Brexiteer blasts Rachel Reeves for ‘talking nonsense’ in huge EU row | Politics | News
A Brexiteer has repeatedly accused Rachel Reeves of “talking nonsense” about the UK leaving the European Union. The Chancellor defended Labor’s push for closer ties with Brussels, blaming Brexit in part for Britain’s economic woes.
He said the Office for Budget Responsibility would be “quite forthright” about the impact of Britain leaving the bloc. His comments come ahead of next month’s Budget, where further tax increases are widely expected.
Ms Reeves told the Regional Investment Summit in Birmingham: “We also know that things like austerity, capital spending cuts and Brexit are having a greater impact on our economy than was anticipated at the time, and I think the OBR will be quite frank about that.
“That is why, in my view, we have been shamelessly rebuilding our relationship with the EU to reduce some of the costs that have been unnecessarily added to businesses since 2016 and since we formally left a few years ago.”
He added: “The Budget will continue to focus on growth. I recognize that businesses have absorbed tax increases and other challenges over the past year, geopolitical uncertainty, high barriers to trade. I want to make sure this Budget is pro-growth and also address the deep challenges we face in maintaining stability in our economy.”
But former Brexit minister Lord Frost insisted the state of the British economy was “entirely the responsibility of the Labor government”.
He wrote of X: “Reeves is talking nonsense. The EU reset is being pursued for purely political reasons.
“The government’s own figures show that cowardly and unnecessary renegotiations would increase GDP growth by 0.02% per year, an increase of £9bn over 15 years. A rounding error within a rounding error.
“To offset against losses from accepting another party’s regulations without any say, the extra energy costs of a higher carbon tax, the direct financial cost of being subject to EU rules and much more.
“Just as a 4 percent hit to future productivity is absurd, the idea that a reset will help improve the economy is also absurd.
“Last year’s collapse in economic prospects is entirely the responsibility of the Labor government. No one else.”
It comes as the Chancellor is widely expected to announce major tax increases in his Budget next month.
