Sir Keir Starmer was forced to clarify his position on joining an EU customs union after his deputy David Lammy praised how membership had boosted growth in other countries.
The Prime Minister was asked in relation to Mr Lammyâs comments why he was not advocating for membership given that growth is an ongoing priority for his government.
He said Labour would be sticking to its manifesto, which pledged to deepen ties with the EU without returning to the customs union, single market or freedom of movement.
âWell, the position that we are taking has been clearly set out in the manifesto, and then weâve been following it.
âAnd earlier this year, we had the first UK-EU summit ever, and we had 10 strands for a closer relationship.
âSo weâve totally reset relations with the EU.
âThatâs good for our economy, good for defence and security, good for the work that we need to do on energy.
âAnd weâve transformed, really, in 17 months in office, to a country that was looking disinterested in being on the world stage, to a country thatâs now respected again, and where other countries are looking to us for influence, for advice, for partnerships.
âYouâre seeing that with the EU, but of course elsewhere across the world.
âSo Iâm really pleased that weâve been able to move things forward.â
No 10 earlier insisted Sir Keir would be sticking to his âred linesâ as he seeks to reset ties with the bloc.
Deputy Prime Minister Mr Lammy had said it was âself-evidentâ that countries like Turkey with a customs union with the bloc have seen growth in their economies because of it.
He told the News Agents podcast: âItâs self-evident that leaving the European Union badly damaged our economy, took us out of an important marketplace and created serious friction, that untruths were being peddled by those that thought exiting the EU would be a good thing.
âAnd itâs why every single day that I was foreign secretary, I returned to the subject of our relationship with the European Union,â he said.
Asked repeatedly if he would like to see the UK in a customs union, he said: âThat is not currently our policy.
âThatâs not currently where we are.
âBut you can see countries like Turkey with a customs union seemingly benefiting and seeing growth in their economy, and again, thatâs self-evident.â
The Prime Ministerâs economic adviser Minouche Shafik has also reportedly advocated behind the scenes for joining a customs union.
A Downing Street spokesman said: âWe are strengthening our relationship with the EU while sticking to our red lines, no rejoining the single market or customs union, and no return to freedom of movement.â
He pointed to a speech Sir Keir gave on Monday, in which he said there was âno credible economic visionâ for the UK that does not position the country as an âopen trading economyâ.
The UK needs to deepen its relationship with the EU and clinching closer ties with the bloc will require âtrade-offsâ, the Prime Minister added in the address at the Lady Mayorâs banquet.
