Securing a ‘softer’ Brexit deal is central to Labour’s plan to boost economic growth, Rachel Reeves pledges – as she travels to Brussels to meet EU counterparts TODAY_Nhy
Securing a softer Brexit deal is ‘central’ to Labour’s plan to boost economic growth, Rachel Reeves will tell EU finance chiefs today.
In a statement of intent, Ms Reeves will travel to Brussels today to attend a meeting of EU finance ministers – the first British Chancellor to do so since the UK left the bloc almost five years ago.
She will tell them that she sees ‘breaking down barriers to trade’ as a key goal. And she will offer to work with them to make the case for free trade with the incoming Trump regime in Washington, which has threatened to impose tariffs on all imports.
Ms Reeves is among the ministers pushing hardest for a ‘reset’ of relations with Brussels in the hope of boosting exports and growth.
A Treasury source last night said that Labour’s manifesto ‘red lines’ would remain in place, meaning that the UK will not rejoin either the single market or the customs unions or reinstate free movement.
But the source said a ‘central part’ of the government’s growth plan ‘will be achieved through a closer relationship with the European Union’.
The Chancellor will acknowledge Britain and Europe’s ‘fractious’ relationship in recent years, telling her counterparts: ‘Division and chaos defined the last government’s approach to Europe. It will not define ours.’
She will add: ‘We want a relationship built on trust, mutual respect, and pragmatism. A mature, business-like relationship where we can put behind us the low ambitions of the past and move forward, focused instead on all that we have in common. And all that we might achieve together to keep our countries safe, secure and prosperous.’
Rachel Reeves will today travel to Brussels for a meeting of EU finance ministers – the first Chancellor to do so since the UK left the bloc five years ago
Ms Reeves will tell her EU counterparts that ‘breaking down barriers to trade’ is one of her key priorities
Ms Reeves will argue 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.
She will say this means ‘breaking down barriers to trade, creating opportunities to invest and helping our businesses sell in each other’s markets’.
A Treasury source said the Chancellor would also make the case for the UK and the EU to join forces in ‘championing free trade’ against a potentially protectionist White House administration.
Ministers fear that a US-inspired trade war could wreck the government’s hopes for boosting economic growth in the coming years.
Sir Keir Starmer has put the idea of an EU reset at the top of his diplomatic priorities during his first months as Prime Minister, holding private talks with a string of EU leaders.
But he has given little clue publicly about what trade offs he is willing to accept in return for Brussels removing some of the economic barriers imposed in the wake of the UK’s departure from the EU.
Privately, EU diplomats complain that ministers have also been coy with them about exactly what the PM is seeking. And there is frustration in Brussels at the UK’s failure to embrace proposals for a ‘youth mobility scheme’ which would allow young people from across the EU to live and work in the UK for a set period.
A diplomatic source said it would be ‘tough’ for the UK to get any significant concessions on trade unless it gives ground on the youth mobility issue.
A Treasury source said the Chancellor would also make the case for the UK and the EU to join forces in ‘championing free trade’ against a potentially protectionist White House administration (file photo)
But ministers fear the scheme would be seen as Labour bringing back a form of free movement. And Home Secretary Yvette Cooper has warned it would add to net migration figures at a time when they are already at near-record levels.
Labour’s manifesto pledged a new veterinary agreement to reduce barriers to trade in food, along with a push for greater mutual recognition of professional qualifications.
But Brexiteers fear this would involve the UK aligning itself with EU rules and accepting a role for the European Court of Justice in settling disputes.
Lib Dem deputy leader Daisy Cooper urged ministers to move further and faster in cosying up to Brussels, saying ‘warm words’ were not enough.
‘The Government needs to be more ambitious about rebuilding stronger ties with our European allies,’ she said.
‘It’s difficult to understand why they are failing to pursue the UK-EU Youth Mobility Scheme, which would be a good first step, provide a boost to the economy and give young people opportunities to live and work across Europe.’
Shadow business secretary Andrew Griffith urged the Chancellor to focus on reversing her ‘devastating Budget measures’.
He added: ‘If she is interested in growth, she should tell the Prime Minister to jump on a plane to the US and talk to Trump about getting a US-UK trade deal done, not trying to take Britain backwards into the slow growth EU.’