Britain’s economy has been damaged by Brexit. But what should ministers do about it?

The idea of a customs union has gained traction, but agreeing a deal would be far from straightforward

Almost a decade on from the Brexit vote, the verdict is clear. Britain’s immediate doomsday economic scenario might not have come to pass. But after years of political paralysis – and with the eventual introduction of tougher trade barriers in 2020 – trade, investment and growth in living standards have all suffered.

Just as it was on the morning after the 2016 referendum, the big fight is about what the government should do in response.

At the weekend, Wes Streeting became the latest frontbench Labour politician to call for a deeper trading relationship with the EU. His remarks were interpreted as a suggestion that Britain could join a customs union with the EU – something that Keir Starmer has ruled out.

As the UK’s single largest trading partner, the idea has its advocates. UK exports of goods and services to the EU were worth £358bn (41% of the global total) last year. Imports were worth £454bn (51% of the UK total).