Brexit has not been good for Britain, says Rachel Reeves as she calls for closer EU alignment
Saying that Brexit is not good for England, Rachel Reeves said that England should harmonize more closely with the EU.
The Chancellor was clear in his criticism of the UK’s exit from the EU, saying there was now “a lot we can do to improve our trade relations”.
As Britain struggles with stagnating economic growth and ongoing fears about the cost of living, Ms Reeves argued that closer ties with the EU were the “greatest reward” economically.
It comes ahead of the Mais conference in the City of London, where the chancellor is expected to focus on artificial intelligence and regional growth, as well as building closer ties with the bloc.
Ministers have been stepping up their attacks on Brexit in recent months, particularly ahead of last year’s budget, saying the decision to leave the EU had a bigger impact on the UK economy than critics had anticipated, as part of an attempt to draw a dividing line with a Reformed UK.
Speaking to The Times, Ms Reeves said: “Brexit has not been good for our country, in terms of growth, in terms of prices in the store. It is almost a decade since we voted to Leave. That ship has sailed but there is a lot we can do to improve our trading relationships. Where that requires adaptation in terms of our national interests, we must absolutely adapt.”
The Chancellor said he had recently met a supermarket boss and the chairman of a major conglomerate, both of whom argued Brexit was causing serious economic pain.
“These are two big businesses that are saying it’s hard for us and driving up prices and costs, but it’s really hard for small businesses.”
It comes as Sir Keir Starmer prepares a bill that would give ministers the power to bring Britain into line with EU law as part of a bid to reduce paperwork and boost growth in the UK.
The bill, to be put forward this year as part of the government’s Brexit ‘reset’ plan, would give ministers sweeping powers to bring the UK into line with EU law in certain areas such as food standards, animal welfare and pesticide use, a process known as dynamic alignment.
Speaking to The Times, the Chancellor also said he wanted an “ambitious” youth mobility plan with the EU that would allow young people from the bloc to live and work in Britain and vice versa.
Ms Reeves said negotiations were currently “live” but insisted it would not represent a “return to free movement”.
The Chancellor’s bid for closer ties with the EU comes as the world grapples with increasing turbulence and economic shocks as a result of escalating conflicts in the Middle East.
It is feared the war could hit the cost of living around the world, following global benchmark Brent crude. oil pricesIt jumped above $100 (£74) a barrel for the first time since 2022 earlier this week, contributing to higher fuel bills and increased risk to households. energy costs across the UK.
Meanwhile, official figures revealed that economic growth remained flat in January; This has raised fears that rising fuel and energy prices could push the struggling UK economy into recession and put pressure on the chancellor to ensure households are protected.
But Ms Reeves argued that Britain was in a better position to weather the turbulence because the economic choices it had made had put Britain in a better financial position.
“It shows that we were right to do what we did in the first year and a half because we are in a much stronger position economically and financially to deal with this than we would have been 18 months ago,” he said.
“I feel that very strongly. When I arrived there was no money left; interest rates were too high. Our borrowing costs were too high. They were much higher than other countries and weren’t coming down. And it took a year and a half to get us to a better place.”
