Keir Starmer talked up his drive to secure closer ties to the EU today - despite signs Brussels is already using its leverage to demand cash.

The PM is in Armenia for a meeting of the European Political Community, meeting counterparts including Emmanuel Macron.

Arriving at the summit, Sir Keir said he wants the UK to participate in the EU's £78billion loan for Ukraine.

He suggested that will be a 'very important' step towards 'resetting' relations after Brexit, with crucial negotiations due this summer.

But there are already concerns about what concessions the premier will make in order to get deeper links with the bloc.

Sources told the Times there is no prospect of the UK 'cherry-picking', pointing out that Switzerland pays hundreds of millions of pounds a year for access to the single market. 

The UK's economy is around four times bigger than Switzerland, suggesting its annual contribution could top £1billion. 

Shadow foreign secretary Priti Patel said: 'Starmer is unpicking Brexit and planning another undemocratic hit job on British taxpayers by signing us up to a £1billion annual payment to the EU. 

'Once again, this weak Prime Minister goes to the negotiating table, comes home empty-handed, having fleeced hard pressed taxpayers with his terrible judgment.' 

 A Government spokesman said: 'We won't comment on ongoing negotiations.'

The King's Speech is set to propose legislation to allow ministers to adopt EU single market rules without giving MPs a vote every time.

The Government is looking at what sectors could benefit most from following Brussels rules, with the focus on chemicals, pharmaceuticals and cars. 

Speaking to media as he arrived at the European Political Community (EPC) summit, Sir Keir said: 'In relation to the EU loan that we are discussing participating in, that is very good for Ukraine, because it will give Ukraine capability that is desperately needs in year five of this conflict.

'It's very good for the UK, because of the capability that leads to jobs in the United Kingdom.

'And it's very good for UK-EU relations, which is very important as we go on to the various discussions.'

Sir Keir reiterated his desire for closer links with the EU in an article for the Observer yesterday, saying of Brexit: 'It has damaged our economy and there's no doubt in my mind where the national interest lies.

'Britain must be at the heart of a stronger Europe on defence, on security, on energy, and on our economy.'

Sir Keir and Mr Macron have co-chaired a meeting on Ukraine.

Attendees included Ukrainian President Volodymyr Zelensky, Italian Prime Minister Giorgia Meloni, Poland's premier Donald Tusk, Norwegian Prime Minister Jonas Gahr Store, Nato chief Mark Rutte, European Commission president Ursula von der Leyen and vice president Kaja Kallas, and European Council president Antonio Costa.

Canadian Prime Minister Mark Carney, the first leader of a non-European country to attend the EPC, also participated.

Sir Keir will tell allies that Britain wants to work more closely with them to ensure Kyiv gets the military equipment it needs to continue its fight against Russia.

The UK will also impose further sanctions on Russian companies later this week in a bid to disrupt military supply chains, according to Downing Street.

Access to the loan initiative could create opportunities for British defence firms to compete for contracts under the scheme.

The bid to participate in the scheme – recently approved by the EU after Viktor Orban's defeat in Hungarian elections ended a long-running impasse.