TUC Urges Starmer Not to Rule Out EU Customs Union Amid Cost of Living Pressure
The head of the UK’s largest trade union body has urged Prime Minister Sir Keir Starmer to keep the option of a customs union with the European Union on the table, warning that living standards must improve or public trust in mainstream politics could erode further.
Paul Nowak, general secretary of the Trades Union Congress (TUC), said the UK needs the “closest possible economic and political relationship” with the EU to help drive growth and reduce pressure on household finances.
Speaking to the BBC, Nowak argued that lowering trade barriers with the UK’s largest trading partner would benefit key industries and help ease high prices faced by consumers.
“Absolutely the government should rule nothing out,” he said. “They should look at every option for our relationship with the European Union, up to and including a customs union.”
Sir Keir has pledged to “reset” relations with Brussels but has repeatedly ruled out rejoining the EU’s single market or customs union, citing concerns that such a move could jeopardise recent trade agreements with countries including the United States and India. Labour’s election manifesto also ruled out rejoining the existing EU customs union.
However, some senior Labour figures have recently signalled openness to closer ties with Europe. Earlier this month, 13 Labour MPs supported a Liberal Democrat bill calling for negotiations on a bespoke customs union with the EU.
Nowak said industries such as aerospace, automotive manufacturing and steel depend heavily on smooth trade with Europe and are being held back by post-Brexit barriers.
“One of the reasons prices are so high in our supermarkets is because of that bad Brexit deal,” he said.
A customs union would remove tariffs on goods traded between the UK and the EU and reduce border checks, but critics argue it would limit Britain’s ability to negotiate independent trade deals and require alignment with EU trade rules.
The TUC leader also warned that failure to address the cost of living crisis could carry political risks. He cited research showing voters who feel financially insecure are turning away from Labour faster than those who feel more stable.
Polling commissioned by the TUC suggests one in five people in the UK are skipping meals, while one in three expect their financial situation to worsen in the coming months.
Nowak welcomed recent government measures such as lifting the two-child benefit cap but said further action was needed. He also urged ministers to fully implement the Employment Rights Act, which expands protections for workers including sick pay and parental leave.
A government spokesperson said ministers recognise there is more to do to support families, pointing to measures aimed at cutting energy bills, freezing rail fares and increasing the national living wage.
