Labour deputy leader last night boasted they are now the party of 'soft Brexit' and could keep Britain permanently subject to EU rules.
The party tried to end months of chaos over its Brexit position last week by saying it would keep the UK in the single market and customs union for a transitional phase of up to four years.
And now Tom Watson said the party could go even further and try to keep Britain in the trade organisations forever.
This would keep the UK bound by EU judges and rules, and would probably mean having to accept free movement of people from the bloc.
It would also prevent ministers from being able to strike free trade deals around the world despite the historic referendum result.
The move will spark anger and accusations of betrayal among many Labour voters in the party's northern heartlands who voted 'Leave' last year.
Labour deputy leader Tom Watson, pictured on Newsnight last night, said Labour is the party of soft Brexit and could try to keep the UK in the single market and customs union forever
Speaking On BBC's Newsnight last night, Mr Watson said Labour's Brexit spokesman Sir Keir Starmer had made the party's position clear.
Asked is Labour is the party of soft Brexit, he said: 'Yes.
'You have seen Keir Starmer's statement, we think that being part of the customs union and the single market is important in those transitional times because that is the way you protect jobs and the economy.
'And it might be a permanent outcome of the negotiations, but we have got to see how those negotiations go.'
Labour has been accused of being shambolic over Brexit - torn over appealing to its working class northern base and its younger,