If Labour wins the election, Rachel Reeves will seek to ‘improve’ UK-EU trading terms

If Labour wins the election, Rachel Reeves will try to remove EU trade barriers through an early investment summit and secure billions in pounds.

In an interview with Reeves , the outlined a bold plan to revisit some of Boris Johnson’s Brexit deal. This included a push for re-alignment with EU regulations in certain areas, such as chemicals, and a better agreement for City of London workers.

She said that a new Labour government will “reset” Britain’s global image.

Her comments indicate that Labour is willing to go beyond what was previously believed in pursuing better UK-EU trading terms. They also address the “adversarial relationship” between Conservatives and Brussels post- – Brexit, as well as abandoning the Tory obsession with regulatory divergence.

Reeves stated, “I do not think anyone voted Leave to protest the fact that chemical regulations are the same in Europe.” “My constituency voted to leave because they were concerned about immigration.”

Reeves, the Labour leader and Sir Keir starmer have been more forthcoming about their plans for Brexit as the polling day nears.

She said Labour was also willing to take risks, and “upset” some people in order to unlock the full potential of the British Economy. She added that she would rather use her political capital to push for growth than to “fight about different taxes”.

The Conservatives warned against a “tax trap” by Labour ahead of the 4th of July election. Reeves, however, insisted that the party can fund its priorities without increasing taxes on the wealthy. He added: “We are not seeking a mandate for people to pay more tax.” We are seeking a mandate for the growth of the economy.

Starmer’s attempt to reopen the “botched” 2020 deal that Johnson had with the EU, would be very complicated. There is no appetite for a renegotiation in Brussels and there has been a long-standing objection to the idea that Britain could “cherry pick” parts of the single market.

Reeves spoke about a “bespoke arrangement” for the chemicals industry. The government is currently in discussions with the industry about a regulatory system that will avoid the extra cost of £2bn associated with registering products under a UK regime.

She reiterated Labour’s red lines, stating that there would be no joining the single market, customs union or a deal for youth mobility. They will restrict the scope of any new EU deal.

Reeves emphasized the importance of seeking a greater mutual recognition of qualifications between the EU and the US, noting the benefits that this would bring to the financial services industry, as well as the service sector.

She said that “the majority of people” in the City did not see Brexit as a good opportunity for their business. Services and financial services, she added, were “pretty excluded” from Johnson’s Brexit plan.

She said Labour’s promise in its manifesto to pursue a mutual-recognition deal with the EU for professional qualifications, as well as a veterinary agreement and improved touring rights to UK artists are “examples”. She said, “That’s certainly not the only thing we can do.”

Reeves accepted the Office for Budget Responsibility’s assessment that Brexit will slash 4 per cent from Britain’s productivity potential.

The shadow chancellor said that she wanted the Labour government to get up and running quickly, taking advantage of the fact the world will be looking at the UK anew after the election.

She said that an investment summit would be one of the next steps taken by a Labour-led government in its first 100 days. The summit would aim to attract foreign investors who were deterred from investing in the UK because of the political instability.

Reeves told the audience that she spoke to a City business leader who said his global chief executive was reluctant to attend a recent UK Investment Summit organized by Prime Minister Rishi Sunderak’s Government.

They said “What’s the use, we are just a little tired of the situation in the UK. Reeves asked, “Do I really have to get to this ?’,”?” This is a moment of real reset to a new way of doing things in government.

She continued: “It is not only inviting businesses to a summit but bringing them right into the heart of government.” I want the Treasury to be more than just a department that deals with taxes and spending, but one that is focused on growth.

Reeves stated that there is “a role” for investment by countries such as China and Saudi Arabia. However, he added that Sunak’s Government was correct to exclude Chinese investment in the future nuclear and broadband projects.