Labour Debates EU Ties: Starmer Rules Out Customs Union, Lammy Hints at Economic Benefits of Closer Links

December 7, 2025
Labour Debates EU Ties: Starmer Rules Out Customs Union, Lammy Hints at Economic Benefits of Closer Links
  • Health Secretary Streeting and other Labour figures advocate closer EU links to mitigate Brexit-driven economic damage.

  • Chancellor Reeves suggests Brexit has had larger economic effects than forecast and Labour is pushing to rebuild EU ties to reduce extra costs.

  • Starmer seeks to reset relations with Brussels to spur growth, yet maintains red lines against the single market and customs union, signaling a continued break from pre-Brexit Labour policy.

  • Lammy argues Brexit removed the UK from a key marketplace and created friction, criticizing Leave campaign promises and stressing the future remains closely tied to the EU.

  • Lammy’s remarks spark political pushback and ignite discussions among MPs and advisers about Brexit’s economic impact ahead of Labour’s policy choices.

  • Labour faces a nuanced debate over closer EU ties as Deputy Prime Minister signals potential economic benefits of rejoining aspects of the EU, while Keir Starmer remains firmly opposed to rejoining the customs union or the single market.

  • Lammy acknowledges Brexit’s economic drawbacks and hints at the possibility of closer EU links, but reiterates that rejoining the customs union is not on Labour’s current agenda.

  • The broader political context shows ongoing tension between pursuing closer EU ties and maintaining Brexit-era policies.

  • Starmer publicly condemns using Brexit as a foreign policy template, stressing respect for the Brexit vote while acknowledging past missteps in how it was sold and delivered.

  • The OBR warns of a four-percentage-point long-run productivity loss from Brexit, underscoring ongoing economic costs.

  • Starmer’s campaign sharpens Labour’s critique of Brexit and centers Brussels relations as part of efforts to counter Reform UK, including a London speech labeling Brexit as recklessly pursued.

  • Labour’s chief secretary to the Treasury notes policy will be announced in Parliament, not on podcasts, signaling formal party positioning.

Summary based on 3 sources


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