Sir Keir Starmer has been urged to follow up Labour’s spate of direct attacks on Brexit by negotiating a new customs union between the UK and the EU. Liberal Democrat leader Sir Ed Davey pushed Labour to forge a new customs union during Prime Minister’s Questions.

This follows Chancellor Rachel Reeves describing the impact of Brexit as “severe and long-lasting”. Labour election manifesto contained a pledge there will be “no return to the single market, the customs union, or freedom of movement”.

But in the Commons chamber, Sir Ed looked at the Labour benches and said: “I know members opposite are relieved they are finally allowed to say the Conservatives’ Brexit deal is a disaster. But [that] can’t just be a political ruse to attack [Nigel Farage], however much he deserves it or – even worse, [given] we have the highest inflation in the G7 – it mustn’t be a smokescreen to raise taxes on ordinary people.”

Challenging the Prime Minister to strike a new deal with the EU, he said: “Will the Prime Minister act now to repair the Brexit damage by negotiating a new EU-UK customs union to boost Britain’s trade and grow our economy?”

Sir Keir steered clear of endorsing the Lib Dem leader’s proposal.

He said: “No, I don’t think that’s the way forward. What we’ve done is to have a much closer relationship with the EU, recognising the damage done by the flawed deal the [Conservatives] negotiated. We’ve also struck deals with India and with the US, [and have] record investment into this country and the fastest growing economy in the G7 in the first half of this year.”