Keir Starmer's government is increasingly discussing a potential return to the EU customs union, driven by a desperate search for economic growth. The promotion of Nick Thomas-Symonds, the minister for EU negotiations, to full cabinet rank signals a shift towards closer ties with Europe. A source close to the prime minister said Thomas-Symonds will advocate for closer relations, but “he isn’t going to bang the cabinet table and say it’s customs union or bust.”
Starmer, once a strong advocate of a customs union, had previously ruled out such a move as part of his “red lines” to neutralise Brexit. However, cold economic reality has prompted informal discussions across government. Ministers and advisers have cited House of Commons analysis suggesting rejoining the customs union could increase GDP by 2.2%. Before the budget, the prime minister’s economic adviser Minouche Shafik suggested it could be one of the most effective ways to generate growth.
“It’s the only idea around that would radically raise growth at the next election,” said one cabinet source. Another added: “It’s a very live question. The customs union is one of the big levers that we could pull. But it would be a big decision to do it before the next election.” Starmer himself has recently emphasised the need for a closer trading relationship with the EU, acknowledging the “botched Brexit deal significantly hurt our economy.”
Despite the growing traction, supporters of rejoining warn that talking about economic damage is not enough. Negotiations for the EU’s defence fund collapsed last week, and talks on food exports and energy markets remain stuck. Polling suggests the public mood is shifting, with less rigidity on the former red lines. A senior government figure said: “The public has moved on from Brexit but the Westminster bubble hasn’t.”
