Rachel Reeves said Britain should pursue a closer economic and security partnership with the EU
Rachel Reeves has declared that Britain’s partnership with the European Union is now the country’s most important international alliance.
She told City leaders that the UK’s future prosperity depends on deepening ties with Brussels.
Addressing the annual Mansion House dinner on Tuesday evening, the Chancellor 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.”
She argued that Britain should take a different approach to its post‑Brexit relationship with the bloc, saying the UK should be “included not excluded” from EU arrangements as standard.
Her remarks come as the Government seeks to strengthen relations with Brussels through agreements on trade and veterinary standards.
Ms Reeves repeated her longstanding criticism of Brexit, telling attendees: “I have always been clear about the damage that Brexit did to our economy.
“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 that the UK should be “much bolder and go much further, moving towards a trusted economic and security partnership”.
“The prize for Britain of a closer relationship with Europe is immense,” she said.
Her comments are likely to be noted in Washington, where relations have been strained following Britain’s decision not to support Donald Trump’s proposed military intervention in Iran.
Ms Reeves also used the speech to emphasise the need for economic credibility alongside reform.
“Radical change is only possible if it comes with credibility,” she said.
“In the past, radical Governments without credibility have ultimately failed to win the trust necessary to deliver their agenda.”
She highlighted the Government’s record on devolution, saying Labour had transferred greater powers to regional leaders than previous administrations.
“This Government has done more to devolve power in the last two years than its predecessors did over the last two decades,” she said.
Her remarks followed a meeting with regional mayors in Darlington on Monday as the Government continues its programme of devolving powers across England.
The speech also coincided with a diplomatic milestone for Sir Keir Starmer, who became the first British prime minister to receive France’s Légion d’honneur from President Emmanuel Macron.
Closer cooperation with the EU has been a central pillar of the Government’s foreign and economic strategy, with agreements on trade and veterinary standards secured since taking office.
Ms Reeves’ speech reinforced that direction, arguing that stronger ties with European partners would bolster Britain’s economic resilience and national security.
She told business leaders that strategic alliances would become increasingly important in an uncertain global environment, with the UK’s relationship with the EU forming the cornerstone of that approach.
