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Economy

Don't rule out EU customs union, TUC boss tells Starmer

Don't rule out EU customs union, TUC boss tells StarmerBBCThe leader of the Trades Union Congress has called for "the closest possible economic and political relationship with the European Union". Speaking to the BBC, the UK's most senior trade unionist, Paul Nowak, said he believed this would be "essential" to boost economic growth and warned that faith in mainstream politics could "drain away" unless living standards improved. Nowak urged the PM not to rule out a customs union with the EU, which he argued would lower barriers to trade with the UK's biggest market. Sir Keir Starmer has said he wants to "reset" relations with Brussels but he has ruled out rejoining the EU's single market, and the customs union. Government must deliver workers' rights bill in full, says TUCThirteen Labour MPs vote for talks on joining EU customs unionThe PM fears that recent deals with the US and India would be scrapped if the UK rejoined. Labour's manifesto ruled out signing up to the existing EU custom union. Recently, senior cabinet ministers such as Health Secretary Wes Streeting and Deputy Prime Minister David Lammy have danced along the edges of those red lines, bemoaning what they see as the economic damage of Brexit and extolling the virtues of closer relations. Earlier this month, 13 Labour MPs backed a Liberal Democrat bill requiring the government to begin negotiations on joining a bespoke customs union with the EU. The Conservatives and Reform UK oppose rejoining a customs union, and say it would undermine what they see as the benefits of Brexit. A customs union would eliminate tariffs or taxes on goods between the UK and the EU, reducing bureaucracy. But critics point out that it would also severely curtail the ability of the UK to strike bespoke global trade deals as the EU would place a common tariff on all goods from outside the customs union area, and would expect the UK to conform to common standards. In a BBC interview, Nowak said: "2026 really needs to be the year when the government gets to grips with the cost of living crisis."He said that "one of the reasons we are seeing prices so high in our supermarkets is because of that bad Brexit deal", adding: "Absolutely the government should rule nothing out.

Paul Nowak, wearing a black suit and white shirt

Paul Nowak, wearing a black suit and white shirt

Credit: Co

Key Highlights

  • They should look at every option for our relationship with the European Union up to and including a customs union."I go round workplaces week in week out - aerospace, automative, steel - and having a good deal with Europe is essential."Nowak, who became general secretary of the TUC in 2023, also said the government must act on a wide range of fronts to make people feel better off, or risk paying a political price. He pointed to research from the Joseph Rowntree Foundation which suggested that voters who felt financially insecure were abandoning Labour at a greater rate than those who felt more secure.
  • The TUC itself commissioned polling suggesting one in five people were skipping some meals, and one in three expected their financial situation to worsen. Nowak praised action the government had already announced to help some families, such as lifting the two-child benefit cap, but said the government should do more. As TUC leader, Nowak represents 47 trade unions with a collective membership of more than five million people.
  • He has the ear of government and this is the message he is shouting into it: that there should be no backsliding on implementing the newly enacted Employment Rights Act. The legislation will give workers access to sick pay and paternity leave from the first day on the job and contains new protections for pregnant women and new mothers.
  • But many of its measures will not be implemented immediately and in November, Labour backed down from its plan to give all workers the right to claim unfair dismissal from their first day in a job.
  • Instead, it will be after a six-month period.
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Sources

  1. Don't rule out EU customs union, TUC boss tells Starmer

This quick summary is automatically generated using AI based on reports from multiple news sources. The content has not been reviewed or verified by humans. For complete details, accuracy, and context, please refer to the original published articles.

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