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Story perspectives

Labour Divided: Call for EU Customs Union Sparks Controversy

1/22/2026

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Story summary
  • UK Business and Trade Secretary Peter Kyle suggested Britain should consider a customs union with the EU, contradicting Labour's manifesto.
  • He spoke at the World Economic Forum to discuss post-Brexit economic opportunities.
  • Chancellor Rachel Reeves and Prime Minister Keir Starmer opposed the idea, warning it could undermine trade deals.
  • Labour ministers David Lammy and Wes Streeting supported a customs union, showing divisions within the party on trade.