UK’s Labour wants improved EU trade relations: FT

LONDON — Britain’s Labour, expected to win power next month, would revisit the Brexit deal to improve EU trade links, the Financial Times reported a key party figure as saying Monday.

Finance spokesperson Rachel Reeves, however, stressed that Labour would not revisit rejoining the bloc’s single market or customs union, nor would it consider any deal on freedom of movement or youth mobility.

She is on course to step up to the role of UK government finance minister, should the main opposition defeat Prime Minister Rishi Sunak’s governing Conservatives in the general election on July 4.

“We would look to improve our trading relationship with Europe, and do trade deals around the world,” Reeves said in an interview with the FT Business Daily.

READ: Britain and EU unlikely to change Brexit deal much, despite issues – report

She indicated that Labour would seek closer alignment with European Union rules in areas including the chemicals and the financial services sectors.

Reeves pointed to a “bespoke” regulatory arrangement for the chemicals industry aimed at avoiding £2 billion ($2.5 billion) of extra costs.

Britain left the bloc at the start of 2021 after Brexiteers narrowly won a shock 2016 referendum on a platform of “taking back control” from Brussels, particularly over immigration.

Yet Brexit did not deliver the promised “sunlit uplands” of economic prosperity and instead sparked trade chaos, labour shortages and rising company costs that fuelled inflation.