Ten years after Brexit, we're talking about getting closer to Europe again

Labour won't seek to rejoin the customs union but could this be the year Starmer looks to emulate the Swiss relationship with the EU, asks Catherine Neilan, Whitehall editor

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A decade after the country narrowly voted to leave the European Union, the Brexit omertà of the past few years is lifting.

Frustrated by the government's failure to ignite the economy, panicked by dire polls and conscious of the ticking clock, backbench Labour MPs are becoming increasingly vocal on the question of Britain's relationship with our nearest neighbours.

The idea of the UK rejoining the customs union once the preserve of fringe figures - is now being voiced by the deputy prime minister, David Lammy, potential leadership contender Wes Streeting and the prime minister's own economic adviser, Minouche Shafik.

So far, the three people who matter most in government - Keir Starmer, his chief of staff, Morgan McSweeney, and the chancellor, Rachel Reeves - have appeared unmoved, reluctant to make too much noise about Brexit for fear of losing the support of those who voted leave.

But the mood may now be changing in Downing Street. A customs union is still off the table, but The Observer understands that a proposal for a Swiss-style "dynamic alignment" deal, which would give the UK some access to the single market, is gaining support from some of those around Starmer.

"People [in No 10] have looked at the question and see that you get more growth, and less pain, from dynamic alignment than from a customs union," said one source close to the matter. "Dynamic alignment is where the pro-European people in Downing Street and the government are exploring, rather than a customs union. It may even be that they can outflank Wes if he wants to wear the customs union badge."

One supportive MP added: "If you want to turbocharge growth before the next election, you have to go for broke. The Swiss have sector-by-sector agreements [in] the single market. None of that is about rejoining, but it is just a much better deal with a much better economic impact, and likely to be of interest with the EU."