TUC
The head of the Trades Union Congress has called for the United Kingdom to pursue the closest possible economic and political relationship with the European Union, arguing that deeper cooperation is vital for economic recovery and for rebuilding public confidence in mainstream politics. Paul Nowak, the UK’s most senior trade union leader, told that a stronger partnership with the EU would be “essential” to drive economic growth and warned that unless living standards improve, public trust in traditional politics could continue to erode.
Nowak urged the prime minister not to dismiss the idea of a customs union with the EU, saying it would reduce trade barriers with the UK’s largest trading partner. Such a move, he argued, should remain firmly on the table.
Prime Minister Sir Keir Starmer has said he wants to “reset” relations with Brussels but has ruled out rejoining the EU’s single market or customs union. He has argued that re-entering those arrangements could jeopardise recently signed trade agreements with countries such as the United States and India.
Labour’s election manifesto also explicitly ruled out joining the existing EU customs union. However, in recent months, several senior cabinet ministers — including Health Secretary Wes Streeting and Deputy Prime Minister David Lammy — have edged closer to those boundaries, openly criticising the economic consequences of Brexit and highlighting the benefits of closer ties with Europe.
Earlier this month, 13 Labour MPs backed a Liberal Democrat proposal calling on the government to begin negotiations on a tailored customs union agreement with the EU.
The Conservatives and Reform UK strongly oppose any return to a customs union, arguing that it would undermine what they see as the advantages of leaving the EU.
A customs union would remove tariffs and taxes on goods traded between the UK and the EU, easing bureaucracy and reducing friction at borders. However, critics say it would significantly restrict the UK’s ability to negotiate its own trade deals, as the EU applies a common external tariff and requires members to follow shared standards.
In an interview with the BBC, Nowak said that 2026 must be the year the government confronts the cost-of-living crisis head-on.
“One of the reasons we are seeing prices so high in our supermarkets is because of that bad Brexit deal,” he said. “The government should rule nothing out. It should examine every option for our future relationship with the European Union, including a customs union.”
He said his visits to workplaces across the country — including aerospace, automotive and steel plants — had reinforced the importance of securing strong trade links with Europe.
Nowak, who became general secretary of the TUC in 2023, also warned that the government risks paying a political price if it fails to act across a broad range of policies to improve people’s financial security.
He pointed to research by the Joseph Rowntree Foundation suggesting that voters who feel financially insecure are abandoning Labour at a faster rate than those who feel more stable.
Polling commissioned by the TUC found that one in five people were skipping meals, while one in three expected their financial situation to worsen.
While praising government measures already announced — including the removal of the two-child benefit cap — Nowak said further action was needed to help struggling families.
As leader of the TUC, Nowak represents 47 trade unions with a combined membership of more than five million workers, giving him significant influence within government circles.
He has been pressing ministers to ensure there is no backtracking on the implementation of the Employment Rights Act, which has recently been passed into law.
The legislation provides workers with access to sick pay and paternity leave from their first day of employment, alongside enhanced protections for pregnant women and new mothers.
However, many provisions will be phased in gradually. In November, Labour retreated from its pledge to allow workers to claim unfair dismissal from day one, instead introducing a six-month qualifying period.
The Conservatives argue that the act imposes excessive burdens on employers and could lead to job losses.
Nowak also called for there to be no limit on the financial penalties faced by large companies that attempt to obstruct union organising, insisting that stronger workplace rights would improve living standards by “making work pay” and increasing job security.
A government spokesperson acknowledged that there was “more to do to help families with the cost of living,” pointing to Budget measures including energy bill reductions, rail fare freezes, capped prescription charges and increases to the national living wage.
“With the passing of the Employment Rights Act, we will transform workers’ rights for the 21st century, with a clear commitment to implement it fully and on time,” the spokesperson said.
Labour is currently trailing Reform UK in opinion polls, but Nowak rejected calls for the party to mirror Reform’s stance on immigration.
“I don’t think you can out-Reform Reform,” he said.
He added that many low-paid workers feel promised change has either not arrived or has come too slowly, creating space for Reform’s appeal.
“My job isn’t to tell union members they voted the wrong way,” Nowak said. “The responsibility lies with the government to show that mainstream politics can deliver the change people are looking for.”
Discontent among voters is not limited to support for Reform. This month, left-wing candidate Andrea Egan was elected leader of Unison, the country’s largest union, and has called for a shift in government policy and a change in Labour leadership.
Supporters of outgoing leader Christina McAnea believe her perceived closeness to Labour’s leadership may have undermined her re-election campaign.
Nowak said opinion polls showed the prime minister himself was also struggling.
“If the government can deliver real improvements in living standards, then the polls will take care of themselves,” he said. “Labour governments are at their strongest when they are bold, ambitious and on the front foot.”
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