Chancellor Rachel Reeves has sparked a Brexit row after describing deeper trading links with the EU as the “biggest prize”.
In a speech at the London School of Economics on Wednesday, Ms Reeves said closer European ties would boost the economy and improve security.
Talking at an event celebrating the 20th anniversary of the economic think tank Bruegel, Ms Reeves said the UK’s future was “intrinsically bound” with Europe.
“The biggest prize is clearly with the EU,” she said.
“The truth is economic gravity is reality. Almost half of our trade is with the European Union. We trade almost as much with the EU as the whole of the rest of the world combined.
“There are three big trading blocs in the world - there’s the US, there’s China and there is Europe. We want to make Europe as strong as possible, and that means not putting up the drawbridge.”
But Shadow Chancellor Sir Mel Stride dismissed the comments, urging the Labour government to “accept their poor choices” have led to economic hardship.
“It’s no secret that Reeves and Starmer have wanted to row back on Brexit since day one,” he said.
“Labour are desperate to blame anyone but themselves for their economic failures.
“Under increasing pressure from their own soft-left colleagues following the Mandelson scandal, Starmer and Reeves would rather point the finger at Brexit than accept their poor choices have been a disaster for our economy.”
Since returning to power, Labour has worked to strengthen trade ties with India, the United States, the EU, and South Korea.
The Chancellor confirmed Britain would align with EU regulatory standards where it serves the national interest, to reduce trade barriers for British businesses.
Prime Minister Sir Keir Starmer has held regular summits with EU officials, established as part of the Government’s so-called “reset” of post-Brexit relations with Brussels.
Ms Reeves said Britain’s security is inseparable from that of its neighbours.
“On defence, we don’t want to create more barriers. We want to be bringing those barriers down,” she said. We want to greater integrate supply chains, not damage them by taking a sort of inward-looking approach.
“I don’t think any Chancellor actually believes we are getting the value for money that we should.
“Things like interoperability, joint procurement, not every country in Europe having different specifications when they’re buying equipment - the potential there is huge.”
It is the latest in a series of moves the Labour Government has taken to establish closer ties with the European Union.
Earlier in February, Britain and the EU announced they were aiming to finalise negotiations on a youth mobility scheme in time for a joint summit later this year.
Cabinet Office minister Nick Thomas-Symonds and European commissioner Maros Sefcovic confirmed both sides would seek to conclude talks in time for the annual event after a meeting in London.
The scheme, which is among several areas under discussion, would make it easier for young people in the UK to work for a period in EU countries and vice versa.
