Chancellor Rachel Reeves will address European finance leaders in Brussels, calling for a reset in UK-EU relations to boost economic growth. In the first address by a British Chancellor to the Eurogroup since Brexit, Reeves will outline plans to “break down trade barriers” and help businesses access each other’s markets.
While Labour has ruled out rejoining the EU’s single market or customs union, Reeves will emphasise the importance of a closer, “business-like relationship”. She is expected to propose agreements on food and farm exports, a veterinary deal and streamlined processes for manufacturing supply chains.
Reeves will highlight the benefits of collaboration, stating: “A closer economic relationship is not a zero-sum game. It’s about improving growth prospects for both sides.”
The British Chambers of Commerce welcomed the focus on exports but warned that UK firms face heavy regulatory and paperwork burdens. Critics, including the Conservatives, accused Labour of looking backwards, urging a focus on securing a US trade deal instead.
Labour’s plans could face challenges, including potential trade-offs with EU food standards that may complicate future US negotiations. The EU also seeks a reciprocal scheme for young workers, which Labour has previously rejected.
Bank of England governor Andrew Bailey has called for rebuilding relations with the EU, emphasising the trade impact on goods while noting service resilience. Reeves aims to foster growth while addressing the consequences of Brexit and ongoing economic challenges.
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