Labour Divisions Emerge Over Potential EU Customs Union Rejoin
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A growing rift within the Labour Party is surfacing as prominent figures push Prime Minister Sir Keir Starmer to reconsider a closer relationship with the European Union, specifically rejoining the EU customs union.
The debate, fueled by concerns over sluggish economic growth following Brexit, is creating a significant internal challenge for Starmer as he navigates the political landscape ahead of the next general election. While proponents argue that re-entry into the customs union would stimulate trade and deliver on Labour’s economic promises, opponents fear alienating key segments of the party’s traditional voter base.
The Case for Closer Ties
Advocates for rejoining the EU customs union contend that it would drastically simplify trade with the bloc, eliminating current checks and tariffs. This move, they believe, would unlock substantial economic benefits. A Labour insider stated: “People are well aware that the new arrangements with the EU agreed earlier this year only bring limited economic benefits. And you would have to go much further to realise bigger economic benefits.” The insider further suggested that a more integrated approach is now seen as essential for achieving meaningful economic growth.
The push is being spearheaded by influential figures including Alastair Campbell, former Director of Communications and Strategy for Prime Minister Tony Blair, Tim Allan, Downing Street’s current director of communications, and Tom Baldwin. Reports indicate Campbell is “fanatical” about rejoining the EU, while Allan has increasingly attributed the UK’s economic challenges to the consequences of Brexit.
Prime Minister Starmer himself has already signaled a willingness to improve relations with the EU, agreeing to a “reset” in May that included concessions on youth visas and fishing rights, with a projected economic boost of £9 billion. It is also claimed that Brexit has already reduced economic growth by 4%.
Risks of Alienating Core Voters
However, the proposal is not without significant opposition within Number 10. Concerns are mounting that a move towards rejoining the customs union could drive working-class voters who supported Brexit towards Nigel Farage’s Reform UK party.
A senior Labour MP confirmed the internal debate, stating: “There is an active debate going on in Downing Street about whether they should put rejoining the customs union into the next manifesto. It would take us beyond simply going back to the EU regulatory regime.” The MP cautioned, “I think it would be a huge mistake. It would make the next general election, which is going to be extremely difficult, even more difficult because traditional Labour voters, many of whom we have lost, who voted to leave the EU are unlikely to come back if that was a manifesto commitment.”
The Path Forward
The debate highlights the complex political calculations facing the Labour Party. Rejoining the EU customs union would necessitate abandoning trade deals negotiated since Brexit, a move that could be portrayed as a betrayal by some. While proponents believe a majority of the British public would support rejoining the EU, the risk of further fracturing the electorate remains a significant hurdle. The coming months will be crucial as Starmer weighs the potential economic benefits against the political costs of revisiting the Brexit question.
