Rachel Reeves is facing criticism from Conservative figures ahead of a key speech in which she is expected to highlight closer ties with the European Union as part of her strategy to revive economic growth.
The chancellor will deliver the annual Mais Lecture later today, where she is set to argue that stronger regional investment and advancements in artificial intelligence are central to boosting the UK economy.
“In this changing world, Britain is not powerless,” she will say. “We can shape our own future. Our method is stability, investment, and reform – through an active and strategic state.
“Today, I am making three big choices on the greatest growth opportunities for Britain in the decade to come: growth in every part of Britain, AI and innovation, and a deeper relationship with the EU.”
Conservative Criticism Over Brexit Narrative And Economic Policy
However, the Conservatives have rejected the suggestion that Brexit is a key factor behind the UK’s economic struggles, instead placing responsibility on the government’s current economic approach.
Shadow chancellor Sir Mel Stride accused both Reeves and the prime minister of attempting “to row back on Brexit”.
“Labour are desperate to blame anyone but themselves for their economic failures,” he said. “Under increasing pressure, having mismanaged the economy, Reeves would rather point the finger at Brexit than accept their poor choices have been a disaster for our economy.”
The remarks come as the UK continues to experience sluggish economic performance. Latest figures show no growth in January, while output increased by just 0.2% over the preceding three months.
The Office for Budget Responsibility recently revised down its growth forecast for 2026, although projections for 2027 and 2028 have been slightly improved.
At the same time, ministers are dealing with wider global pressures, including the economic impact of the ongoing Iran conflict, which could drive up energy costs and inflation if prolonged.
Reeves Pushes AI Investment And Deeper EU Links To Drive Growth
Reeves has consistently argued that closer engagement with the EU could support economic recovery. She discussed the issue with Ireland’s finance minister, Simon Harris, earlier this week.
Alongside this, the chancellor is expected to position artificial intelligence as a cornerstone of future growth, stressing the need for the UK to take a leading role.
“AI is the defining technology of our era,” she will say. “The choice is this: we can bury our heads in the sand and leave it to other countries – whose values may differ from ours – to shape and own this technology.
“We can leave it to the market alone, and let the balance of risk and reward be determined by a super-wealthy few. Or we can chart our own course.”
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Her plans include a commitment of £500m to support high-potential AI firms, alongside £1bn earmarked for the development of commercial-scale quantum computing.
Reeves has also set out an ambition for the UK to achieve the fastest rate of AI adoption among G7 nations.
The Mais Lecture, hosted by City St George’s, University of London, is regarded as one of the City’s leading events in banking and finance. Reeves previously delivered the lecture in 2024 while serving as shadow chancellor, joining a list of past speakers that includes Rishi Sunak, George Osborne and Mark Carney.
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