Rachel Reeves has been accused of trying to “row back on Brexit”, as the chancellor prepares to set out how “deeper” ties with the EU will help drive economic growth.
Ms Reeves will deliver the annual Mais lecture today, where she will declare regional investment and AI as being similarly vital for getting the economy growing.
“In this changing world, Britain is not powerless,” she will say. “We can shape our own future. Our method is stability, investment, and reform – through an active and strategic state.
“Today, I am making three big choices on the greatest growth opportunities for Britain in the decade to come: growth in every part of Britain, AI and innovation, and a deeper relationship with the EU.”
But the Conservatives have said it’s her economic policies, not the departure from the EU that they oversaw, that’s caused the economy to stagnate.
Shadow chancellor Sir Mel Stride accused the chancellor and prime minister of wanting “to row back on Brexit”.
“Labour are desperate to blame anyone but themselves for their economic failures,” he added.
“Under increasing pressure, having mismanaged the economy, Reeves would rather point the finger at Brexit than accept their poor choices have been a disaster for our economy.”
Ms Reeves’s lecture comes following anaemic growth figures. The economy didn’t grow at all in January, and only by 0.2% in the three months prior.
The Office for Budget Responsibility (OBR) downgraded its growth forecast for 2026 a fortnight ago – although it is forecast to grow slightly quicker than previously expected in 2027 and 2028.
Ministers are also grappling with the economic consequences of the Iran war, which threatens to push up energy prices and inflation if the conflict continues for much longer.
Ms Reeves has regularly spoken about the need for closer ties with the EU. She discussed the prospect with Ireland’s finance minister, Simon Harris, on Monday.
But on AI, the chancellor will say the UK must “chart our own course”.
Reeves: We face a choice on AI
“AI is the defining technology of our era,” Ms Reeves will say. “The choice is this: we can bury our heads in the sand and leave it to other countries – whose values may differ from ours – to shape and own this technology.
“We can leave it to the market alone, and let the balance of risk and reward be determined by a super-wealthy few. Or we can chart our own course.”
She wants the UK to achieve the fastest adoption of AI in the G7 group of wealthy nations.
The chancellor will commit £500m to back the most promising AI companies in the UK – plus a £1bn investment in commercial-scale quantum computers.
Read more: What’s up with quantum computers?
The annual Mais lecture is the City of London’s foremost banking and finance event, hosted by City St George’s University.
Ms Reeves previously gave the lecture while shadow chancellor in 2024, while other recent speakers have included Rishi Sunak, George Osbourne, Mark Carney, and Odile Renaud-Basso, President of the European Bank for Reconstruction and Development.
