Chancellor Rachel Reeves has signaled a significant willingness to reshape Brexit-era relationships with Europe, expressing her openness to reconsidering the UK's participation in the Pan-Euro-Mediterranean Convention. Speaking on Sky News’ Sunday Morning with Trevor Phillips, she emphasized her commitment to addressing the challenges faced by British businesses since the exit from the EU.
Reeves stated, “We are absolutely happy to look at those proposals because we know the deal... is not working well enough for small businesses trying to export, and it’s not working well enough for larger businesses either.” This stance aligns with comments from EU trade chief Maros Sefcovic, who suggested Britain’s membership could be on the table, refreshing UK-EU relations.
The Chancellor’s remarks are likely to resonate well within her party, especially among Europhiles who have voiced their concerns over the ramifications of Brexit. She acknowledged the necessity of revising aspects of the previous government’s trade agreements, which have proved inadequate. “We’re grown up enough to admit,” she added, highlighting the need for constructive dialogue.
Security and public safety have also been at the forefront of Reeves' agenda, particularly following the recent tragic events surrounding the Southport inquiry. The Chancellor remarked, “No stone should be left unturned” as the government investigates how Axel Rudakubana was able to commit such brutal acts against young girls last summer. The inquiry, deemed “essential” by Reeves, aims to prevent similar tragedies and provide closure for affected families.
She expressed concern about the Prevent anti-terror program, stressing the need for clarity over what constitutes terrorism. “Just because you don’t have an ideological motive doesn’t mean you can’t be incredibly dangerous,” she said, reflecting on Rudakubana’s previous interactions with the program.
Reeves did not shy away from criticizing previous administrations for their handling of economic policy, arguing they had neglected necessary reforms leading to stagnation. During her latest speeches, she framed her government’s approach as one focused on proactive planning and deregulation to spur growth. “Decisions were either blocked or stalled, and as a result, we haven’t had the economic growth and investment our country deserves,” she asserted.
She plans to propose the release of massive corporate pension surpluses as part of her strategy. Reports indicate these moves could potentially free up between £60 billion and £100 billion for investment, showing her ambition to invigorate the economy as she prepares for key speeches at the World Economic Forum.
During her visit to Davos, Reeves has been campaigning for stronger foreign investment and has continued her calls for infrastructure development domestically, promising reforms aimed at removing regulatory obstacles for construction projects. She mentioned how the government will replace bulky Environmental Impact Assessments with simpler Environmental Outcome Reports to expedite development, stating, “We won’t tolerate blocking for blocking’s sake.”
Looking at aviation, she cautiously supports the idea of a third runway at Heathrow, which has divided opinions within her party. Emphasizing sustainability, she explained, “A lot has changed in aviation... sustainable aviation and economic growth go hand-in-hand.”
Her comments attracted mixed reactions, including skepticism from some fellow Labour members who previously resisted such expansions due to environmental concerns. Energy Secretary Ed Miliband, for example, warned about the potential conflict with the UK’s net zero targets.
Touching on the government’s tax policies, Reeves maintained her stance on ensuring tax accountability for residents, reinforcing the principle of taxation for those who call the UK home. She stated, “It’s the basic principle for me... people who make their home in Britain should pay their taxes here.”
Looking forward, Reeves’ blend of openness to European cooperation, firm domestic policies, and her commitment to accountability indicate her determination to revitalize the UK’s economy. The balancing act she faces will undoubtedly be complex, as she navigates the internal dynamics of her party against the backdrop of public expectations and opposition critiques.