The House of Commons has voted to begin talks with the European Union about creating a new customs union with the UK – a move that could begin the reversal of Brexit. It comes after Labour Deputy Prime Minister David Lammy said the UK would be better off if it rejoined the customs union, which it left as part of exiting the EU.

EU nations are in a customs union, which means there are no barriers to trade between them, and they all have the same tariffs on goods from outside. Most Labour MPs abstained in the Commons vote, but 13 voted in favour of the UK holding talks with the EU while just three voted against. A total of 100 MPs voted in favour, including Liberal Democrat, Green and SNP MPs.

The number of MPs voting against was also 100, after Conservatives and Reform MPs opposed the plan. Under House of Commons conventions, the Speaker then voted in favour, allowing the debate to continue.

It meant a proposed law that would require the Government to begin talks with the EU passed its first hurdle in the Commons. However, further votes would be required before the law comes into force.

Jubilant Lib Dem leader Sir Ed Davey said: “Today was a historic victory for the Liberal Democrats – winning a vote in Parliament to finally end the economic nightmare of the Conservatives’ broken Brexit deal.

“Across the country, people are crying out for real change and a solution to the cost-of-living crisis.

“A customs union with the EU is the single biggest step the Government could take to grow our economy, put money back into people’s pockets and generate billions for our public services.

“The Prime Minister must now listen to Parliament and the public, drop his self-imposed red lines and finally go for proper growth through an ambitious trade deal with the EU.”

But a Conservative MP said Brexit had made the UK stronger and that the plan would cause more uncertainty for employers.

Tory Simon Hoare argued that the UK had not been weakened as a result of leaving, pointing to European leaders’ visit to Downing Street on Monday to discuss the war in Ukraine.

He said: “As somebody who voted to remain part of the European Union in the referendum, and campaigned strongly to do so, I accepted the result of the referendum.”

He added: “We all want to see an increase in trade with the European Union, and we all want to see the uplifting benefit that that has to all of our citizens.

“But the proposal before us in this Bill is not the way to achieve it.”

He also said that businesses need certainty, which this would fail to create, and that the EU has “neither interest in it nor appetite for it”.

Mr Lammy, who is also Justice Secretary, has made the case for a new customs union with the EU, although this is not currently government policy.

Speaking to The News Agents podcast, Mr Lammy said: “It’s self-evident that leaving the European Union badly damaged our economy, took us out of an important marketplace and created serious friction.

Asked if the UK should join a customs union with the EU, he said: “That’s not currently our policy, that’s not currently where we are.”

But he said Turkey, which is in a customs union with the EU, was “seemingly benefiting and seeing growth in their economy”.