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Rachel Reeves says she would be “happy to look at” Britain joining a pan-European customs area amid a push for a reset in UK-EU relations.
Speaking on Sky News’ Sunday Morning With Trevor Phillips, the Chancellor expressed her willingness to consider membership of the Pan-Euro-Mediterranean Convention.
EU trade chief Maros Sefcovic told the BBC this week that Britain joining a customs arrangement with Europe is “something we could consider”.
Reeves said: “We are absolutely happy to look at those proposals because we know the deal that the previous government secured is not working well enough.
“It’s not working well enough for small businesses trying to export, and it’s not working well enough for larger businesses either. We’re grown up enough to admit that, whereas the previous government said there were no problems at all.”
The Chancellor’s willingness to consider such a move is likely to delight Europhiles in the Labour ranks, many of whom strongly opposed Brexit and have called for closer ties with Brussels.
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But others will be wary that any steps to return Britain to the European fold risks opening the party to attacks from the Tories and Reform UK – especially in Brexit-voting Red Wall areas.
Reeves added: “Where there are constructive ideas, we are happy to look at them as long as they are consistent with the red lines we set out in our manifesto.”
The 2024 Labour manifesto committed to keeping the UK outside of the EU – as well as the single market and customs union – but pledged to “reset the relationship” with Europe.
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