Closer UK-EU Ties Could Boost Growth, Says Chancellor Rachel Reeves

Closer economic ties between the UK and the EU will foster growth, Chancellor Rachel Reeves told European finance leaders, Dearbail Jordan reported for BBC News.

While the Labour government has ruled out rejoining the EU, Reeves reiterated its commitment to “deepen ties” with the bloc.

Speaking at the Eurogroup meeting in Brussels—the first address by a UK chancellor since Brexit—Reeves emphasized the importance of “breaking down barriers to trade” and supporting businesses to access each other’s markets.

While the Labour government has ruled out rejoining the EU, Reeves reiterated its commitment to “deepen ties” with the bloc.

The opposition Conservatives criticized the Chancellor, arguing she should focus on reversing "damaging Budget measures" that have shaken economic confidence.

Shadow Business Secretary Andrew Griffith stated, “If Reeves 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.”

The British Chambers of Commerce (BCC), representing around 50,000 businesses, noted that economic growth hinges on boosting exports. However, UK businesses face significant regulatory and paperwork burdens that impede their ability to trade globally.