In a significant intervention, the head of the Trades Union Congress (TUC) has called on Prime Minister Keir Starmer to pursue a far closer economic relationship with Europe, explicitly suggesting the exploration of a customs union with the EU to help grow the UK's struggling economy.
A "Botched Brexit Deal" and the Case for Closer EU Ties
Paul Nowak, the TUC's General Secretary, stated in an exclusive interview that the British public recognises the pressing need for a vastly improved trading arrangement with the European bloc. He argued that the urgency of this move has been amplified by the unpredictable nature of the UK's alliance with Donald Trump's United States.
"The government needs to do whatever it can to build the closest possible positive working relationship with Europe economically and politically as well … up to and including the customs union," Nowak said. He reinforced this point by highlighting recent geopolitical shifts, noting that "Trump and the White House have proven the US is not the predictable ally we’ve always depended on."
Nowak, 53, dismissed the idea that a significant portion of voters remains opposed to closer European links. "Whether you voted for Brexit or not, people recognise we’ve got a botched Brexit deal," he asserted. "They can see the impact of that bad Brexit deal on things like prices in supermarkets."
Focus on Living Standards and a Warning to Leadership Challengers
The union leader placed the relentless focus on the cost of living crisis at the heart of his advice to the Labour government. With new TUC polling revealing four in five households feel their finances are stagnant or worsening, Nowak said Starmer must demonstrate tangible improvements to people's standard of living.
While offering cautious backing to Starmer as "the man doing the job at the moment," Nowak acknowledged the inevitable leadership speculation given the Prime Minister's poor personal poll ratings. However, he issued a stark warning to would-be challengers like Angela Rayner, who has close union ties: "the public will not thank you for parliamentary manoeuvrings and political shenanigans when the big job at hand isn’t being delivered."
He also cautioned the government against adopting a "Nigel Farage-lite" approach to migration, expressing deep concern over proposed reforms to indefinite leave to remain, which would increase the qualifying period to ten years. Nowak warned this could deprive vital public services of key workers in sectors like social care, transport, and prisons.
Union Relations and a Landmark Win on Workers' Rights
Nowak's comments come amid a shifting landscape within the trade union movement itself. Two of the largest unions, Unite and Unison, are now led by figures critical of Starmer—Sharon Graham and the recently elected Andrea Egan, who was expelled from the Labour Party in 2022.
Despite this, Nowak declined to comment on internal union dynamics, instead emphasising that unions must feel able to constructively criticise a Labour government. "There’s always going to be points of tension and we can’t agree on everything," he stated.
The TUC ends the year celebrating a major legislative victory: the passing of the Employment Rights Act. Nowak hailed this as a historic moment, marking "the first time in my 35 years of being a trade union activist and official that any government’s ever repealed anti-union legislation." The new measures make it easier for unions to organise, and Nowak predicts union membership will rise as a result.
However, he stressed that crucial elements of Labour's "Make Work Pay" agenda, such as ending zero-hours contracts with "real bite" and tackling bogus self-employment, still need full implementation. Nowak concluded with a call for progressives to engage with the government rather than spectate: "It’s not our job to carp from the sidelines, it’s to try to engage the government and lobby them."
