Mon, 20 Oct 2025

Mon, 20 Oct 2025 Chancellor says Brexit deal caused long-term damage to economy

Rachel Reeves made the comments about the 2020 deal at a key meeting of the world's leading finance ministers and central bankers.
UK Chancellor Rachel Reeves highlighted the long-term damage done to the UK economy by the 2020 Brexit deal in a speech at an international economic committee meeting. She stated that the UK's productivity challenge has been worsened by leaving the EU and quoted an Office for Budget Responsibility calculation of a 4% long-term hit relative to staying in the EU. The UK is seeking stronger trade ties as part of this acknowledgment. This marks a shift in Labour's stance, which had previously avoided emphasizing economic downsides from Brexit. The issue is expected to be a key part of the government's argument ahead of the Budget on November 26, where tax rises are anticipated due to a downgrade in long-term UK productivity. External economists have varying views on the impact of Brexit, citing factors such as a fall in investment and an underperformance on goods trade. The issue is sensitive given ongoing Brexit "reset" negotiations with the EU, which include scrapping post-Brexit checks on food and farm trade.
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