Closer relations between the UK and the EU will boost economic growth, Rachel Reeves told European financial leaders on Monday.
In the first speech by a British chancellor to the Eurogroup since Brexit, Reeves will say that resetting relations means “removing trade barriers” and helping “businesses sell in their respective markets”.
Although Labor has ruled out joining the bloc, it has repeatedly said it wants the UK to “deepen its ties” with the EU.
The British Chamber of Commerce (BCC), which represents around 50,000 businesses, said that for the economy to grow “we need to export more”, but that British businesses “face enormous regulatory and administrative constraints “.
At the Eurogroup finance ministers' meeting in Brussels, Reeves will propose building a “mature, commercial relationship” between Britain and the EU.
“I know the last few years have been difficult,” she will tell her European counterparts. “Division and chaos defined the last government's approach to Europe. They will not define ours.”
She will say: “I believe that a closer economic relationship between the UK and the EU is not a zero-sum game. It is about improving our respective growth prospects.”
Liberal Democrat Treasury spokeswoman Daisy Cooper said: “The Conservatives' botched Brexit deal has been a disaster for the economy, with small businesses, farmers and fishermen all caught up in red tape. endless administrative procedures. »
The Conservative Party has been contacted for comment.
Last month, in a highly unusual move, Andrew Bailey, governor of the Bank of England, said the UK needed to “rebuild its relationship” with the EU.
The governor has avoided commenting on Brexit due to the Bank's independence from Westminster policy.
He said: “The impact on trade appears to be more on goods than services… But it highlights why we need to be attentive and welcome opportunities to rebuild relationships while respecting this very important decision by the British people.”
The export of goods, particularly food and agricultural goods, has been affected by new trade barriers. But services, particularly banking, recorded better results than expected.
Labor has said it is determined to implement post-Brexit deals reached under the previous Conservative government.
These include the Windsor Framework which covers trade between the UK and Northern Ireland.
But Reeves will tell finance ministers: “The relationship reset is about doing what is in the best interests of our shared economies and those that depend on them.
“This means removing trade barriers, creating investment opportunities and helping our companies sell in their respective markets.”
Reeves will deliver his speech at a key time for the British and European economies after President-elect Donald Trump threatened to impose tariffs of up to 20% on all goods imported into the United States.
