Rachel Reeves says Labour should follow Brexit promise as social gathering splits emerge
EXCLUSIVE: Rachel Reeves said Labour must stick to its manifesto, which ruled out joining the single market and the customs union, and allowing freedom of movement
Rachel Reeves has said Labour must stick to its Brexit red lines amid growing splits over the UK’s relationship with the EU.
The Chancellor said quitting the bloc has driven up prices and clobbered businesses on both sides of the Channel. But she said Labour must stick to its manifesto promises, which ruled out joining the single market and the customs union, and allowing freedom of movement.
It comes after Nick Thomas-Symonds, the minister leading negotiations with Brussels, told The Times that Labour did not have a “mandate” to start talks on its red lines, but added: “It is something we obviously will have to look at.”
Ms Reeves told the Mirror: “Who knows what the future holds but we were elected on a manifesto that said we wouldn’t be joining the single market, customs union and free movement. Call me old fashioned but I think governments should stick to a manifesto on which they were elected. That’s what we are going to do. But within those red lines there is plenty we can do to build stronger relations with our nearest neighbours and trading partners.”
Asked about the cost of Brexit to Britain, she said: “It’s clearly harder for British companies to sell the great goods and services they produce to European countries. Similarly, the cost for European businesses selling into the UK because of the extra bureaucracy and paperwork are higher which means higher prices for people in the shops, and it means fewer jobs and economic activity because those markets that we used to access in Europe are harder to access.”
She said the Government was pushing for closer ties with Europe in areas like energy, farming and food. But in a veiled swipe at those agitating to reverse the Brexit vote, she added: “We have been clear, we won’t be rejoining the EU.”
Labour’s Brexit divisions have been thrust into the spotlight as rivals jostle to replace Keir Starmer. The Prime Minister has sought to reset relations with the EU after years of Brexit battles, but has trod a careful line to avoid restarting the debate around the EU referendum result.
But ex-Health Secretary Wes Streeting, who has said he would enter a leadership race, said leaving the EU was a “catastrophic mistake” last month, and signalled his desire to eventually rejoin the EU.
Ms Reeves spoke to the Mirror as she met carers who will benefit from changes to mileage rules, which clobber low-paid workers forced to use a car. Last month, the Chancellor announced a 10p per mile increase in tax-free mileage rates, up from the current rate of 45p and backdated to April 2026.
“This is the first time it’s happened since 2011 but with a Labour Government and a Labour Chancellor, we are listening again to working people,” she said.
“We were already looking at it but when the conflict in the Middle East broke out, we knew that we needed to more for people who use their car, particularly for work, and that’s why we’ve made this change that will benefit working people in this country up to £1,000 a year.”
The move came as part of a cost of living package, which included a fuel duty freeze and a vehicle tax holiday for lorry drivers. Ms Reeves also promised free summer bus travel for under 16s and VAT cuts on children’s meals and summer attractions, to help families enjoy the summer.
Ministers are also monitoring oil and gas prices carefully as turmoil in the Middle East threatens to send bills rocketing this winter. Ms Reeves is believed to be planning a targeted intervention to help low-income households, rather than a Liz Truss-style universal bills bailout.
Pressed on her plans, she said: “The best policy we have for reducing energy bills is our diplomatic policy. This is not a war we started, this is not a war we joined. I have been pretty clear and vocal on my views on the war. It was a mistake and it is costing people here at home dearly.”
Ms Reeves is also under pressure over a long-delayed plan to inject billions of pounds into Britain’s military. Ministers are wrangling over the defence investment plan, which could be reportedly funded by a raid on capital budgets in areas like transport and energy.
The Chancellor said: “The first duty of any Government is to keep the country safe and I think everybody recognises that and can see – whether it’s the Middle East or Russia’s illegal invasion of Ukraine – that these global events have a real impact here at home and we need to make sure we are properly able to defend ourselves and our allies, because it’s people at home that pay the price for that global insecurity.
“We are going to be publishing the defence investment plan very soon, it is very important that we are clear about how it will be paid for.”
