David Lammy talks up customs union amid efforts to rebuild UK-EU ties

Deputy prime minister David Lammy has suggested that countries within a customs union tend to see stronger economic growth as Downing Street steps up efforts to rebuild the UK’s relationship with the EU.

Lammy said it was “self-evident that leaving the European Union badly damaged our economy” while other states had benefited from closer economic alignment.

Speaking on The News Agents podcast, he emphasised that rejoining the EU customs union was “not currently where we are”, but added that countries within a customs union tended to see stronger economic growth.

“Countries like Turkey with a customs union are seemingly benefiting and seeing growth in their economy,” said the former foreign minister.

Lammy’s remarks mark a departure from Labour’s established line, which has emphasised making Brexit work as it is, rather than revisiting its core structures.

Throughout the election campaign and early months in office, Labour repeatedly ruled out rejoining the single market, customs union or EU institutions, wary of reopening a politically fraught debate.

Yet, Lammy’s comments come after Prime Minister Sir Keir Starmer signalled a desire for closer ties with the EU in two speeches this week, fuelling speculation that he could follow the advice of his chief economic adviser, Minouche Shafik, and consider a return to the customs union.

At Prime Minister’s Questions this week, Starmer said the UK was “getting a closer relationship with the EU on a number of fronts”, but stressed that Labour’s “clear red lines” on the single market and customs union remained unchanged.

Detailed discussions are already under way between Brussels and London in areas such as reducing friction in food trade and energy markets, alongside plans for Britain and the EU to facilitate more youth movement and student exchanges.

But Lammy went further, saying that Brexit “took us out of an important marketplace and created serious friction” as he was asked repeatedly whether he believed Britain should rejoin the customs union.

“Our future is inextricably linked to the European Union and we should be working deliberately over time to be closer, that’s my view,” he said.