Rachel Reeves has delivered her most forceful criticism of Brexit to date, promising to “break down trade barriers” with the European Union that she says are weighing on Britain’s economic performance.
The chancellor’s remarks came as she revealed downgraded growth expectations from the Office for Budget Responsibility (OBR). The watchdog now expects the economy to expand more slowly this year than previously predicted.
At the Budget last November, the OBR forecast growth of 1.4% for 2026. However, in her Spring Statement on Wednesday afternoon, Reeves confirmed the projection has been revised down to 1.1%, dealing a setback to the government’s economic outlook.
UK Economic Forecast Downgraded In Spring Statement
Alongside the weaker growth outlook, unemployment is now expected to be slightly higher this year than earlier estimates suggested. Reeves noted, however, that inflation, borrowing and public debt are all forecast to come in lower than the OBR had previously anticipated.
The chancellor said she will outline a broader strategy to stimulate growth in a major speech later this month.
She said: “I will set out three major choices that will determine the course of our economy into the future.
“To go further in strengthening our global relationships, breaking down trade barriers and deepening alliances with our European partners for a more secure and connected economy.”
Reeves Targets Conservatives Over Brexit Stance
In a pointed political attack, Reeves criticised the Conservatives for backing Britain’s departure from the European Union.
She said: “They opposed economic responsibility and backed Liz Truss. Wrong. They opposed closer ties to Europe and backed Brexit. Wrong. “They opposed cuts in child poverty and want to repeat austerity. Wrong values, wrong economics, they are just plain wrong.”
Her comments highlight growing willingness within Labour Party to openly challenge Brexit’s economic impact, despite the policy’s past support among many of the party’s traditional voters in the 2016 referendum.
Pro-EU Campaigners Welcome Tougher Tone
Reacting to the speech, Dr Mike Galsworthy, chair of the European Movement UK, said the intervention could mark a turning point.
“This decade has seen the UK economy on life-support, with some of the worst growth in a century. “There is an obvious treatment right on our doorstep, but the government has so far ignored it.
“Rachel Reeves’s comments today in her Spring Statement perhaps signal that they are finally ready to break down the barriers that Brexit imposed on UK businesses, and take real steps to align with our closest trading partner.”
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He added: “The UK-EU reset cannot just be a summit photo, it must mean market access. The UK’s economic woes are the true cost of a bad deal. It is time to stop managing decline and start rebuilding a trading relationship that actually works for British industry.”
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