A UK-EU customs union to help tackle the cost-of-living crisis

That this House notes with deep concern that trade barriers arising from the previous Government's failed Brexit deal with Europe continue to drive up costs, increase bureaucracy and weaken competitiveness for British businesses and consumers, contributing to the ongoing cost-of-living crisis across the country; expresses alarm that small and medium-sized enterprises are being hit particularly hard by customs and regulatory burdens when trading with the EU, constraining growth, investment and exports; further notes that nearly half of UK exporters identify customs procedures and documentation requirements as major barriers to trade with the EU, resulting in significant costs, delays and supply chain disruption; recognises that the EU remains the UK’s largest trading partner and that deepening the UK’s trade relationship with the EU would generate significant economic benefits for Britain; believes that a new, bespoke UK–EU customs union would cut unnecessary Brexit bureaucracy, reduce trade friction at the border, strengthen supply chains, support exporters and manufacturers, and help tackle the cost-of-living crisis; notes that a customs union, together with deeper regulatory alignment on goods and services, could generate an increase to UK GDP of around 2.2% which would lead to roughly £25 billion a year in additional revenue for the public purse; further notes that this growth would be significantly larger than that secured from post-Brexit trade deals; and urges the Government to take forward the UK–EU Customs Union (Duty to Negotiate) Bill and begin negotiations with European partners on a new, bespoke UK–EU customs union.