Labour Signals Support for EU Customs Union Amid Growing Pressure
Labour is increasingly signaling backing for a customs union with the EU as a distinctive policy stance ahead of the next general election. A recent interview with Wes Streeting highlighted this shift, amidst internal pressure within the party to pursue closer ties with the EU. YouGov polling indicates that 80% of Labour voters in 2024 support negotiating a customs union with the EU, while 73% back talks to rejoin the EU.
Some Labour MPs and cabinet ministers advocate a deeper EU relationship, viewing the current caution about the EU reset as insufficient for economic growth. However, Downing Street maintains red lines against returning to the customs union, single market, or freedom of movement. Government officials argue that changing these stances could derail independent trade deals.
Several obstacles remain for closer EU ties, including the costs of Brussels' concessions, stalled negotiations on defence cooperation under the Safe fund, and youth mobility schemes, where Brussels seeks an uncapped scheme and lower fees. There are also ongoing delays on a food standards deal.
Meanwhile, UK–US trade relations are seen as having limited growth impact, with suspensions of deals and terms of the tech prosperity deal affecting the perceived benefits of an independent policy. As the next election approaches, pressure within Labour to rejoin or deepen EU ties grows, while government officials suggest current manifesto red lines may only be temporary until the election.
