TUC Leader Calls on Starmer to Tackle Cost‑of‑Living Crisis by Deepening EU Trade Ties — but Brexit Red Lines Hold Firm
LONDON, 27 Dec 2025
Paul Nowak, General Secretary of the Trades Union Congress (TUC), has intensified pressure on Prime Minister Sir Keir Starmer to pursue a closer economic relationship with the European Union — including reconsidering membership of an EU Customs Union — in order to address Britain’s cost‑of‑living crisis and sluggish growth. However, Starmer continues to reject such a move, insisting on maintaining the government’s Brexit “red lines” to avoid jeopardising existing trade deals. The Guardian+1
Nowak’s Push for Closer EU Ties
In a major interview with The Guardian and the Financial Times, Nowak argued that the UK’s current post‑Brexit trading framework is harming investment, increasing consumer costs and failing to support long‑term economic growth. He described closer ties — up to and including rejoining a customs union with the EU — as a way to ease trade frictions, protect jobs and help families struggling with rising prices. The Guardian+1
Nowak also warned that the Labour government’s focus on other issues, such as migration reform, shouldn’t distract from economic priorities. He emphasised the ongoing cost‑of‑living pressures faced by ordinary households, with recent polling showing many families feeling economically worse off. The Guardian
Starmer’s Response: Firm Red Lines
Despite Nowak’s calls, Prime Minister Starmer has firmly ruled out rejoining the EU Customs Union or single market, repeatedly arguing that doing so would risk undoing trade agreements with key partners like the United States and India — deals that Labour insists are crucial to the UK’s future economic strategy. Government statements have highlighted new UK‑EU arrangements designed to reduce border red tape and boost exports without reversing Brexit. GOV.UK
A Downing Street spokesperson reiterated that while improving trade relations with the EU is a priority, manifesto commitments on Brexit architecture remain unchanged. Starmer’s stance is that the UK can deepen cooperation with Brussels without relinquishing sovereignty over migration, tariffs or independent trade policy. The Sun
Business and Trade Group Reactions
The British Chambers of Commerce (BCC) has also weighed in, urging the government to pursue closer EU trade ties as a “strategic necessity” for British firms struggling under the current Trade and Cooperation Agreement. Recent surveys show a growing proportion of exporters regard the post‑Brexit deal as unhelpful, with frustrations over customs checks and regulatory divergence. The Guardian+1
Some senior Labour ministers, including Health Secretary Wes Streeting and Deputy Prime Minister David Lammy, have privately suggested that a customs union could offer economic benefits, though they stop short of advocating an official policy change. A government spokesperson has stressed that while discussions on deeper EU ties continue, core Brexit positions will be preserved. The Sun
Opposition Party Perspectives
Liberal Democrat leader Ed Davey has openly urged Starmer to open talks on rejoining the customs union, arguing that closer EU integration is essential for competitiveness and growth. By contrast, Conservative and Brexit‑aligned parties continue to criticise any pivot towards the EU as a betrayal of the 2016 referendum and a threat to UK sovereignty. Reddit
Meanwhile, some critics from the hard‑right Reform UK base argue that any focus on rejoining EU structures misunderstands Brexit’s purpose, opposing closer EU alignment altogether. Online commentators have also highlighted fears that shifting ground on Brexit could damage support from traditional voters. Reddit
Public Opinion and Political Pressure
Polling suggests that a substantial portion of the public supports closer economic ties with the EU as a way to improve trade and reduce costs — a factor that is amplifying political pressure on the Starmer government. However, senior figures in Labour argue that economic resets with Brussels can be pursued within the existing Brexit framework without crossing red lines. tuc.org.uk
What’s Next?
With the UK economy showing mixed performance and the cost‑of‑living crisis persisting, debate over the direction of UK‑EU relations is likely to intensify. The Labour leadership’s strategy centres on achieving incremental improvements in trade and cooperation, while avoiding what it sees as the political and diplomatic risks of undoing core elements of Brexit.