Labour: Jeremy Corbyn to pile pressure on Theresa May with customs union policy shift

Jeremy Corbyn will today create a clear Brexit dividing line between Labour and the Tories in a keynote speech which will see him finally commit to keep the UK in a European customs union.

The Labour leader will argue the move would enable his party to secure “full tariff-free access” to the single market but without committing to all of its rules, allowing him to negotiate exemptions on freedom of movement and workers’ rights.

The move ends months of speculation about Mr Corbyn’s stance on the issue, which goes to the heart of the debate about Britain’s future.

It also simultaneously heaps pressure on Theresa May as pro-EU Tory rebels are poised to join Labour and force her to keep the UK in the customs union.

The Prime Minister is scrambling to agree Britain’s approach to the future relationship with the EU by Friday, as Brexiteers also threaten her leadership from the right, if she fails to seek a deal that allows the UK to agree trade deals – something staying in the customs union would preclude.

In a much-anticipated speech in Coventry, Mr Corbyn will say: “Britain will need a bespoke relationship of its own. Labour would negotiate a new and strong relationship with the single market that includes full tariff-free access and a floor under existing rights, standards and protections.

“That new relationship would need to ensure we can deliver our ambitious economic programme, take the essential steps to upgrade and transform our economy, and build an economy for the 21st century that works for the many, not the few.”

Mr Corbyn will add: “We cannot be held back, inside or outside the EU, from taking the steps we need to support cutting-edge industries and local business, stop the tide of privatisation and outsourcing or prevent employers being able to import cheap agency labour from abroad to undercut existing pay and conditions.”

It comes after Shadow Brexit Secretary Sir Keir Starmer suggested that Labour would join forces with Tory rebels to force Ms May to put membership of the customs union back on the table.

The Labour leader will also promise to use funds returned from Brussels after Brexit “to invest in our public services and jobs of the future, not tax cuts for the richest”.

His speech is likely to disappoint those in the party who favour a softer Brexit, as a group of more than 80 MPs, peers and union leaders told Mr Corbyn that Labour would “never be forgiven” if it backed leaving the single market.

The alliance, including prominent Labour figures such as Chuka Umunna and Lord Kinnock, warned that the move would risk a “multi-billion pound hit to the public finances” and make the party’s manifesto plans for schools, hospitals and social care unaffordable.

Responding to the speech, Mr Umunna welcomed moves to put “clear red water” between Labour and the Tories but warned that the only way to retain the benefits of the single market and the customs union – and to avoid a hard Irish border – was to stay in both agreements.

He added: “It is the best anti-austerity policy too because it avoids a huge negative impact on revenues to the Exchequer if we Brexit.”

Liberal Democrat Brexit spokesperson Tom Brake said Labour’s plans to protect jobs were a “meaningless and totally undeliverable soundbite” if Britain leaves the single market and urged Labour to change course.

He said: “If Jeremy Corbyn carries on down this path of ‘having your cake and eating it’, it would be another betrayal to those who believe that strong public services have to be underpinned by a strong economy, and Britain staying in the single market and customs union is crucial to that.”

Ms May faces a challenging week, ahead of a major Brexit speech on Friday where she is expected to outline long-awaited plans for Britain’s future relationship with the EU.

She will also host a special Cabinet meeting on Thursday to ensure her top team are behind the plans, following months of in-fighting between Eurosceptics led by Boris Johnson and Michael Gove, and Philip Hammond’s pro-EU allies.

It comes amid reports several senior ministers have warned her that Tory rebels could bring down the Government if they joined forces with Labour to block her plans to take Britain out of the customs union.

However, Ms May struck an upbeat note, saying: “Delivering the best Brexit is about our national future, part of the way we improve the lives of people all over the country.

“If we get them right, Brexit will be the beginning of a bright new chapter in our national story, and our best days really do lie ahead of us.”