The leader of the Liberal Democrats, Sir Ed Davey, has called for the UK to agree a new customs union deal with the EU, in a major speech today (16 January).
In the speech, the content of which was reported in advance by Liberal Democrat voice, he said the UK “must be far more positive, far more ambitious, and act with far more urgency” on its relationship with the EU, and argued that the UK government should open negotiations on such an agreement this year.
‘Turbocharge our economy’
He added that the current Labour government should “not just [be] tinkering around the edges of the botched deal the Conservatives signed four years ago”. It should agree a full customs union deal that would enter force within the next five years, he said.
Arguing that a renewed customs union agreement would be the biggest step the government could take for the UK economy, he argued:
“Forming a customs union with the EU is not only the single biggest thing we can do to turbocharge our economy in the medium and long term. But an agreement to work towards one would unlock big economic benefits for the UK now and start tearing down those damaging Conservative trade barriers this year.
“It would be a win-win for our country, and I still can’t understand why the government continues to rule it out.”
Davey said such a deal would be particularly important after the return of former US president Donald Trump to the White House next week.
Criticising the approach of other parties to Trump and his protectionist approach to trade, he said the UK cannot “approach Trump from a position of weakness” or “go to him cap in hand and beg for whatever trade deal he’ll give us”.
To approach the new US administration from a “position of strength”, he urged, the UK must show that it has “alternatives” by “urgently strengthening our relationships with the UK’s other partners”.
Badenoch on Brexit
Kemi Badenoch is also delivering her first major speech of 2025 today, details of which were shared in advance with the BBC.
“I will acknowledge the Conservative Party made mistakes,” she is expected to say. On Brexit, she will add, the party committed to leaving the EU “before we had a plan for growth outside” the bloc.
She also said that pledges for lower immigration and progress towards the goal of net zero carbon emissions by 2050 were not achieved “because we told people what they wanted to hear first and then tried to work it out later”.
"That is going to stop under my leadership. If we are going to turn our country around, we're going to have to say some things that aren't easy to hear."
Labour pick EU negotiator
The government, meanwhile, have made the next step in their ‘EU reset’ by selecting Michael Ellam as their lead negotiator with the bloc.
Ellam, who has previously advised Labour prime minister Gordon Brown as his director of communications, will leave a role at HSBC to become Cabinet Office's second permanent secretary, overseeing EU and international economic affairs, the government has said.
He was also a civil servant for 20 years. Minister for EU relations, Nick Thomas-Symonds, said:
“I am delighted that Michael Ellam is bringing his talents to the heart of government, helping us tackle barriers to trade, keep people safe and take on shared global challenges, like illegal migration.
“Michael’s experience at the highest levels of international finance will be a huge asset as we work to deliver economic growth on behalf of the British people, including through resetting our relationship with the EU.”
Picture credit: Edward Davey ©House of Commons.
