Chancellor Rachel Reeves has become the third senior minister this month to speak openly about the damage Brexit has done to Britain’s economy, signalling a decisive shift in tone from a government that has long avoided the subject.
In an interview ahead of November’s Budget, Reeves said that Brexit, alongside years of austerity and the fallout from Liz Truss’s mini-budget, has “weighed heavily on the UK economy.” She confirmed that the impact of leaving the European Union has been “severe and long lasting” and that the Office for Budget Responsibility has consistently overestimated productivity growth since the referendum.
Economists now expect a £50 billion shortfall in the public finances. Reeves said she will not “duck those challenges” as she prepares for tax and spending decisions later this month, but made clear that Brexit remains a core part of the problem.
Her remarks follow Keir Starmer’s speech at Labour Conference and Wes Streeting’s comments last week at the Cliveden Literary Festival, both of which broke years of political silence around Brexit’s economic consequences. Together they reflect a growing recognition inside government that Britain cannot rebuild its economy without facing the truth about what went wrong.
This acknowledgment matters. Honesty about Brexit’s costs is not a political risk; it is a national responsibility. Britain’s recovery depends on restoring cooperation with Europe, repairing trade, and rebuilding the trust that decades of partnership once delivered.