Labour in U-turn over referendum on EU membership

Labour has performed a major u-turn and dropped its opposition to an in/out referendum on EU membership, the party's acting leader Harriet Harman has said.

Ms Harman said her party would now support David Cameron's planned referendum bill, clearing a path for a UK-wide ballot by the end of 2017.

The announcement is a change of direction for the party which had rejected calls for a referendum under Ed Miliband's leadership during the general election campaign.

Writing in the Sunday Times (£), Ms Harman and the shadow foreign secretary Hilary Benn admitted voters wanted a say on membership, but warned against a "Brexit" or British exit.

In a joint article Ms Harman and Hilary Benn said the EU should be reformed. Credit: Lynne Cameron / PA Wire/PA Images

Ms Harman and Mr Benn said Labour supported efforts to reform the union, including freedom of movement rules.

They wrote: "Like many people and businesses, we want reform in Europe - on benefits and the way the EU works - and transitional controls on the free movement of citizens from any new member state wanting to work in Britain.

"We will hold the Prime Minister to account on these. But the EU itself needs to recognise the growing demand from countries across Europe that want more devolution of power and a recognition that the EU must work for those countries that are and will remain outside the euro."