Ask Onix
TUC leader calls for deeper UK-EU economic partnership
The head of Britain's largest trade union federation has pressed the government to pursue the "closest possible" relationship with the European Union, warning that stagnant living standards risk eroding public trust in mainstream politics.
Customs union proposal gains union backing
Paul Nowak, general secretary of the Trades Union Congress (TUC), told the BBC that a customs union with the EU should not be ruled out, arguing it would cut trade barriers with the UK's biggest market. He described 2026 as a critical year for tackling the cost-of-living crisis, linking high supermarket prices to what he called "that bad Brexit deal."
Nowak, who represents 47 unions and over five million workers, said: "Absolutely the government should rule nothing out. They should look at every option for our relationship with the European Union up to and including a customs union."
Prime Minister Sir Keir Starmer has ruled out rejoining the EU single market or customs union, citing concerns that recent trade deals with the US and India could be jeopardised. Labour's manifesto also excludes signing up to the existing EU customs union.
Ministers signal flexibility on Brexit red lines
Despite Labour's official stance, senior cabinet members-including Health Secretary Wes Streeting and Deputy Prime Minister David Lammy-have publicly criticised the economic impact of Brexit and advocated for closer EU ties. Earlier this month, 13 Labour MPs backed a Liberal Democrat bill urging negotiations on a bespoke customs union.
The Conservatives and Reform UK oppose rejoining a customs union, arguing it would undermine Brexit's perceived benefits. Critics warn that such a move would limit the UK's ability to strike independent trade deals, as the EU imposes common tariffs on external goods and expects alignment with its standards.
Living standards and political fallout
Nowak warned that failure to improve living standards could drive voters toward populist alternatives. "For too many people at the economic sharp end in low-paid employment, they feel that change hasn't come, or come quickly enough," he said, adding that the government must avoid "getting on the same pitch" as Reform UK on immigration.
Polling commissioned by the TUC found one in five people skipping meals and one in three expecting their financial situation to worsen. Research by the Joseph Rowntree Foundation also indicated that financially insecure voters were abandoning Labour at higher rates than more secure ones.
Nowak praised recent government measures, such as lifting the two-child benefit cap, but urged further action. He emphasised the need to fully implement the Employment Rights Act, which grants workers sick pay and paternity leave from day one, along with protections for pregnant women and new mothers. However, Labour recently backtracked on plans to allow unfair dismissal claims from the first day of employment, instead imposing a six-month waiting period.
Union discontent and leadership challenges
Discontent within the labour movement extends beyond policy. Andrea Egan, a left-wing candidate, was elected this month as leader of Unison, the UK's largest union, after criticising the perceived closeness between incumbent Christina McAnea and the Labour leadership.
Nowak acknowledged the political challenges facing Starmer, noting that "the prime minister is struggling personally too." He argued that delivering on living standards would shift public opinion: "A Labour government is always at its best when it is ambitious and on the front foot."
Government response
A government spokesperson highlighted Budget measures to ease financial pressures, including energy bill cuts, frozen rail fares, and a higher living wage. They reaffirmed the commitment to implementing the Employment Rights Act "in full and on time," calling it a transformation of workers' rights for the 21st century.
"With the passing of the Employment Rights Act, we will transform workers' rights for the 21st Century with a clear commitment to implement this in full and on time."
Government spokesperson
