Rachel Reeves has been accused of a “Brexit betrayal” after declaring that Britain’s future is “inextricably bound with that of Europe”.
Last night, the Chancellor claimed closer relations with Brussels were the “biggest prize” for the UK economy – and revealed Labour was ready give away powers to the EU in order to secure a better deal.
“I think further integration will require further alignment – but I’m up for that. Keir Starmer’s Government is up for that,” she said.
“I strongly believe that Britain’s future is inextricably bound with that of Europe, and that is for economic reasons… but also reasons of security, resilience and defence. The truth is, economic gravity is reality, and almost half of our trade is with the European Union. We trade almost as much with the EU as the whole of the rest of the world combined.”
Her remarks represent a marked reversal, just three weeks ago, she told Davos delegates that Britain could not “go back in time” in its relationship with the EU.
They have raised fears that she and the PM may be veering to the left to cool an emboldened Cabinet after a week of leadership challenges and scandal.
Reform UK’s Suella Braverman said: “The great Brexit betrayal is underway. Fresh from kowtowing to communist China, the Government are exploiting their own chaos in No10 to quietly pull us back into the European Union.
“We will once again become a rule taker, not a rule maker.”
The Chancellor said ‘Britain’s future is bound with Europe’
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Downing Street had previously rejected the prospect of rejoining an EU customs union after an official from the bloc said Brussels would have an “open mind” to discussing it.
European Commissioner for Finance Valdis Dombrovskis said the bloc was “ready to engage” if the UK wanted to explore such a move.
He and European commissioner Maros Sefcovic met EU relations minister Nick Thomas-Symonds and Chancellor Rachel Reeves in London on Monday.
Asked afterwards whether Brussels would welcome talks on Britain rejoining the customs union, Mr Dombrovskis told the BBC: “I cannot jump to conclusions, but I can say that we are ready to engage with an open mind and seek those areas of co-operation.”
Mr Dombrovskis welcomed the talks, saying the bloc was ‘ready to engage’
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However, Downing Street was quick to downplay the idea, saying Sir Keir Starmer’s government would be sticking to its red lines as it deepens ties with the EU.
The Prime Minister’s official spokesman said: “We will not be rejoining the customs union, the single market, or returning to freedom of movement.
“Those are our red lines as per the government’s manifesto.
“We do want a closer economic partnership with the EU, but rejoining the customs union would unpick important trade agreements we’ve reached, including our deals with the US and India.”
Daisy Cooper has called for Britain to rejoin the Customs Union
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Opposition parties have also been calling for Sir Keir Starmer to rejoin the customs union and forge closer ties with the European Union.
Liberal Democrat Deputy Leader Daisy Cooper suggested “botched Brexit trade barriers” were acting as a “stranglehold on British businesses”.
She added: “[The] Liberal Democrats have been clear that negotiating a new customs union with the EU is the fastest way to jumpstart the UK economy.”
Green Party Commons Leader Ellie Chowns preciously said: “The Green Party is very clear that people and planet would benefit from much closer relationships between our country and the European Union. We will continue to press the Labour government to be braver and bolder in overcoming the negative impacts of Brexit.”