The new Labour government is increasingly viewing a closer relationship with the European Union as a key driver of economic growth. A notable personnel change saw Nick Thomas-Symonds, the minister in charge of EU negotiations, promoted to full cabinet rank. As a close ally of Prime Minister Keir Starmer, he is expected to advocate for deeper ties, though a source said he would not demand a customs union “or bust”.
Starmer was a long-time advocate of a customs union with the EU, nearly resigning as shadow Brexit secretary in early 2018 over attempts to sideline rejoin plans. However, after the 2019 election, he whipped Labour MPs to back Boris Johnson’s deal, arguing it was a dud but better than no deal. He later set “red lines” ruling out a return to the customs union or single market.
In recent weeks, the issue has regained traction due to the government’s desperate search for growth. Informal discussions across government have considered rejoining the customs union, with ministers citing House of Commons analysis showing a potential 2.2% increase in GDP. A cabinet source said: “It’s the only idea around that would radically raise growth at the next election.”
Starmer himself has hinted at a shift, writing in the Guardian that “the botched Brexit deal significantly hurt our economy” and calling for a closer trading relationship. In a speech, he argued people must be “grown up” about trade-offs. However, supporters warn that rhetoric alone is insufficient, and negotiations on joining the EU’s £131bn defence fund recently collapsed after France demanded a £5.7bn contribution.
Despite stalled talks on food exports and energy markets, public opinion is softening. Polling suggests less rigidity over red lines, though a senior government figure noted that “Westminster hasn’t” moved on. The drumbeat towards closer ties is reflected in the cabinet, where pro-European voices are growing.
