JEREMY Corbyn was accused of trying to “have his cake and eat it” after he seemingly softened Labour’s position on Brexit, announcing support for a “new and comprehensive” customs union with the EU.

In a bid to put a clear dividing line between Labour and the Tories over Brexit, Corbyn said his party would “seek to negotiate a new, comprehensive UK-EU customs union”.

In his speech to an audience of party supporters in Coventry, Corbyn insisted this was no new position form Labour, but rather what the party had been saying since the referendum 20 months ago.

He said: “Every country, whether it’s Turkey, Switzerland, or Norway that is geographically close to the EU, without being an EU member state has some sort of close relationship to the EU. Some more advantageous than others.

“And Britain will need a bespoke, negotiated relationship of its own.”

He went on: “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, as the Brexit Secretary David Davis promised in the House of Commons 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.”

Boris Johnson said the proposals would leave Britain as a “colony” of the EU, effectively part of the bloc, but without any decision making powers.

The Brexiteer who is one of the frontrunners to replace May, tweeted: “Crumbling Corbyn betrays Leave voters - and all because he wants to win a commons vote - cynical and deluded,” the Tory Cabinet heavyweight wrote on Twitter.

“Corbyn’s Brexit plan would leave UK a colony of the EU - unable to take back control of our borders or our trade policy. White flag from Labour before talks even begin.”

Scottish First Minister, 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. Why Labour doesn’t just embrace a single market/CU outcome in full is beyond me.”

Taking questions after his speech, Corbyn said the reason his party couldn’t sign up to the single market and customs union as is, was the EU’s rules on competition and how it would stop his plans to nationalise the post office, and the water companies.

“For example the nationalisation of RBS, in order to accommodate European rules, was accompanied by the selling off of some of the best parts of RBS, and the public was left with the remainder,” he said.

“The idea that competition rules work for the benefit for all, we do not believe to be the case,” he added.

Labour has faced criticism in the past for a muddled position on Brexit. It’s never been entirely clear what a job first Brexit is, or what’s been meant by access to the single market.

And there were still questions after the speech yesterday. It seems unlikely that Europe would accept the deal.

One diplomat, speaking to Reuters on condition of anonymity said: “Corbyn’s speech is most welcome but he cannot expect the EU single market to become the cherry on his ‘new cake’.”

There was, however, a mostly positive reaction to the intervention from business, as well as pro-EU MPs from all parties.

Carolyn Fairbairn, CBI director-general, said Corbyn’s commitment to a customs union would “put jobs and living standards first by remaining in a close economic relationship with the EU”.

The SNP’s Stephen Gethins said Corbyn needed “to go further”.

“It has taken Labour a full 20 months since the EU referendum to come to the realisation that the UK’s continued membership of a customs union is vital in protecting our economy, jobs and living standards, yet they need to go further and support membership of the single market.

“It is staggering that Jeremy Corbyn can quote back the UK government’s leaked economic Brexit analysis, yet choose to leave out the fact that the analysis shows out of the three likely outcomes of the Brexit negotiations, remaining in the single market and customs union is the least damaging option.

Ross Greer, from the Scottish Greens was sceptical about Corbyn’s proposal: “They claim a Labour government would cherry-pick benefits of the Single Market despite the EU’s clear and sustained objection to any cherry-picking.

“Have they not paid any attention to the last twenty months?”