Labour’s Lucy Powell Insists Party Stick to Manifesto on EU Customs Union Amid Streeting Rebuke
Labour Deputy Leader Lucy Powell has reaffirmed the party’s commitment to its election manifesto by ruling out rejoining the EU customs union, in a pointed response to internal pressures including from Health Secretary Wes Streeting. Her comments came amid a tied Commons vote where 13 Labour MPs supported a Liberal Democrat bill for customs union talks, highlighting brewing tensions over Brexit reset ambitions.
Powell’s stance aligns with Prime Minister Keir Starmer’s red lines, emphasizing focus on May’s EU deliverables like youth schemes and food trade deals, rather than deeper integration that could breach manifesto pledges. The intervention underscores Labour’s delicate balancing act on Europe amid growth woes and opposition challenges.
Powell Draws Firm Line on Customs Union Return
In live political updates, Powell declared Labour “must stick to manifesto” on the EU customs union, implicitly countering Streeting’s advocacy for bolder post-Brexit moves. This echoes Starmer’s repeated clarification that such a rejoin remains “not currently our policy,” prioritizing manifesto fidelity post recent tax controversies.
The deputy’s intervention followed a December 9 Commons vote on Lib Dem Al Pinkerton’s bill, which tied 100-100 and fell to Deputy Speaker Caroline Nokes’ casting vote against. Notably, 13 Labour MPs defied whips to back talks on a tailored customs union covering most goods but excluding agriculture, granting UK input on EU third-country deals.
Powell’s position reflects caution against rushing integration, with party sources warning it could undermine the May Starmer-von der Leyen summit’s gains, including stalled €350m fees for €150bn EU defense access and potential UK electricity market entry.
Streeting Sparks Internal Debate on Brexit Boldness
Health Secretary Wes Streeting has emerged as a vocal proponent for advancing beyond the May reset, fueling speculation of cabinet divisions. Amid growth pressures, some ministers push immediate customs union discussions to counter Reform UK’s Nigel Farage, viewing it as a lever for economic revival.
Chancellor Rachel Reeves has linked Brexit to productivity slumps, signaling appetite for “more” post-reset within red lines. Yet aides caution EU politics—France and Germany’s priorities—could block progress, urging focus on deliverables like the Youth Experience Scheme, SPS veterinary deals, CBAM alignment, and Erasmus+ reentry.
Anonymous Labour voices split: Proponents argue, “We want growth… Challenge Farage,” while skeptics fear a “reverse to 2016” backlash. Public readiness hinges on forward framing, not nostalgia.
Lib Dems Force Vote to Expose Labour Fault Lines
Lib Dem Leader Ed Davey seized the moment: “Chancellor acknowledges Brexit harm… government unwilling to fix. Customs union is biggest lever to invigorate economy… We’ll work with MPs for closer ties, cut red tape, fund services.” Pinkerton envisions a Turkey-style union by 2030, enhancing the TCA without supplanting it.
The bill’s symbolic timing—post-budget—aimed to spotlight pro-EU sentiment. Labour’s 13 rebels faced whipping, but the tie exposed manifesto strains, with National Bureau of Economic Research estimating Brexit’s 6-8% GDP hit and Commons Library projecting £25bn annual fiscal gains from closer ties.
Labour Movement for Europe decries the TCA as aspiration-killing, advocating single market/customs access for G7-level growth.
Economic Stakes Fuel Customs Union Push
Brexit’s toll looms large: Starmer admits the “poorly executed deal harmed economy,” with reset framed as ongoing, not one-off. A customs union promises tariff alignment benefits but sacrifices independent trade policy, complicating US/India pacts.
Polls show Labour voters favoring customs rejoin over tax hikes, amplifying internal calls. Guardian analysis dubs it “the only idea around” for growth, confronting the “issue that dare not speak its name.”
Yet LabourList warns haste undermines reset: EU eyes May wins first, avoiding overreach amid domestic rows.
Party Manifesto as Anchor Amid Growth Pressures
Labour’s platform explicitly bars customs union or single market rejoin, a red line tested by rebels and Streeting’s rhetoric. Powell’s rebuke reinforces discipline, averting another breach uproar akin to fiscal pledges.
Cabinet dynamics pit growth hawks against manifesto guardians, with Reeves eyeing Europe for productivity lifts without electoral peril. Starmer’s “Britain reconnected” pledges incremental wins, dodging full reversal.
Opposition and Ally Perspectives
Lib Dems position as EU bridge-builders, leveraging votes to pressure Labour. Reform looms as foil, with Farage-style nationalism risking pro-EU backfire if mishandled.
Labour for Europe urges bold access, but party realists prioritize stability. Commentators see customs talk as inevitable amid stagnation, yet politically fraught pre-election.
Path Forward: Reset or Realignment?
Powell’s manifesto fidelity signals near-term caution, focusing reset fruits over grand bargains. Success hinges on delivering SPS, youth mobility, and trade easements without red-line crosses.
As Brexit bites persist—6-8% GDP drag—debate intensifies. Labour navigates growth imperatives against pledge sanctity, with Streeting’s push testing unity. A Turkey-model union tempts, but EU readiness and domestic optics decide.
Ultimately, Powell’s line holds: Stick to the script, build incrementally. Yet with £25bn upsides beckoning, pressure mounts for evolution beyond May’s table scraps.
