Paul Nowak, General Secretary of the Trades Union Congress (TUC), has called on UK Prime Minister Keir Starmer to explore “the closest possible economic and political relationship with the European Union,” including the possibility of rejoining a customs union. Nowak stressed that improving trade relations with Europe is essential for economic growth and for restoring public confidence in mainstream politics.
TUC Calls for Stronger Ties with the EU
In an interview with the BBC, Nowak highlighted that a bespoke customs union could reduce barriers to trade with the EU, the UK’s largest market, and help alleviate cost of living pressures.
“Absolutely the government should rule nothing out. They should look at every option for our relationship with the European Union up to and including a customs union,” he said.
Nowak warned that without action on living standards, faith in mainstream politics could “drain away,” particularly among workers facing economic insecurity.
Labour Party Position on the EU
Sir Keir Starmer has indicated a desire to “reset” relations with Brussels but has ruled out rejoining the EU’s single market and customs union. Some senior Labour figures, including Health Secretary Wes Streeting and Deputy Prime Minister David Lammy, have suggested that closer ties with Europe could benefit the economy.
Earlier this month, 13 Labour MPs supported a Liberal Democrat bill calling on the government to begin negotiations on a bespoke customs union with the EU. However, Conservative and Reform UK politicians oppose rejoining any customs union, arguing that it would undermine the benefits of Brexit.
Economic and Industrial Impact
A customs union with the EU would eliminate tariffs between the UK and EU member states and reduce bureaucracy for UK businesses. Critics, however, warn that it could limit the UK’s ability to negotiate independent trade deals globally, as the EU would expect common external tariffs and standards.
Nowak highlighted sectors such as aerospace, automotive, and steel, emphasizing the importance of favorable trade arrangements with Europe:
“I go round workplaces week in, week out – aerospace, automotive, steel – and having a good deal with Europe is essential.”
Living Standards and Workers’ Rights
As TUC leader, Nowak represents 47 unions with over five million members, and he called for the government to address the cost of living crisis in 2026. He cited research from the Joseph Rowntree Foundation, showing that voters who feel financially insecure are drifting away from Labour.
Nowak praised measures such as lifting the two-child benefit cap, but said more is needed to protect workers and boost living standards. He also emphasized the full implementation of the Employment Rights Act, which guarantees:
- Sick pay and paternity leave from day one
- Protections for pregnant women and new mothers
- Stronger safeguards for union organisation and workplace representation
Critics argue that some provisions, such as unfair dismissal protections, have been delayed, but Nowak insisted that enforcing these measures would strengthen employment security and improve living standards.
Political Implications
Nowak stressed that the government’s focus should remain on economic and social issues, rather than competing on immigration with parties like Reform UK:
“For too many people at the economic sharp end in low paid employment, they feel that change hasn’t come, or come quickly enough.”
He warned that if the government fails to improve living standards, Labour risks losing support not only to Reform UK but also to the growing influence of left-leaning unions like Unison, which recently elected Andrea Egan as its leader.
Conclusion
The TUC boss’s message to Starmer is clear: no options should be ruled out regarding trade with the EU, and urgent action on workers’ rights, living standards, and economic growth is crucial. Paul Nowak argues that delivering tangible benefits to workers will restore confidence in mainstream politics and strengthen the Labour Party’s standing ahead of future elections.
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