Cabinet minister says Britain could be ‘loopy’ not to have a look at a customs union with the EU… the day after Rachel Reeves dominated the concept out

Labour’s push for closer EU ties descended further into chaos today as a minister insisted the UK would be ‘crazy’ not to look at a customs union.

Trade Secretary Peter Kyle said Britain had to consider where the ‘best opportunities’ were for the economy in the longer term.

But the remark came just a day after Chancellor Rachel Reeves flatly dismissed the idea, pointing out the Labour manifesto ruled it out and other trade deals would be wrecked.

In an interview at the World Economic Forum in Davos, Mr Kyle was asked by CNBC about hints from colleagues including Wes Streeting and David Lammy at support for a customs union. 

He denied the wrangling showed that Keir Starmer did not have a grip on his own top team. 

Trade Secretary Peter Kyle said Britain had to consider where the ‘best opportunities’ were for the economy in the longer term

The remark came just a day after Chancellor Rachel Reeves (pictured) flatly dismissed the idea, pointing out the Labour manifesto ruled it out and other trade deals would be wrecked

‘When it comes to the to the customs union, you know, we need to be having these conversations as a country about where is the best anchor, what is the best opportunities for Britain’s economy post Brexit,’ Mr Kyle said. 

‘Now, of course, it would be crazy not to engage with the prospect of a customs union. 

‘My point is very clear that the challenge that we have as an economy is growth in the short term. 

‘We are beating expectations. We got growth predicted this year for 1.5 per cent. It’s not enough. 

Mr Kyle said the government was pursuing regulatory reform and putting money into ways of ramping up activity. 

‘We’re investing but most of these things will deliver growth a little bit into the longer term,’ he added. ‘Now a customs union is something we need to engage with but let’s be clear, it took Turkey 20 years to join the customs union. 

‘It took four years for us to leave the customs union. I am focusing on what it takes to get growth into the economy now. 

‘And of course, this is a gentle debate, whereas the debate of the Brexit years ripped our country apart, we are now back together as a country, and we’ve got stable government with a 10-year industrial strategy.’

The comments contrasted with Ms Reeves’ suggestion during her own tour of Davos yesterday.

Asked if re-entering a customs union with the EU was on the cards, she told Bloomberg TV: ‘No, it was very clear in our manifesto that we wouldn’t be re-joining the customs union, the single market, or bringing back free movement of labour.

Mr Kyle denied the wrangling showed that Keir Starmer did not have a grip on his own top team

‘We can’t go back in time and since we’ve left the EU we have done trade deals with India, with the US, with South Korea, and obviously you would lose the benefit of some of those trade deals if you were to re-enter a customs union.

‘I don’t think you have to return to the customs union to seize greater benefits of free and fair trade.’

Ms Reeves added: ‘These are times when others are putting up barriers to trade. What Britain is arguing for, and what I believe in strongly, is that those of us who believe in free and fair trade practice what we preach and reduce barriers between ourselves.’