Lib Dems claim deeper trade deal with EU would raise £25bn of tax revenue

Calum Miller, the Lib Dem foreign affairs spokesperson, has written to Labour MPs to say his party wants to work constructively on a new trade deal with Europe to boost public finances. Photograph: Harry Lawlor/The Guardian

A deeper trade deal with the EU that stops short of joining the customs union or single market could bring in £25bn of tax revenue and pay for reversing benefit cuts, according to research cited by the Liberal Democrats.

The party is writing to all Labour MPs this week asking them to join forces in a push for a much more comprehensive deal with Brussels, saying that backing closer trade ties would help revive the public finances.