Jeremy Corbyn has teed up an alliance with pro-Remain Tory rebels by laying out a plan for a softer Brexit.
The Labour leader backed creating a new customs union with the EU in his first significant divergence from the UK Government’s exit strategy.
In a major speech in Coventry, Mr Corbyn said his party would seek “full access to European markets”, including holding on to the benefits of the single market.
But he insisted that free movement would end on leaving the EU and be replaced with “reasonable management of migration”.
“Labour would seek a final deal that gives full access to European markets and maintains the benefits of the single market and the customs union…with no new impediments to trade and no new reduction in rights, standards and protections.
“We have long argued that a customs union is a viable option for the final deal so Labour would seek to negotiate a new, comprehensive UK-EU customs union to ensure there are no tariffs with Europe and to help avoid any need whatsoever for a hard border in Northern Ireland.”
He added: “Labour respects the result of the referendum and Britain is leaving the EU. But we will not support any Tory deal that would do lasting damage to jobs, rights and living standards.”
The permanent customs union plan marks a policy shift for Labour, who previously would only commit to a temporary union during a Brexit transition period.
It stops short of supporting membership of the European single market, which requires states to sign up to the free movement of people, services, goods and capital.
Foreign Secretary Boris Johnson described Mr Corbyn’s position as a “betrayal” of the Brexit vote and a “cynical” and “deluded” attempt to link up with Tory rebels to inflict a damaging defeat on the PM in an upcoming expected vote on a cross-party amendment calling for a customs union.
Nicola Sturgeon tweeted: “I welcome any Labour movement in right direction but, to be honest, it still sounds very similar to the ‘have cake and eat it’ approach of PM.”
The First Minister added it was “beyond me” why Labour was choosing not to back membership of the single market and customs union “in full”.
Liberal Democrat leader Vince Cable said the Labour leader’s shift on the customs union was a “small step to sanity”.
Kirsty Hughes, director of the Scottish Centre on European Relations, questioned Mr Corbyn’s stance saying he “wants all benefits, but exemptions from rules”.