Rachel Reeves calls for UK re‑entry to EU, says Brexit made Britain poorer

Rachel Reeves has said she believes Britain should rejoin the European Union as she warned Brexit has made the country “poorer, weaker and less secure”.

Reeves’s column was timed to coincide with the forthcoming UK‑EU summit on 20 November, where the government will negotiate a youth free‑movement deal and discuss entry into the SAFE defence partnership. The chancellor wrote that “no one in the Treasury ever doubted where my instincts were” and that the debate about the UK’s future in Europe is “incumbent on supporters of our re‑entry to make the argument, demonstrate tangible benefits and to get the next steps right.”

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Her call follows a statement by Manchester mayor Andy Burnham, who has opened a “conversation about the impact of Brexit” and promised to reveal proposals for closer EU ties at the summit. The mayor’s remarks have already nudged public sentiment toward a reversal of the 2016 vote, a trend supported by an Independent poll showing 56% of respondents now favour re‑joining, up four percentage points on a similar survey in May.

Reeves is not alone in blaming Brexit for Britain’s economic woes. A recent HuffPost UK analysis, commissioned by the Lib Dems, argues that the UK is between 6% and 8% smaller than it would have been without Brexit, translating into £65 billion to £90 billion less tax revenue in 2024/25 and an average Brit being £2,700 to £3,700 worse off. The report cites a House of Commons library study that attributes a £250 million a day loss in 2025 alone.

In contrast, Briefings For Britain counters that the UK economy expanded by 12% from the referendum in June 2016 to mid‑2025, outperforming Germany, France, Italy and Japan and matching all G7 countries except the United States and Canada. The review argues that growth since leaving the EU single market in January 2021 has been even stronger, a rebound from COVID‑19 that has made the UK the fastest‑growing G7 economy in that period. It also points out that the Office for Budget Responsibility’s forecasted 4% GDP impact was based on a mix of studies, many of which relied on a “dynamic productivity” assumption that the review says does not apply to advanced economies.

Beyond macro‑economic figures, public sentiment about the everyday effects of Brexit is shifting. An Ipsos survey shows that 45% of Britons now believe Brexit has made daily life worse, a rise from three in ten in June 2021. The same poll notes that 17% say it has made life better, up from one in ten. The survey also finds that 73% of those under 35 want to re‑join the bloc, and that 72% of the public think it is important for Britain to maintain a close relationship with the EU.

Meanwhile, the City of London has seen its productivity and tax take suffer since the 2016 vote. The Guardian reports that the OBR has cut its productivity forecast from 1.25% to 0.9% by 2029‑30, a change that could add £21 billion to borrowing. The piece cites former Morgan Stanley director Rob Rooney, who notes that more than £1 trillion of assets have moved out of the UK, and that the City’s output has collapsed relative to other EU financial hubs.

Reeves’s remarks arrive at a time of heightened public scrutiny over the UK’s future. The Independent piece notes that Reeves is one of the most prominent Labour figures to openly advocate re‑entry, a stance that could clash with the party’s manifesto pledge to honour the 2016 vote.

Timeline of Key Events

• June 2016 – Brexit referendum.
• January 2021 – End of transition period.
• 2025 – House of Commons library study on lost tax revenue.
• November 2026 – UK‑EU summit on 20 November.
• Early 2027 – Next UK budget.

As the debate continues, the public’s view of the EU remains complex. Ipsos finds that while 49% think Britain and the EU will unlikely achieve a satisfactory outcome, 41% remain hopeful. The issue of immigration, particularly illegal crossings across the English Channel, remains a flashpoint, with 22% believing UK and EU interests align, 43% seeing them at odds.