Senior Labour figures are increasingly vocal in their calls for the UK to seek a deeper trading relationship with the European Union, including rejoining a customs union, piling pressure on Prime Minister Keir Starmer.
Ministers Break Ranks to Demand Closer EU Ties
Health Secretary Wes Streeting has become the most prominent cabinet minister to publicly stray from the government's official line. In a recent interview, he argued that pursuing "a deeper trading relationship" with the EU would provide a powerful political message to counter Nigel Farage's Reform UK.
This move echoes Starmer's own decisive intervention in 2018, when he defied then-leader Jeremy Corbyn to call for a second Brexit referendum. Streeting's comments are seen by Westminster observers as aligning him with the Labour membership and voters, who overwhelmingly favour stronger European links.
Deputy Prime Minister David Lammy has also suggested rejoining a customs union would be desirable, citing benefits seen by countries like Turkey. They are not alone; a growing number of Labour MPs and even senior ministers privately view the government's promised EU "reset" as unambitious and believe closer ties could boost economic growth.
Post-Brexit Trade Deals Fall Short of Promises
The political push coincides with mounting scrutiny of the UK's independently negotiated trade agreements. Downing Street has repeatedly ruled out customs union membership, arguing it would jeopardise these deals.
However, their value is being questioned. The much-heralded UK-US trade deal agreed in May, while applying lower baseline tariffs to British exports than EU goods, is estimated to have a negligible impact on economic growth. One senior business figure labelled such agreements "performative".
Furthermore, a key "tech prosperity deal" with the US has been suspended over wider disagreements. Other deals, including with India, face similar criticisms regarding their tangible economic benefits.
Starmer's Red Lines Under Siege Ahead of Next Election
The confluence of political and economic pressures is making the pledge to rejoin a customs union increasingly difficult for Starmer to resist. YouGov polling indicates 80% of 2024 Labour voters support negotiating a customs union, with 73% backing talks to rejoin the EU entirely.
While No. 10 insists its manifesto "red lines"—ruling out a return to the customs union, single market, or freedom of movement—hold until the next election, the language is seen as outdated by many in the party. One minister suggested that after doing all they can with their inherited framework, "some sort of commercial union with our neighbours may be the next place to go."
Significant practical hurdles remain, notably the challenge of negotiating with Brussels. Recent talks for UK defence firms to join an EU fund collapsed over cost, and youth mobility scheme discussions are stalled due to EU demands for an uncapped scheme and lower student fees.
The government faces an uphill battle to deliver its limited existing promises, even as the clamour grows to move faster and further in rebuilding relations with Europe.
