Brexit Policy Debate Intensifies As Lammy Hints At Customs Union Return

Amid mounting economic pressure and internal debate within Downing Street, the Labour Party’s position on Brexit has come under renewed scrutiny, following a series of statements by Deputy Prime Minister David Lammy. During a recent interview, Lammy repeatedly refused to rule out the prospect of reversing Brexit, instead indicating that rejoining the EU customs union could support UK economic growth.

Highlighting that leaving the European Union had, in his view, “badly damaged our economy,” Lammy referred to the experience of countries such as Turkey, which have maintained a customs union with the EU and, according to him, seen positive economic outcomes. He acknowledged that government policy does not currently support rejoining the customs union but argued that evidence of economic benefit elsewhere should not be dismissed.

Lammy’s remarks have found resonance among several senior figures, including Health Secretary Wes Streeting, who described the need to address “the economic damage done by Brexit.” This perspective also aligns with the views of key No 10 advisers and Sir Keir Starmer’s chief economic adviser, Baroness Shafik, who has reportedly suggested that rejoining the customs union would lower business costs and support exports.

Labour’s 2024 manifesto included a pledge not to return to the EU single market or customs union; however, the party faces increasing calls to reconsider this position following the Office for Budget Responsibility’s recent downgrade of UK growth forecasts. The OBR estimates that leaving the EU will reduce long-term productivity by four percent, a figure disputed by some economists but now a core issue in policy discussions.

Senior Labour sources have clarified that Lammy’s comments are subject to collective responsibility and reflect no change in policy. Nevertheless, some within government have voiced frustration, insisting that any major policy announcements will occur in Parliament rather than through media appearances or podcasts.

Opponents such as Dame Priti Patel have criticised Labour’s evolving stance, warning that closer integration with the EU would compromise the UK’s ability to set independent trade policy and control its borders. Despite this, Labour’s leadership continues to advocate for a closer trading relationship with Brussels, asserting that national interests require pragmatic engagement that ensures growth, protects jobs and lowers household costs.