Don’t Rule Out EU Customs Union, TUC Boss Tells Starmer
The leader of the Trades Union Congress (TUC), Paul Nowak, recently urged for the closest possible economic and political relationship with the European Union. He emphasized that strengthening ties with the EU is essential for boosting economic growth and warned that public trust in mainstream politics could drain away if living standards do not improve.
Importance of a Customs Union with the EU
Nowak encouraged Prime Minister Sir Keir Starmer not to dismiss the possibility of a customs union with the EU, arguing this would reduce trade barriers with the UK’s largest market. Starmer has expressed a desire to reset relations with Brussels but has ruled out rejoining the EU’s single market and customs union.
Key points to consider:
– Thirteen Labour MPs recently supported a Liberal Democrat proposal to initiate discussions on joining a bespoke customs union with the EU.
– The Prime Minister is concerned that rejoining could jeopardize recent trade agreements with the US and India.
– The Conservative Party and Reform UK oppose the idea, arguing it would undermine the benefits of Brexit.
A customs union could eliminate tariffs on goods between the UK and the EU and reduce bureaucratic hurdles. Critics, however, argue that it would significantly limit the UK’s ability to negotiate its own global trade agreements, as the EU would impose common tariffs on imports from outside the customs union area.
Nowak highlighted the pressing issue of the cost of living, stating: 2026 really needs to be the year when the government gets to grips with the cost of living crisis. He attributed rising supermarket prices to the challenges posed by a bad Brexit deal, insisting that the government should explore all options in its relationship with the EU, including a customs union.
– Key Findings:
– Research from the Joseph Rowntree Foundation indicates that financially insecure voters are leaving Labour at a higher rate than those who feel secure.
– TUC polling shows that one in five individuals are skipping meals, while one in three expect their financial situation to worsen.
Action Required to Improve Living Standards
Nowak commended recent government actions, like lifting the two-child benefit cap, but advocated for more robust measures. As the TUC represents 47 trade unions with over five million members, Nowak’s voice carries weight. He has urged the government not to backtrack on the newly enacted Employment Rights Act, which aims to provide workers with essential rights such as sick pay and paternity leave from the first day on the job.
Despite Labour’s earlier plans to extend the right to claim unfair dismissal from day one to a six-month waiting period, Nowak remains focused on ensuring that workers’ rights are upheld.
– He stressed that penalties for companies attempting to prevent union organization should be unlimited, asserting that such protections would enhance living standards by making work pay and ensuring employment security.
A government spokesperson acknowledged the challenges facing families with the cost of living, citing budget measures designed to alleviate financial burdens, such as energy bill reductions and an increase in the living wage.
The Political Landscape and Future Prospects
Labour currently trails Reform UK in the polls. However, Nowak insists that the answer is not to mirror Reform’s stance on immigration. He remarked, I don’t think you can out-Reform Reform. Many voters in low-paid employment feel that substantial change has yet to materialize, with simplistic solutions appearing appealing.
Nowak emphasized that the onus is on the government to prove that mainstream politics can deliver meaningful change. The discontent is not limited to Reform; the recent election of left candidate Andrea Egan as the leader of Unison has drawn attention to a desire for a shift in direction within Labour.
If the government can improve living standards, then I think the polls will look after themselves, he stated, reiterating that a Labour government excels when it is ambitious and proactive.
In conclusion, the discussion around a customs union with the EU is critical for both economic stability and public trust in governance. Nowak’s call for a more integrated relationship with Europe underscores the urgency of addressing the cost of living crisis while affirming the necessity for robust workers’ rights in this evolving political landscape.