Rachel Reeves says UK must stay close to Europe after Brexit ‘damage’
Rachel Reeves emphasised the importance of staying close to European allies in the aftermath of the 'damage' of Brexit at her Mansion House address
Britain's alliance with the EU is more important than any other, Rachel Reeves announced in her third and likely last speech as Chancellor at Mansion House.
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In the speech, which is expected to ruffle feathers across the pond, Ms Reeves reflected on the "damage" that Brexit did to UK relations with Europe.
The Chancellor emphasised that the UK should be "included, not excluded" in European relations by default.
Ms Reeves said: “In our age of insecurity, the economic strength of our country will rest on strategic alliances. No alliance is more important than our relationship with the European Union.”
“I have always been clear about the damage that Brexit did to our economy," she said.
"Britain’s future is inescapably bound with that of Europe – our largest trading partner, with whom we share common interests and common values.
She added: "The prize for Britain of a closer relationship with Europe is immense.”
Read more: British economy 'beat the odds because of my choices' Reeves to say
The speech comes as Westminster prepares for the arrival of incoming prime minister Andy Burnham.
Ms Reeves appears to have acknowledged that she will not stay on as chancellor, though Mr Burnham has not formally revealed any Cabinet appointments.
The Makerfield MP is the only candidate in Labour’s leadership process and is widely expected to officially take over from Sir Keir Starmer on Monday, July 20, after the Prime Minister announced his resignation last month.
In what appears to be a speech to cement her legacy at Number 10 in the memories of the British public, Ms Reeves told finance leaders at Mansion House that Britain’s economy has “beaten the odds” with her at the helm.
"I'm proud to report that the British economy is strong," she announced. "At the start of this year, Britain had the fastest economic growth in the G7."
"Last year, borrowing fell from 5.2% to 4.2% of GDP – its lowest level in six years. "Investment is up, productivity is up, and wages are up too."
She added that if she had predicted two years ago that Britain would be in its current position, "people would have doubted it".
"But we have proven the doubters wrong," she said. "Through strength, resilience and determination, Britain has beaten the odds once again."
The national economy is set to remain stagnant for another month, while some industries continue to face pressure and the war in Iran poses further challenges to growth.
On Thursday, the Office for National Statistics (ONS) will share May’s gross domestic product (GDP) figures after a period of global turbulence during the war.
"The resumption of hostilities in the Middle East in the last few days has shown that our economic resilience will continue to be tested," she said.
She claimed that her economic approach, which she labelled "securonomics", had blended radical reform with fiscal credibility.
"This government has shown that change, indeed radical change, is possible," she said.