Britain will have open borders with Europe if Labour rebels defeat Starmer

Sir Keir Starmer’s allies have warned Brexit rebels that rejoining the EU customs union would force Britain to open its borders.

Senior Labour sources told The Telegraph that “performative” Cabinet ministers wanting to enter the trade bloc had “clearly not thought it through” because Britain would be forced to restore freedom of movement.

Cabinet ministers including David Lammy, Peter Kyle and Wes Streeting have suggested that Sir Keir should consider rejoining the customs union, which they say would boost economic growth.

A Whitehall source told The Telegraph: “The EU would probably want freedom of movement in return for a customs union, and both are red lines for the government. People pushing for this have clearly not thought it through.”

While Sir Keir wants to get closer to the EU, sources close to him are understood to be frustrated by ministers undermining him by publicly discussing a reversal of Brexit.

Sir Keir has begun a “reset” with Brussels but has repeatedly ruled out any return to the customs union, single market or freedom of movement. However, were he replaced as Prime Minister, another Labour figure may seek to go further and undo Brexit.

New EU reset talks

Next week is crucial for the Prime Minister’s EU reset. Ministers are set to hold talks with the EU officials on food and drink standards, a youth mobility scheme and defence cooperation. Rachel Reeves, the Chancellor, will also talk up the benefits of aligning with the EU in her annual Mais lecture.

But Downing Street has insisted that remaining outside the customs union is a “red line” for Britain’s negotiators, who believe that Brussels would demand free access to the UK labour market in return.

The intervention will be seen as a warning to Mr Streeting, the Health Secretary, who has been touted as a potential leadership challenger to Sir Keir should he succumb to mounting pressure over his handling of the Lord Mandelson scandal.

Last year Mr Streeting called for a “deeper trading relationship” with the EU. However, he said any new arrangement “can’t lead to a return to freedom of movement”.

Meanwhile Mr Lammy has pointed to the benefits of customs union arrangements struck by other countries.

Mr Kyle, the Business Secretary, has also said it would be “crazy not to engage with the prospect of a customs union”. Meanwhile, the Liberal Democrats and Green Party have issued explicit demands to unify Britain’s trade policy with Brussels.

However, Labour sources said such a deal would amount to reversing Brexit and would not be popular with the public.

A senior party source said: “Sometimes in politics you can pursue attention-seeking headlines and get away with it. Sometimes you get totally exposed.

“This kind of performative politics is not going to serve the country, nor is it the political genius its proponents think it is.”

Return to Brussels red tape

Nick Thomas-Symonds, the minister for European Union relations, will meet Brussels officials next week to finalise a deal that will force the UK to align with European food and drink standards.

Ministers have talked up the benefit to British exporters selling in Europe, but critics say it will force British companies to return to following EU rules without a say in how they are made.

A European source said that Britain would be unlikely to receive the same deal it had as an EU member if it returned to the customs union, and might be forced to accept a 20 per cent spike in domestic food prices.

The UK was one of the only countries not to charge VAT on most foods sold in supermarkets while still a member state.

Most of the bloc’s 27 current member states, excluding Ireland, charge VAT on food shopping, ranging from 3 to 25 per cent.

Other officials have warned that Britain would have to cancel its post-Brexit trade deals should it want to join the customs union. One source suggested the UK should continue to pursue sector-by-sector arrangements rather than a full trading alignment.

An EU diplomat proposed a “customs union for pharma”, which would reduce paperwork to speed up shipments between the EU and Britain.

It is understood that EU officials have grown frustrated with the Cabinet split over rejoining the customs union.

One diplomat said: “Call me when the UK has figured out what it wants. In the meantime we’re trying to figure out some more pressing stuff.

“There were times where we had to respond to every twist and turn in Westminster politics. No longer.”

[Source: Daily Telegraph]