Business backs Corbyn over EU customs union
Jeremy Corbyn won the backing of business leaders yesterday after saying he would seek to form a “new and comprehensive” UK-EU customs union to ensure tariff-free trade after Brexit.
CBI director-general Carolyn Fairbairn said the announcement “will put jobs and living standards first by remaining in a close economic relationship with the EU”, while Institute of Directors chief Stephen Martin said Labour had “widened the debate”, adding that “many businesses, particularly manufacturers, will be pleased to hear the opposition’s proposal”.
Mr Corbyn’s announcement suggested his party could line up with Tory rebels to force a change in the government’s stance on the customs union.
But there were questions over how the Labour leader would achieve his goal of ensuring the UK “has a say in future trade deals” signed by the EU, despite no longer being a member.
Mr Corbyn said Labour would not countenance a deal that leaves Britain as a “passive recipient of rules decided elsewhere by others”.
He also stressed that free movement of EU citizens would end “as a statement of fact” when the UK leaves the EU, committing to the “reasonable management of migration”.
He faces further pressure to commit to full membership of the single market after Brexit, with the Labour MP Chris Leslie saying the announcement “is nowhere near enough”.
“Jeremy Corbyn’s speech is not the end of Labour’s debate on Europe,” Mr Leslie said. “Staying in the single market is absolutely essential if we are to protect manufacturing jobs and investment and to avoid a hard border in Ireland.”
The SNP’S Stephen Gethins said Mr Corbyn “needs to go further if he is serious about protecting the UK’S economy and jobs as the UK leaves the EU”. He added: “The softening in stance is a step in the right direction, however, time is running out.”