Liberal Democrats Push For Vote On Creating New Customs Union With EU, In Bid To Pressure Labour MPs Into Supporting Pro-EU Stance
The Liberal Democrats are set to force a vote in parliament on creating a new customs union with the European Union (EU), with the party's leader Ed Davey urging his fellow MPs to back the move. The bill, tabled by Al Pinkerton, is largely symbolic but is intended to demonstrate support among pro-EU MPs for a customs union and put pressure on Labour's Keir Starmer government to reconsider its stance.
According to recent analysis from the National Bureau of Economic Research, Brexit has reduced UK GDP by 6-8%, while a study by the House of Commons Library commissioned by the Liberal Democrats suggests that a more ambitious trade deal with the EU could generate at least £25bn a year for the public finances.
The Liberal Democrats are calling for the UK to negotiate a new customs union with the EU, covering most goods but not agriculture, and in which the UK would be consulted during negotiations on new EU trade deals with third countries. The party believes that this is the best way to boost growth and raise revenue, rather than relying on tax rises.
Davey has described a customs union as "the single biggest lever" the government could pull to turbocharge the UK economy, but Labour has repeatedly said it does not want to join a customs union with the EU. The party is instead negotiating closer ties with the bloc, but is currently deadlocked over an entry fee of up to €6bn (£5.3bn) that Brussels demands in return for participation in the European single market.
The Liberal Democrats are using the vote as an opportunity to pressure Labour into taking a more pro-EU stance, and to demonstrate their own commitment to a closer trading relationship with Europe. However, it remains to be seen whether the party's efforts will bear fruit, given that the bill is unlikely to pass without government support.
The Liberal Democrats are set to force a vote in parliament on creating a new customs union with the European Union (EU), with the party's leader Ed Davey urging his fellow MPs to back the move. The bill, tabled by Al Pinkerton, is largely symbolic but is intended to demonstrate support among pro-EU MPs for a customs union and put pressure on Labour's Keir Starmer government to reconsider its stance.
According to recent analysis from the National Bureau of Economic Research, Brexit has reduced UK GDP by 6-8%, while a study by the House of Commons Library commissioned by the Liberal Democrats suggests that a more ambitious trade deal with the EU could generate at least £25bn a year for the public finances.
The Liberal Democrats are calling for the UK to negotiate a new customs union with the EU, covering most goods but not agriculture, and in which the UK would be consulted during negotiations on new EU trade deals with third countries. The party believes that this is the best way to boost growth and raise revenue, rather than relying on tax rises.
Davey has described a customs union as "the single biggest lever" the government could pull to turbocharge the UK economy, but Labour has repeatedly said it does not want to join a customs union with the EU. The party is instead negotiating closer ties with the bloc, but is currently deadlocked over an entry fee of up to €6bn (£5.3bn) that Brussels demands in return for participation in the European single market.
The Liberal Democrats are using the vote as an opportunity to pressure Labour into taking a more pro-EU stance, and to demonstrate their own commitment to a closer trading relationship with Europe. However, it remains to be seen whether the party's efforts will bear fruit, given that the bill is unlikely to pass without government support.