Rachel Reeves is to claim that a ‘deeper relationship’ with Europe is one of the UK’s biggest economic opportunities.
The Chancellor will rank closer ties with Brussels alongside Artificial Intelligence and regional growth as the three best ways to boost the economy over the next decade.
In a major speech, she is expected to say that greater access to the single market would protect Britain from global shocks such as the war in the Middle East, and call for more alignment with EU rules.
It comes after she revealed in an interview that she preferred European Commission President Ursula von der Leyen to Donald Trump, saying in an interview: ‘I believe that our future is closely intertwined with that of Europe.’
Ms Reeves is expected to say in the Mais lecture on Tuesday afternoon: ‘In this changing world, Britain is not powerless. We can shape our own future. Our method is stability, investment and reform – through an active and strategic state.
‘Today, I am making three big choices on the greatest growth opportunities for Britain in the decade to come: growth in every part of Britain, AI and innovation, and a deeper relationship with the EU.
‘Our plan is clear. To build for growth, to champion innovation, and to make Britain the place where the industries of the future are created.’
But she was accused of trying to blame Brexit for Labour’s own handling of the economy, which is currently flatlining while unemployment is at its highest level for almost five years.
Chancellor of the Exchequer Rachel Reeves pictured at a Downing Street meeting last week
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Shadow Chancellor Sir Mel Stride said: ‘It’s no secret that Reeves and Starmer have wanted to row back on Brexit since day one – and we can expect to hear more detail on Labour’s plan to drag us closer to the EU at the Chancellor’s speech today.
‘Labour are desperate to blame anyone but themselves for their economic failures. Under increasing pressure having mismanaged the economy, Reeves would rather point the finger at Brexit than accept their poor choices have been a disaster for our economy.’
And Reform’s pick for Chancellor, Robert Jenrick, said: ‘The idea that Labour’s EU reset is going to bring back jobs and leave people with more money in their pocket is for the birds.
‘Rachel Reeves is out of ideas and has been reduced to trying to dig up failed policies from the past. She should start fixing the mess she made, beginning by scrapping her ridiculous plan to raise fuel duty.’
While Ms Reeves is delivering her speech in the City of London, other ministers are in Brussels trying to finalise a deal that will force the UK to align with the EU’s food and drink standards.
However plans for a youth exchange scheme, which she backs, are on hold after the EU demanded that those coming to British universities pay the same tuition fees as UK students.
On Monday Finland’s President, speaking at the London School of Economics, said Brexit was ‘obviously a huge mistake’ and ‘one of the biggest that we’ve seen in recent history’.
