Can Ed Davey end a "conspiracy of silence" about the reality of Brexit?
Liberal Democrats’ leader Ed Davey has called for a new customs union deal with the EU, saying it would “turbocharge” the economy, and give the UK more leverage when dealing with President Trump.
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In brief…
- Ed Davey has said the UK needs to make a new customs deal with the EU to deal with the power of President Trump.
- The Liberal Democrat leader says he is giving Keir Starmer’s Labour government suggestions of how it could work better, and says Tories and Reform are “throwing rocks” without offering alternatives.
- The News Agents say there is a notable shift in global politics with Trump’s return, and that Brexit chat is very clearly back on the agenda.
What’s the story?
It has been nine years since the UK voted for Brexit – and we are still talking about it.
Leaving the EU meant we were no longer part of the customs union, and no longer part of the privileges that came with it.
Now, Liberal Democrat leader Ed Davey has said the UK must strike a new customs deal with the EU, and said it's needed now more than ever to ensure the UK has leverage when dealing with President Donald Trump, and won’t be “bullied” into deals that suit his MAGA agenda.
Outside the customs union, UK goods are subject to tariffs and customs checks when exporting to the EU, meaning trade deals need to be signed with individual countries – something that is not permitted within the EU.
However, of the 70 deals signed since Brexit, most are simply on the same terms as we had in the EU, while others are with places such as New Zealand, with which the UK does very little trade.
It has been a longstanding goal of Ed Davey, and the Lib Dems, to rejoin the EU. He wants a customs deal negotiated this year, and implemented by 2030.
Davey's calls coincide with Brexit criticism from Conservative leader Kemi Badenoch, who has always been a firm backer of Brexit, but now says the UK should not have left the EU without a plan for growth.
It’s the first time since Labour came to power that the Lib Dems have presented a major challenge to Keir Starmer’s government.
Ed Davey ‘disappointed’ in ‘weak’ Labour government
Ed Davey tells The News Agents he's concerned Donald Trump will start "trade wars" and cause disruption in markets around the world, having already imposed huge import tariffs on goods entering the US from China, and other parts of the world.
During his first presidency, tariffs were put on British exports such as Scottish whiskey and British steel.
"Whether they're direct or indirect, I think it's really clear that we all suffer, and if we're going to try to stop that, I don't think the answer is to be weak," he tells Emily Maitlis and Lewis Goodall.
"I don't think the answer is to go cap in hand, I don't think the answer is Farage-like to go and lick his boots.
"I think the answer is to show you're stronger and show you have alternatives."
As of yet, Trump has not confirmed that there will be tariffs on any UK or EU goods, but markets are braced nonetheless.
Davey says that his speech demanding a new customs union comes after six months of feeling "disappointed" by Starmer's Labour government.
"I didn't support the cut in the winter fuel payments, I didn't support the way they've treated farmers," he says.
"I'm very disappointed that the social care reform agenda has been pushed back to a three year timetable, which won't help the NHS recover, and I'm very disappointed we don't have a decent growth agenda.
"I'm very worried about aspects of the budget which I think will hinder growth."
Davey adds his calls for a new customs union also come as part of his party's wider strategy to become the "best opposition" in the UK.
"Where I think Liberal Democrats are very different from Conservatives, Reform or anyone else, is we're not just throwing rocks at the government," he adds. "We're saying, here's what you could do instead."
"I want to be the best opposition and to be a good opposition.
"Yes, you criticise, but you should also put forward your own ideas. I don't see that from any other opposition party."
What's The News Agents' take?
Emily says that with the incoming Trump administration in the US, the UK is on the cusp of what could be a "brand new time" in our politics – and Davey’s stance on a new customs deal is a potential sign of that change.
"Labour feel like they're being forced to choose between a closer tie to America, whatever that entails, or a way of establishing our own relationship with Europe," she says.
"For Ed Davey, for the Lib Dems, it's pretty simple – you get back to what worked before."
Lewis Goodall says this may be the first "big crack" in the post-Brexit consensus, and the "uneasy conspiracy of silence" we've seen since the 2019 election.
"This is the first time that a party has been willing to say, let's fundamentally change our post Brexit arrangements,” he says.
But the most crucial issue here, The News Agents agree, is that Brexit conversations are back on the table.
"What we're seeing as time proceeds is more discontent and more recognition that the post Brexit economic settlement is not working well," Lewis says. "Fundamentally, we've got no growth."
"We're getting further away from Brexit – and from 2016 – and no closer to benefits,” Emily adds.