UK Chancellor of the Exchequer Rachel Reeves made a strong case for deepening the UK-EU trade relationship in a major speech on January 16, 2026, calling for a “new chapter of pragmatic, ambitious cooperation” to boost growth and reduce post-Brexit frictions. Speaking at a London business summit, Reeves outlined plans to negotiate a comprehensive economic and trade agreement that goes beyond the existing Trade and Cooperation.
Reeves emphasized that the UK’s economic recovery depends on rebuilding trust and practical ties with its largest trading partner. Moreover, she stated: “We cannot afford to let ideology stand in the way of prosperity. Instead, a deeper, more strategic partnership with the EU is not a betrayal of Brexit; rather, it is the smart, grown-up way to make Brexit work better for British businesses and families. Ultimately, this approach ensures that economic pragmatism takes precedence over political division, therefore strengthening opportunities for growth and stability.”
The speech drew sharp criticism from Conservative MPs and Brexit hardliners, who accused Reeves of surrendering sovereignty” and undermining the 2016 referendum result. Shadow Chancellor Mel Stride called it “a transparent attempt to rejoin the EU through the back door.”
Business groups, including the CBI and British Chambers of Commerce, welcomed the tone and urged the government to move quickly on negotiations. EU officials responded cautiously, noting that any deepened partnership would require “mutual benefits and respect for the existing framework.”
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