressive Europe”.

After four days of mixed messages over his stance on the EU and referendum, Corbyn earlier told the BBC he could not imagine a situation when Labour was campaigning to leave the bloc.

“What I was opposed to, and I remain opposed to, is the idea that David Cameron could go around Europe and give up workers’ rights, and give up environmental protection, give up a whole load of things that are very important,” he said.

On Tuesday, a survey by the pollster ICM showed that 43 per cent of voters favoured staying in, 40 per cent would opt to leave, and 17 per cent were undecided.

Corbyn said he wants to see Europe pursuing a more social agenda rather than becoming a free-market haven. That position potentially puts him at odds with the reforms Cameron is seeking, which include restricting migrants’ access to benefits and reducing barriers to trade in the single EU market.

On Wednesday executives of Britain’s foreign-owned carmakers that are strong supporters of the open markets created by its membership of the EU, said they would not shut their plants were the country to leave the bloc, though future investment could be at risk. Britain’s car industry has been vocal on the benefits of EU membership and pro-EU campaigners have warned an exit could lead to job losses in an industry employing almost 800,000 people. However, executives at the Frankfurt auto show said their British plants were not at risk were the country to leave.

“We made our plans, we’ve announced the investments... and they were in full knowledge that there was a referendum so we believe in the UK,” said Kevin Rose, board member for sales at Volkswagen-owned Bentley.

“Regardless of the outcome, we think that the UK is a good place for investment.”

Fellow luxury carmaker Rolls-Royce, which makes all its £200,000-plus models in England, said Britain was central to the brand’s popularity among the super-rich around the world. Britain's car industry has undergone a renaissance over the last few years with production expected to reach an all-time high of 1.95 million cars in 2017.

Several executives said that, if Britain left the EU, future investments would depend on the kind of deal it struck with other European nations on issues such as trade.

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