The only idea around': will Labour return to a customs union with the EU?

"Nick Thomas Symonds, the minister in charge of EU negotiations, was promoted to full cabinet rank. The Welshman, a close ally of Starmer, will be an advocate of a closer relationship with the EU when ministers meet. But, a source close to the prime minister said, he isn't going to bang the cabinet table and say it's customs union or bust. If that happens, it has to come from Keir himself."

"That would once have seemed very likely: Starmer was long an advocate of a customs union with the EU. Way back in early 2018, the then shadow Brexit secretary came close to quitting the shadow cabinet over attempts to kick his rejoin plans into the long grass. After two more years of bitter Brexit wars, the new Labour leader whipped his MPs to back Boris Johnson's deal, arguing that while it was a dud, it was better than leaving Europe with no deal at all."

"Because the government is desperately in search of growth. Where political argument by ardent pro-Europeans failed, cold economic reality has prompted informal discussions across government about rejoining the customs union. Ministers and advisers have been quoting House of Commons analysis that found it could increase GDP by 2.2%. Before the budget, Minouche Shafik, the prime minister's economic adviser, suggested that returning to the customs union could be one of the most effective ways of generating growth."

Nick Thomas Symonds received a promotion to full cabinet rank to lead EU negotiations and advocate closer ties with the EU. The minister will press for closer relations but will not force a customs-union demand without Keir Starmer's explicit backing. Starmer previously supported a customs union but later backed Boris Johnson's deal and set red lines ruling out a return to the customs union or single market, neutralising Brexit within Labour. Economic pressures have revived informal government discussions about rejoining the customs union, with analysis suggesting a potential 2.2% GDP boost and advisers flagging growth benefits.

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