Closer ties between Britain and the European Union will boost economic growth, Chancellor Rachel Reeves will tell European finance leaders on Monday.
In the UK chancellor’s first post-Brexit address to the Eurogroup, Reeves will say that realigning the relationship means “removing barriers to trade” as well as “selling businesses into each other’s markets”. to help
Although Labor has ruled out rejoining the bloc, it has repeatedly said it wants Britain to have a “deeper relationship” with the EU.
Conservatives said the chancellor should instead work out how to reverse “disastrous budget measures that have damaged confidence”.
“If [Reeves] Interested in development, she should ask the Prime Minister to get on a plane and go to America to talk. [President-elect] Andrew Griffiths, the shadow business secretary, said that Trump does not seek to drag Britain back into the slow-growing EU, when it comes to striking a US-UK trade deal.
The British Chambers of Commerce (BCC), which represents around 50,000 businesses, said that “we need to export more” to grow the economy but UK firms are “burdened with huge regulatory and paperwork”. are struggling under”.
At a meeting of Eurogroup finance ministers in Brussels, Reeves will propose building a “mature, business-like relationship” between the UK and the EU.
“I know there have been disagreements over the last few years,” she would tell her European counterparts. “Division and chaos defined the last government’s vision of Europe. It will not define us.”
She will say: “I believe that a closer economic relationship between the UK and the EU is not a zero-sum game. It is about improving both our growth prospects.”
Liberal Democrat Treasury spokeswoman Daisy Cooper said: “The Conservatives’ Brexit deal is a disaster for the economy, with small businesses, farmers and fishermen all caught up in endless red tape.”
In a highly unusual move last month, Bank of England Governor Andrew Bailey said: Britain 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 is more in goods than services… but it highlights why we must be alert and welcome opportunities to restore relations while respecting this very important decision of the British people. should.”
Exports of goods, such as food and agriculture, have been affected by new trade barriers. But services, including banking, have performed better than expected.
Labor has said it is committed to implementing the post-Brexit agreements made 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: “Reviving the relationship is about doing what is best for our shared economies and what they depend on.
“This means breaking down barriers to trade, creating investment opportunities and helping businesses sell into each other’s markets.”
Reeves’ speech comes at a critical time for 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.