Rachel Reeves: Closer UK and EU ties will boost economic growth
Closer relations between the UK and the EU will boost economic growth, Rachel Reeves will tell European finance leaders on Monday.
In the first address by a British chancellor to the Eurogroup since Brexit, Reeves will say resetting relations means “breaking down barriers to trade” as well as helping “businesses sell in each other’s markets”.
While Labour has ruled out rejoining the bloc, it has repeatedly said it wants the UK to “deepen ties” with the EU.
The British Chambers of Commerce (BCC), which represents around 50,000 businesses, said that in order for the economy to grow “we must export more” but UK firms “are struggling under huge regulatory and paperwork burdens”.
At the Eurogroup finance ministers meeting in Brussels, Reeves will propose building a “mature, business-like relationship” between Britain and the EU.
“I know that the last few years have been fractious,” she will tell her European counterparts. “Division and chaos defined the last government’s approach to Europe. It will not define ours.”
She will say: “I believe that a closer economic relationship between the UK and the EU is not a zero-sum game. It’s about improving both our growth prospects.”
Liberal Democrat Treasury spokesperson, Daisy Cooper, said: “The Conservatives’ botched Brexit deal has been a disaster for the economy, with small businesses, farmers and fishers all caught up in endless red tape.”
The Conservative Party has been contacted for comment.
Last month in a highly unusual move, Andrew Bailey, governor of the Bank of England, said that the UK must “rebuild relations” with the EU.
The governor has avoided commenting on Brexit because of the Bank’s independence from Westminster politics.
He said: “The impact on trade seems to be more in goods than services… But it underlines why we must be alert to and welcome opportunities to rebuild relations while respecting that very important decision of the British people.”
The export of goods, such as in food and farming, has been impacted by new trade barriers. But services, including banking, have performed better than expected.
Labour has said it is committed to implementing post-Brexit agreements struck under the previous Tory government.
These include the Windsor Framework which covers trade between the UK and Northern Ireland.
But Reeves will tell finance ministers: “The reset in relations is about doing what is the best interests of our shared economies and those that depend on it.
“That means breaking down barriers to trade, creating opportunities to invest and helping our businesses sell in each other’s markets.”
Reeves will give her speech at a key time for both the UK and European economies after President-elect Donald Trump threatened to impose tariffs of up to 20% on all goods imported into the US.
