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The Trades Union Congress (TUC) leader, Paul Nowak, has emphasized the necessity of forging the “closest possible economic and political relationship with the European Union” to support the UK’s economic growth. In an interview with the BBC, Nowak stressed that improving living standards is critical, warning that without it, public confidence in mainstream politics risks fading. He recommended that the Prime Minister keep an open mind on the possibility of re-entering a customs union with the EU, arguing that such a move would reduce trade barriers with the UK’s largest trading partner.
While Opposition Leader Sir Keir Starmer has expressed a desire to “reset” UK-EU relations, he has ruled out rejoining the EU’s single market or customs union. The Prime Minister similarly fears that rejoining the customs union could jeopardize recent trade agreements with nations like the US and India. Labour’s manifesto also rejects signing up to the current EU customs union, although some senior Labour figures, including Health Secretary Wes Streeting and Deputy Prime Minister David Lammy, have hinted at reconsidering the strict party stance due to concerns about post-Brexit economic damage. Earlier this month, thirteen Labour MPs supported a Liberal Democrat-led bill urging the government to commence talks on a tailored customs union with Brussels. Meanwhile, the Conservative Party and Reform UK remain opposed to returning to any customs union, arguing it would sacrifice the benefits gained from Brexit.
A customs union would remove tariffs and reduce bureaucracy on goods traded between the UK and the EU. However, critics warn such an arrangement would restrict the UK’s ability to negotiate independent trade deals globally since the EU imposes a common external tariff on goods from non-member countries and sets unified regulatory standards. In his BBC interview, Nowak insisted that tackling the cost-of-living crisis must be a government priority in 2026. He attributed supermarket price hikes partly to a “bad Brexit deal” and advocated that all options for the UK-EU relationship, including a customs union, remain on the table. Highlighting his frequent visits to workplaces in key industries like aerospace, automotive, and steel, Nowak underscored the vital importance of maintaining strong trade ties with Europe.
Since becoming TUC general secretary in 2023, Nowak has called for comprehensive government action to improve living standards, warning that failure to do so could alienate voters. He referenced research from the Joseph Rowntree Foundation, noting that financially insecure voters are abandoning Labour in greater numbers than those who feel secure. The TUC’s own polling revealed worrying figures, with one in five people skipping meals and one in three anticipating worsening financial situations. While applauding government measures such as lifting the two-child benefit cap, Nowak urged further support. Representing 47 trade unions and over five million members, Nowak is pressing the government to fully implement the new Employment Rights Act without delay or dilution. Though some provisions will be phased in gradually, and Labour recently softened plans regarding unfair dismissal rights, Nowak insists greater safeguards are necessary, including removing any limits on fines for employers who obstruct union organisation. He believes these workers’ protections will enhance living standards by “making work pay” and ensuring job security.
A government spokesperson acknowledged ongoing challenges with the cost of living and pointed to recent Budget initiatives aimed at relief, including energy bill cuts, rail fare freezes, and increasing the living wage. They also emphasized a commitment to roll out the Employment Rights Act fully and on schedule. Despite Labour currently trailing Reform UK in the polls, Nowak rejected attempts to compete on immigration issues, asserting, “I don’t think you can out-Reform Reform.” Instead, he stressed that many people in low-paid jobs feel left behind and that the responsibility lies with the government to prove mainstream politics can deliver positive change. Meanwhile, dissatisfaction among voters extends beyond Reform UK, highlighted by the recent election of Andrea Egan as leader of Unison, the country’s largest union, where she calls for new leadership and a fresh direction. Nowak concluded by noting the Prime Minister also faces personal difficulties in the polls and insisted that if the government succeeds in boosting living standards, political fortunes would naturally improve. “A Labour government is always at its best when it is ambitious and on the front foot,” he added
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