Shadow Chancellor Rachel Reeves has said that a new Labour government will seek to renegotiate aspects of Boris Johnson’s Brexit deal.
Reeves highlighted that she would look to get better terms in crucial areas like financial services and chemicals trade, which were largely left out of 2021’s Trade and Co-operation Agreement (TCA).
“We would look to improve our trading relationship with Europe, and do trade deals around the world,” Reeves told the Financial Times.
Reeves criticised the Conservatives’ “adversarial” approach to EU relations, suggesting that a Labour government would seek closer alignment on many regulatory issues.
“I don’t think anyone voted Leave because they were not happy that chemicals regulations were the same across Europe,” she said.
The Shadow Chancellor signalled her ambition to make life easier for the UK’s professional and financial services sector. “The majority of people in the City have not regarded Brexit as being a great opportunity for their businesses,” she said.
The TCA came into force in 2021 when the UK officially left the EU. Although the agreement guaranteed tariff-free trade, it did not prevent the introduction of non-tariff barriers.
A number of business groups have called on the government to seek closer ties with the EU when the agreement comes up for review in 2026.
In its manifesto, Labour promised to “tear down unnecessary barriers to trade,” while ruling out a return to the single market or customs union.
The document contained specific ambitions to negotiate a new veterinary agreement, helping touring artists and to secure mutual recognition on professional qualifications.
However, Labour may face difficulties because many EU officials are reluctant to let Britain “cherry-pick” access to particular sectors.
Reeves also vowed that Labour would “reset” Britain’s global image in a bid to attract international investment. Labour will hold an investment summit in the first 100 days of a new government to lure foreign investors who had been deterred by political instability.