Rachel Reeves has been accused of attempting to reverse Brexit after calling for the United Kingdom to align more closely with European Union regulations. In a major speech, the Chancellor said that closer regulatory alignment would be the 'right course for our country' and argued that leaving the European Union had caused deep economic damage.

She cited studies suggesting that the impact of Brexit could amount to as much as 8 per cent of gross domestic product, though some economists disputed the methodology behind those findings. Reeves said alignment should take place where it serves the national interest, boosts growth and protects security, while ruling out rejoining the single market, the customs union or restoring free movement of labour.

Critics, including figures from Reform UK and Conservative circles, said her proposals risk undermining the sovereignty voters backed in the 2016 referendum. They argued that adopting European Union rules again would amount to surrendering regulatory control and could harm the economy rather than strengthen it.

The speech came amid wider calls from Members of Parliament and Members of the European Parliament for deeper cooperation between the United Kingdom and the European Union, particularly in defence industry coordination. Reeves also acknowledged global uncertainty but resisted calls to accelerate plans to increase defence spending to 3 per cent of national income.