David Lammy suggests UK would benefit from rejoining an EU customs union

Deputy Prime Minister David Lammy has suggested it could beryllium beneficial for the UK to see re-entering a customs national with the EU.

He said that though doing truthful was not the government's existent policy, helium could spot however different countries extracurricular the EU had benefited from specified arrangements.

"It's self-evident that leaving the European Union severely damaged our economy, took america retired of an important marketplace and created superior friction, that untruths were being peddled by those that thought exiting the EU would beryllium a bully thing," Mr Lammy told the News Agents podcast.

"And it's wherefore each azygous time that I was overseas secretary, I returned to the taxable of our narration with the European Union."

Asked repeatedly if helium would similar to spot the UK successful a customs union, helium said: "That is not presently our policy. That's not presently wherever we are.

"But you tin spot countries similar Turkey with a customs national seemingly benefiting and seeing maturation successful their economy, and again, that's self-evident."

The Prime Minister's economical advisor Minouche Shafik has besides reportedly advocated down the scenes for joining a customs union.

Mr Lammy's comments were being taken arsenic the clearest denotation yet that the authorities is considering bringing the UK further backmost successful enactment with the European Union.

But erstwhile Sir Keir Starmer was asked to respond and accidental wherefore helium was not advocating for rank fixed that maturation is an ongoing precedence for his government, helium was speedy to dampen down the speculation.

The premier curate said Labour would beryllium sticking to its manifesto, which pledged to deepen ties with the EU without returning to the customs union, azygous marketplace oregon state of movement.

"Well, the presumption that we are taking has been intelligibly acceptable retired successful the manifesto, and past we've been pursuing it," Sir Keir said. "And earlier this year, we had the archetypal UK-EU acme ever, and we had 10 strands for a person relationship.

"So we've wholly reset relations with the EU.

"That's bully for our economy, bully for defence and security, bully for the enactment that we request to bash connected energy.

Earlier a spokesperson for Number 10 said: "We are strengthening relations with the EU whilst sticking to our reddish lines."

"The premier curate reiterated that connected Monday evening astatine the Lady Mayor's Banquet."

Sir Keir acceptable retired his overseas argumentation imaginativeness astatine the banquet, arsenic is tradition.

He said the Brexit ballot was a "fair, antiauthoritarian expression" but the mode it was "sold and delivered was wrong".

"There's nary credible economical imaginativeness for Britain not positioning america arsenic an unfastened trading economy," the Number 10 spokesperson said.

"We person to beryllium grown up astir trade-offs. We person redefined bonds with EU and stuck to our reddish lines."

On Mr Lammy's comments, the spokesperson added: "That is not our existent argumentation oregon wherever we are."