Rachel Reeves has been accused of trying to “backfire on Brexit” as the Chancellor prepares to set out how a “deeper” relationship with the EU would help boost economic growth.
Ms Reeves will deliver the annual MICE lecture today, where she will announce regional investment. Aye, it is equally important to take the economy forward.
“In this changing world, Britain is not powerless,” she will say. “We can shape our future. Our way is sustainability, investment and reform – through a proactive and strategic state.”
“Today, I am making three big choices on the biggest growth opportunities for Britain over the coming decade: growth in every part of the UK, AI and innovation, and a more profound relationship with the EU.”
But the Conservatives say his economic policies, not the EU break he oversaw, caused the economy’s stability.
Shadow Chancellor Sir Mel Stride accused the Chancellor and the Prime Minister of wanting to “backtrack on Brexit”.
“Labour are desperate to blame anyone but themselves for their economic failures,” he said.
“Under increasing pressure to mismanage the economy, Reeves prefers to blame Brexit rather than acknowledge that his poor choices have been detrimental to our economy.”
Ms Reeves’s lecture comes after anaemic growth figures. The economy was flat in January and grew just 0.2% in the prior three months.
The Office for Budget Responsibility (OBR) lowered its growth forecast. A fortnight earlier, in 2026, it was forecast to grow slightly faster than before in 2027 and 2028.
Ministers are also struggling with the economic consequences of the Iran war, which could lead to increased energy prices and inflation if the conflict continues for a longer period.
‘Definitely not good for the British economy’: Reeves on Iran war
Ms Reeves has regularly spoken about the need for closer ties with the EU. He discussed the possibility with Ireland’s Finance Minister Simon Harris on Monday.
But on AI, the Chancellor will say the UK will have to “chart its own course”.
Reeves: We face a choice on AI
“AI is the defining technology of our era,” Ms Reeves will say. “The alternative is to ignore it and allow other countries, whose values may differ from ours, to shape and control this technology.”
“We can allow the market to dictate the balance of risk and reward, leaving it in the hands of a few ultra-rich individuals.” Or we can go our own way.”
She wants the UK to be the fastest adopter of AI among the G7 group of rich countries.
The Chancellor will commit £500 million to support the most promising AI companies in the UK – as well as invest £1 billion in commercial-scale quantum computers.
Read more: What’s happening with quantum computers?
The annual Mies Lecture is the most prominent banking and finance event in the City of London, organised by City St George’s University.
Ms Reeves previously gave the lecture in 2024 while she was Shadow Chancellor, while other recent speakers have included Rishi Sunak, George Osborne, Mark Carney and Odile Renaud-Basso, president of the European Bank for Reconstruction and Development.
