TUC leader urges UK-EU customs union to boost living standards

The head of Britain’s Trades Union Congress (TUC) has thrown support behind renewed calls for the UK and the EU to establish a customs union, arguing the move would help raise living standards across the country. Paul Nowak told policymakers and business leaders that closer alignment on customs rules would reduce trade friction, stabilise supply chains and lower costs for households and firms.

Nowak framed the proposal as a pragmatic economic response to the disruptions that followed the UK’s exit from the EU. He said a customs union—by eliminating tariffs and simplifying border procedures for goods—could protect manufacturing jobs, ease pressure on retailers and reduce the administrative burden on companies that trade across the Channel. Those outcomes, he argued, would contribute to stronger pay and cheaper consumer prices.

The call echoes long-standing appeals from business groups and some parliamentarians who say friction at the border has raised costs and impeded trade. Advocates point to the potential for smoother logistics, fewer delays for exporters and more predictable supply chains, particularly for industries that rely on just-in-time delivery.

But the proposal faces significant political and technical obstacles. A customs union would require a negotiated agreement with the EU and sustained political will in Westminster. It would also prompt debates about sovereignty and the UK’s ability to strike independent trade deals—issues that remain contentious among lawmakers and parts of the public. The TUC acknowledges those challenges but casts them against the immediate economic benefits for workers and consumers.

Economists note that a customs union typically covers goods rather than services, an important consideration for the UK economy where services—especially financial services—are significant. Any arrangement would therefore need careful design to address sector-specific concerns.

Nowak’s intervention, reported by the Financial Times, is likely to sharpen discussions about the practical trade-offs involved in post-Brexit economic policy. By prioritising trade facilitation and household living standards, the TUC is positioning labour interests at the centre of the debate over future UK-EU arrangements. Whether politicians respond by reopening negotiations or pursuing alternative mitigations for trade frictions remains an open question.