Former chancellor George Osborne says Britain should rejoin customs union
George Osborne, former UK chancellor, argues that leaving the EU customs union has hurt Britain’s economy and that re‑joining would be the quickest way to recover. He stresses that the customs union can be re‑entered without the complications of the single market or free movement of people.
Former British chancellor George Osborne has warned that the United Kingdom’s economy has "fallen off a cliff" since the 2016 referendum that set the country on a path out of the European Union. In a recent interview with The Independent, Osborne said the decision to leave the EU customs union has had a devastating impact on trade and growth, and that re‑joining the customs union would be the fastest route to recovery.
What Osborne says about the economic fallout
Osborne, who served as chancellor under Prime Minister David Cameron during the Brexit campaign, described the post‑Brexit economy as "basically gone off a cliff". He added that the country is now "clearly poorer than it would otherwise be" because of the loss of frictionless trade with the continent. The former minister argued that the customs union was never part of the public debate when the vote was taken, and that its removal has created a significant trade barrier that is difficult to overcome.
Why re‑joining the customs union could help
According to Osborne, the customs union is a "quite simple thing to do" and would restore tariff‑free trade with EU member states. He noted that the idea of leaving the customs union was linked to the belief that the UK could strike better trade deals elsewhere, especially with the United States. "That all looks pretty fanciful now," he said, suggesting that the promised gains from a new trade partnership have not materialised.
Osborne also highlighted that the customs union does not require the UK to accept the free movement of people, a contentious issue that has made the prospect of re‑joining the single market politically difficult. He argued that the economic benefits of the customs union outweigh the political costs, and that the UK can regain trade and investment with Europe without the complications of the single market.
Political context and public opinion
Since the referendum, the UK has struggled to negotiate a trade agreement that satisfies both domestic and European partners. The new trade deal signed in 2021 has been criticised for its limited scope and for not restoring the level of economic integration that existed before 2020. Public opinion polls show a growing appetite for closer ties with the EU, especially among younger voters who are more concerned about economic stability and job security.
Osborne’s call comes at a time when the UK government is facing pressure to address trade barriers, supply chain disruptions, and a slowdown in economic growth. The former chancellor’s comments add weight to the debate over whether the UK should pursue a more pragmatic approach to its relationship with Europe, rather than a hardline stance on sovereignty.
What could happen next?
Re‑joining the customs union would require a new agreement between the UK and the EU, and would likely involve negotiations on customs procedures, regulatory alignment, and dispute resolution mechanisms. While Osborne believes the process is straightforward, the political reality is more complex, as it would necessitate a change in UK law and a shift in public sentiment.
For now, the UK government has not announced any concrete plans to re‑enter the customs union. However, Osborne’s comments have reignited discussions among policymakers, economists, and business leaders about the best path forward for Britain’s post‑Brexit economy.
In the coming months, the UK Parliament may need to consider legislation that would allow the country to re‑join the customs union, and the European Commission may need to respond with its own proposals. The outcome will depend on the political will of both sides and the urgency of addressing the economic challenges that have emerged since leaving the EU.
Ultimately, George Osborne’s warning underscores the need for the UK to reassess its trade strategy and to explore options that could deliver tangible benefits to the British economy without compromising national sovereignty.
Why it matters
Osborne’s remarks highlight the economic costs of Brexit and suggest a pragmatic solution that could restore trade flows and growth. His call for re‑joining the customs union may influence policy debates and shape the future of UK‑EU relations.
Key points
- George Osborne says the UK’s economy has "fallen off a cliff" since Brexit
- Leaving the EU customs union has created significant trade barriers
- Re‑joining the customs union is seen as a quick way to restore tariff‑free trade
- The move would not require acceptance of free movement of people
- Osborne’s comments add weight to the debate over UK‑EU economic ties
Frequently asked questions
What is the EU customs union?
The EU customs union is an agreement that eliminates tariffs and common external tariffs on goods moving between member states, allowing for free trade within the union.
How would re‑joining the customs union affect the UK?
It would restore tariff‑free trade with EU countries, reduce customs checks, and potentially boost exports and investment.
Does re‑joining the customs union mean re‑joining the EU?
No. The customs union is separate from the single market and does not require the UK to accept the free movement of people.
