Thursday, July 16, 2026
Has the Chancellor set the tone for a Burnham administration?
The paper adds that reflecting on her two years in the Treasury, Chancellor Reeves urged Britain to be "much bolder" and go "much further" in pursuing closer ties with the bloc:
Ms Reeves also defended her record, stating the economy had "beaten the odds" under her stewardship and she had proven her credibility in "every decision" since Labour was elected.
She concluded by urging incoming prime minister Andy Burnham to balance "radical change" with economic credibility, a mission she said had defined the Labour government and "I know it will remain the mission of the next."
In a speech at Mansion House, Ms Reeves said: “This government has shown that change, indeed radical change, is possible, and the record of the last two years makes clear that governments can achieve that change only when they combine radicalism with credibility.
“I had to earn that credibility in opposition, and I have proven it in government in every action that I have taken as Chancellor.”
Ms Reeves, who has long been a vocal proponent of deepening post-Brexit ties with Brussels, also said the prize of a stronger relationship with the trading bloc would be “immense”.
She called for a UK-EU summit, which was due this month but thrown into doubt after Sir Keir Starmer announced his resignation, to be rescheduled “as soon as possible” to finalise plans for a youth mobility scheme and other agreements on agrifoods and emissions.
Ms Reeves said: “In the age of insecurity in which we live, the economic strength of our country rests on strategic alliances, and no alliance is more important to us than our relationship with the European Union.
“I think that we need to be much bolder and go much further moving towards a trusted economic and security partnership, where the default is the UK is included not excluded, recognising that in the majority of cases, that will be the approach with the greatest benefits for Britain.”
It comes after a period of strained UK-US relations, which deteriorated after Sir Keir Starmer ruled out British involvement in the Iran war.
The future of our relations with the EU are absolutely crucial if we are to revive our economy and benefit from sustained growth. The Rachel Reeves may not retain her job under a Burnham administration but she has set a challenge for her successor and the new Prime Minister that must be responded to positively.
