Reeves to push for ‘deeper relationship with the EU’ as she makes major AI pledge
Rachel Reeves is set to place stronger ties with the EU at the heart of her plan for economic growth across Britain in the coming years.
The Chancellor is set to set out his “three big choices” for the next decade as he outlines his strategy for the future of the British economy at a conference in the City of London.
Reeves will push for stronger relations with the EU, as well as expansion of artificial intelligence and “growth across Britain”.
In his speech, the chancellor will say: “Britain is not powerless in this changing world. We can shape our own future. Stability, investment and reform through an active and strategic state is our way.”
“Today, I make three big choices on the biggest growth opportunities for Britain over the next decade: growth across Britain, AI and innovation, and a deeper relationship with the EU.
“Our plan is clear. To build for growth, support innovation and make Britain where the industries of the future are created.”
Alongside these measures, a £2.5 billion investment in advanced computing will also be announced, as Reeves is set to push for the UK to “achieve the fastest adoption of AI in the G7”.
He will say: “In a world defined by technological change, Britain cannot afford to stand still. With this strategy, I believe we can approach the future with confidence, with the technologies of the future being invented, built and deployed right here in Britain.”
When the Prime Minister took office he pledged to reset Britain’s relationship with Brussels and promised to restore ties with the EU damaged by the previous Conservative government.
Sir Keir last year clinched the landmark first deal, which includes deals such as allowing British tourists to use fast-track e-gates at European airports, a 12-year extension of a deal for EU trawlers to access UK waters and an open-ended agreement to cut red tape on food and drink exports and imports.
But talks aimed at Britain potentially joining the European Union’s new €150bn (£130bn) Security Action for Europe (Secure) rearmament fund collapsed at the end of last year.
The technology funding package announced on Tuesday will include a new £1 billion procurement program for quantum computers, which the Treasury believes will lead to the development of prototypes of the most advanced quantum computers in the world.
As part of the plans, a £500 million “government AI fund” will be launched at tech firm Wayve in April, which will aim to give UK companies access to finance and other support to help them compete globally.
The conference comes after Britain’s economy made an unexpectedly flat start to the year in January, ahead of concerns about rising inflation caused by the conflict in Iran and skyrocketing oil prices.
Worse-than-forecast figures from the Office for National Statistics (ONS) have raised fears that the surge in the wake of the Middle East crisis will hit the already stagnant UK hard.
Announcing the new investment alongside the chancellor, Technology Secretary Liz Kendall argued that quantum computing would bring high-paying jobs and improvements to public services.
“Today’s announcements are an investment in our future, opening the door to better health, wealth and more opportunity for communities across the country,” he said.
The Conservative Party accused the Chancellor of mismanaging the economy and said his determination to forge closer ties with Brussels signaled Labor’s desire to roll back Brexit, which the government has rejected.
Shadow chancellor Mel Stride said: “It’s no secret that Reeves and Starmer have wanted to backtrack on Brexit from day one – and in the Chancellor’s speech today we can expect to hear more details about Labour’s plan to bring us closer to the EU.
“Workers are desperate to blame anyone but themselves for their economic failure.
“Under increasing pressure for mismanaging the economy, Reeves would rather point the finger at Brexit than admit his poor choices have been a disaster for our economy.”
