Wes Streeting’s suggestion that Britain should join a customs union with the EU has been seen as an “early shot” in a possible leadership contest, as the health secretary was accused of making a fresh bid to succeed Sir Keir Starmer.
The health secretary told The Observer newspaper a “deeper trading relationship” with Europe would be a means of boosting the UK’s economic growth, in what appeared to be a direct challenge to Sir Keir.
The move has reopened deep divisions in Labour as MPs prepare to try to relax for Christmas just a month after Downing Street officials were accused of briefing that the health secretary was trying to launch a coup against Sir Keir.
Veteran Labour MP Graham Stringer told Times Radio: “I think it’s a very complicated issue and it’s just Wes being opportunistic, knowing that, I think it’s nearly 30 per cent of the Labour Party membership is in London and most of those people seem to be in favour of rejoining the EU. So it’s an early shot in what might be a leadership election after the May local elections.”
The prime minister has ruled out a change in the government’s policy towards a customs union only in recent weeks.
And a Downing Street spokesperson on Monday deflected questions about a split over the EU in the cabinet.
He said: “The PM is very happy with his cabinet, they’re getting on with the important work of driving down the cost of living, targeting growth and turning renewal into reality for the year ahead.”
But he confirmed that the government “will stick to its red lines from the manifesto” and not rejoin the customs union, single market or EU itself.
However, a government source, meanwhile, accused Mr Streeting of “setting out his stall” for a leadership bid in his Observer interview, according to The Times.
Only in November was the health secretary forced to deny suggestions he wanted to oust Sir Keir from Downing Street and replace him.
He continued to shrug off claims he wants to be prime minister as he spoke to The Observer.
“The closer I see that job and the pressure on Keir and the demands of that job, the more I wonder why anyone would want it,” Mr Streeting said, later adding the PM has “got my absolute support”.
In what has been seen by some as an attempt to create a dividing line with the PM, Mr Streeting ruled out a return to the single market, and thereby freedom of movement, but appeared to leave the door open to a customs union.
“The best way for us to get more growth into our economy is a deeper trading relationship with the EU,” he said.
Mr Streeting added: “The reason why leaving the EU hit us so hard as a country is because of the enormous economic benefits that came with being in the single market and the customs union. This is a country and a government that wants a closer trading relationship with Europe.
“The challenge is any economic partnership we have can’t lead to a return to freedom of movement.”
However, the health secretary’s intervention has not endeared him to pro-EU Labour MPs.
One senior MP told The Independent: “Wes will regret going for the customs union as it’s a lot of pain for little gain. The real prize is an agreement similar to Switzerland [with access to the single market].”
Under a customs union arrangement, the UK would get access to tariff-free trade with the bloc, while having to accept common standards for traded goods.
Rejoining the customs union would undo trade deals Britain has struck with the US and India, the PM has warned.
The European Movement UK’s campaigns manager, Michael Anderson, said: “Wes Streeting is right to reopen the conversation about the customs union. The damage that leaving the EU has done to our economy continues to make us all poorer. A customs union with the EU would inject much-needed adrenaline into our struggling economy in a way that striking trade deals around the world simply cannot achieve.”
Cal Roscow, executive director of campaigns at Best for Britain, added: “As a customs union will likely take much longer to negotiate, we must remain clear-eyed about what we must deliver quickly – particularly on access to security action for Europe [Safe] in the face of external threats.”
Sir Keir has recently faced pressure from his own backbenchers to change course on a customs union.
On 9 December, some 13 Labour MPs voted in the Commons in favour of proposals which would pave the way for a new customs union, the Customs Union (Duty to Negotiate) Bill, though this is highly unlikely to become law.
Responding to Mr Streeting’s comments, a Conservative Party spokesperson said: “Instead of focusing on running the health service, Wes Streeting is busy courting left-wing, pro-EU Labour Party members – now even floating the idea of dragging Britain back into the EU’s customs union.
“Patients and NHS staff deserve a health secretary focused on delivery, not political pitch-making.”
Reform UK deputy leader Richard Tice MP said: “Starmer’s so-called ‘reset’ deal was already a shameful betrayal of what people voted for in 2016 and now we’ve heard it straight from the horse’s mouth. Labour remoaners like Wes Streeting will not be satisfied until every valuable Brexit freedom is surrendered directly to Brussels.”
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