STORY
The Liberal Democrats have urged Labour to change its approach to relations with the European Union, calling for the UK to rejoin the single market through the European Free Trade Association and negotiate a new customs union with the bloc. Ed Davey is expected to argue that the Government’s current position is too limited to deliver major economic benefits.
The party has said Labour should drop its red lines on the single market and customs union, arguing that Brexit continues to affect trade, labour supply and the wider economy. The proposal would involve politically difficult questions, including the issue of free movement, which EU officials have consistently linked to full single market participation.
Labour has rejected rejoining the single market or customs union and has instead pursued more limited agreements with the EU, including cooperation on food and veterinary checks, professional qualifications and security. The debate comes ahead of the tenth anniversary of the Brexit referendum and amid renewed scrutiny of the economic consequences of leaving the EU.