𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

Rachel Reeves demanded closer ties with the EU in what is likely to be her final major speech as Chancellor. She insisted that the UK has “no alliance” more important than its relationship with Brussels and called for Britain to be “much bolder” and go “much further”.

Ms Reeves argued that the prize of a stronger relationship with the bloc would be “immense”. She called for a UK-EU summit, which was due this month but thrown into doubt after Sir Keir Starmer announced his resignation, to be rescheduled “as soon as possible” to finalise plans for a youth mobility scheme and other agreements on agrifoods and emissions.

In a speech at Mansion House, Ms Reeves said: “In the age of insecurity in which we live, the economic strength of our country rests on strategic alliances, and no alliance is more important to us than our relationship with the European Union.

“I think that we need to be much bolder and go much further moving towards a trusted economic and security partnership, where the default is the UK is included not excluded, recognising that in the majority of cases, that will be the approach with the greatest benefits for Britain.”

Ms Reeves also defended her record, insisting the economy had “beaten the odds” under her stewardship.

She said: “Because of the choices I have made, I’m proud to report that the British economy is strong.

“At the start of this year, Britain had the fastest economic growth in the G7. Last year, borrowing fell from 5.2% to 4.3%, its lowest level in six years.

“Investment is up, productivity is up, and wages are up too.

“Waiting lists are falling faster than at any time in the last 17 years and half-a-million children will be lifted out of poverty by the end of this Parliament.”

She urged prime minister-in-waiting Andy Burnham to balance “radical change” with economic credibility, saying this had been the mission of the Labour Government and “I know it will remain the mission of the next.”

She said: “This Government has shown that change, indeed radical change, is possible, and the record of the last two years makes clear that governments can achieve that change only when they combine radicalism with credibility.

“I had to earn that credibility in opposition, and I have proven it in Government in every action that I have taken as Chancellor.”

It comes as Ms Reeves is expected to be replaced by Mr Burnham when he enters 10 Downing Street next Monday but he has not yet confirmed any Cabinet appointments.