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Rachel Reeves has been urged to prioritise reversing the economic damage caused by Brexit as she becomes the first chancellor since Brexit to join a meeting of European finance ministers.
She is banking on Labour’s Brexit reset with the European Union to help deliver the economic growth she pledged ahead of the general election.
The chancellor is expected to say the UK and EU should aim to have a businesslike relationship going forward at Monday’s meeting, taking place in Brussels.
In an attempt to reset the dynamic, Ms Reeves is expected to 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.”
But she has been urged to address the impacts of the UK’s exit from the EU more explicitly, with pro-EU campaign group the European Movement saying ministers must use the meeting to “end the silence around the costs of Brexit and start a conversation about how to reverse the damage”.
Molly Scott Cato, a professor of economics and the group’s senior vice chair said: “First we engage in the economic self-harm of creating barriers between our businesses and our largest trading market; now we face an impact on a similar scale from Trump’s tariffs.
“We need to end the silence around the costs of Brexit and start a conversation about how to reverse the damage as well as defending our businesses.
“Reducing trade frictions is a useful start, but it is clear that our best protection would be taking our place as part of the powerful EU trading bloc and joining the customs union.”
Dr Mike Galsworthy, the group’s chair, said Brexit has been “been the elephant-in-the-room for far too long”.
“It is now reckless to ignore the severe damage that continues to be done to the public finances. It has long been draining the financial and social wellbeing of every single one of us – and yet completely ignored as if it does not exist.
“We must now have a forward-facing public inquiry into the true cost of leaving the European Union and the possibilities for repairing the scandalous destruction that has been done”, Dr Galsworthy said.
He added “We need as a matter of urgency to reach an agreement on food and farm exports with a new veterinary agreement.
“We must also seek a reduction in red tape surrounding pan-European supply chains in manufacturing and textiles. Our goods exports have suffered for the past few years due to the unanticipated bureaucracy that Brexit caused our exporters and businesses.”
It comes after Treasury minister Tulip Siddiq last month admitted that 60 per cent of the impact of Brexit is yet to materialise, citing Office for Budget Responsibility (OBR) forecasts that the economy would shrink by 4 per cent in the long run due to Brexit.
Ms Siddiq also said that Britain’s imports and exports would end up 15 per cent lower than they would be had the UK stayed in the EU.
During Monday’s meeting, Ms Reeves is expected to say: “We want a relationship built on trust, mutual respect, and pragmatism. A mature, businesslike 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”.
The meeting is expected to focus on tackling shared challenges like the war in Ukraine, championing free trade and strengthening economic partnerships.
But ministers have ruled out returning to the single market, the customs union, and freedom of movement, with a Downing Street spokesperson on Monday saying: “We’ve left the EU so we’ll certainly not be going back to the situation we were in.”
“We want to reset our relationship with the EU and get a better deal that supports British people and the British economy”, the official added.
Ms Reeves will tell her European counterparts 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 add.
The FCDO has been contacted for comment.
Source: independent.co.uk
