Don’t rule out EU customs union, TUC boss Nowak tells Starmer

The leader of the Trades Union Congress called for “the closest possible economic and political relationship with the European Union”.

Speaking to the BBC, Paul Nowak, Britain’s most senior trade unionist, said he believed this would be “essential” to boost economic growth and warned that faith in mainstream politics could “run out” unless living standards improve.

Nowak urged the Prime Minister not to rule out a customs union with the EU, which he said would reduce barriers to trade with Britain’s biggest market.

Sir Keir Starmer said he wanted to “reset” relations with Brussels but ruled out rejoining the EU’s single market and customs union.

The Prime Minister fears recent deals with the US and India could be canceled if the UK rejoins.

Labour’s manifesto rejected membership of the existing EU customs union.

Recent senior cabinet ministers Health Minister Wes Streeting And Deputy Prime Minister David Lammy They danced around the edges of these red lines, bemoaning what they saw as the economic harm of Brexit and extolling the virtues of closer relations.

Earlier this month, 13 Labor MPs backed the Liberal Democrat bill requiring the government to begin negotiations to join a special customs union with the EU.

Conservatives and Reform oppose rejoining the UK customs union, saying it would undermine what they see as the benefits of Brexit.

A customs union would reduce red tape by eliminating tariffs or duties on goods between the UK and the EU.

But critics point out that this would also severely restrict the UK’s ability to strike special global trade deals, as the EU would impose a common tariff on all goods coming from outside the customs union area and expect the UK to comply with common standards.

In an interview with the BBC, Nowak said: “2026 really needs to be the year the government starts to tackle the cost of living crisis.”

“The bad Brexit deal is one of the reasons why we’re seeing prices so high in our supermarkets,” he said, adding: “The government should absolutely not rule anything out. They should be looking at every option for our relationship with the European Union, right down to the customs union.”

“I travel around the workplaces (aerospace, automotive, steel) weekly and it is very important to have a good deal with Europe.”

Nowak, who becomes general secretary of the TUC in 2023, also said the government needed to act on a wide range of fronts to make people feel better or risk paying a political price.

he pointed out Research by the Joseph Rowntree Foundation This shows that voters who do not feel financially secure leave Labor at higher rates than those who feel more secure.

The TUC commissioned a survey which found that one in five people skip some meals and a third expect their financial situation to worsen.

Nowak praised actions the government has already announced to help some families, such as removing the two-child benefit limit, but said the government needed to do more.

As leader of the TUC, Nowak represents 47 unions with over five million members.

The government has its ear and the message it is shouting at is this: There should be no backtracking on implementation. The newly enacted Employment Rights Act.

The legislation will give workers access to sick pay and paternity leave from the first day on the job and includes new protections for pregnant women and new mothers.

But most of the measures will not be implemented immediately, and in November Labor backtracked on a plan to give all workers the right to claim unfair dismissal from their first day on the job. Instead it will happen after a period of six months.

Conservatives say the law would place new burdens on businesses and eliminate jobs.

Nowak also called for no cap on the penalties large employers face if they try to prevent unions from organizing in their workplaces, and insisted the new rights would raise living standards by “making work pay for the job” and making employment safer.

A government spokesman said the government knew “there is more to do to help families with living costs”, pointing to Budget measures such as reducing energy bills, freezing rail fares and prescription charges and increasing the living wage, among others.

“With the passage of the Employment Rights Act and a clear commitment to its full and timely implementation, we will transform workers’ rights for the 21st Century,” they added.

Labor is trailing Reform England in the polls, but Nowak said the solution was not to “see eye to eye” on immigration.

“I don’t think you can leave Reformation behind,” he said.

“Many economically challenged people in low-wage employment feel that change is not coming, or is coming fast enough.

“But for many people there seems to be a simple answer in the Reformation.

“My job is not to tell union members they voted the wrong way. The onus is on the government to show that mainstream politics can deliver the change people want.”

But it appears that disgruntled voters are not just turning to Reform. Left candidate Andrea Egan elected this month As leader of Unison, the country’s largest union, he is calling for a change of direction from the government and a change of Labor leader.

Supporters of incumbent Christina McAnea felt her perceived closeness to the Labor leadership was hurting her chances.

Nowak said: “You only have to look at the opinion polls and the prime minister is also struggling personally.

“If the government can manage to improve living standards then I think the polls will take care of themselves. A Labor government is always at its best when it is assertive and at the forefront.”