Chancellor’s UK-EU ‘reset’ is a promising start, but not enough – London Business News | Londonlovesbusiness.com

Rachel Reeves’ pledge on Monday to reset the UK’s post-Brexit relationship with the European Union is a welcomed first step.

In the first speech by a UK chancellor to eurozone finance ministers since 2020, her message of putting division and chaos behind in favour of a “business-like” approach speaks to the need for a more pragmatic, growth-driven future.

It’s a bold signal that the UK government is ready to work more cooperatively with the EU and unlock shared economic potential.

However, while her words are promising, they fall short of what is needed to rebuild the UK-EU relationship into one that delivers tangible benefits for business leaders.

The “economic reset” that Reeves speaks of so frequently must go beyond mere gestures. It requires action that directly addresses the challenges businesses are still facing, three years after the UK left the EU.

The UK-EU relationship, as Reeves rightly points out, has been marred by uncertainty and a fractured framework. Businesses that once thrived in a seamless trade environment now face constant disruptions, from new customs checks to complex tariffs.

The regulatory burdens on UK firms have mounted, and the economic landscape has shifted, leaving business leaders to deal with unpredictable costs, delays, and operational challenges.

This has, undeniably, slowed growth and undermined the competitive edge that the UK once held in Europe.

For business leaders, it’s not just about symbolism; it’s about cutting through the red tape, addressing the deep-rooted barriers to growth, and easing the regulatory burdens that continue to stifle productivity.

These issues must be addressed head-on if the UK is to thrive in the post-Brexit era.

Trade has been hindered by new customs checks, labour shortages have affected key sectors, and there’s still a general sense of disconnection between UK firms and their EU counterparts.

There’s no denying that the UK’s departure from the EU has brought about substantial logistical challenges. The focus must now shift to providing businesses with the tools they need to flourish despite these challenges.

In my experience, business leaders across the UK are making it clear: they need more. They need clearer rules and a consistent policy framework that enables growth, reduces friction, and enhances cross-border collaboration.

A comprehensive trade deal that goes beyond tariffs is essential – businesses need to feel secure in their operations across borders without facing unnecessary bureaucratic hurdles. This means that, for many, the current status quo of UK-EU relations is simply not enough.

It’s a fleeting start, not a long-term solution.

Reeves’ promise of closer ties is encouraging, but without real policy changes and substantial negotiations to remove the obstacles to growth, these words could be rendered hollow. The focus must move beyond dialogue and into substantive, actionable changes.

As the UK moves into this new phase of its relationship with the EU, business leaders are demanding clarity and long-term solutions, not just warm words in a speech.

The market is anxious for resolution and action, not just the promise of future talks.

As Reeves continues to champion a “reset,” she must remember that what the UK needs most is not just a “signal of commitment,” but concrete actions that deliver economic stability and growth.

A genuine effort to rebuild trust and cooperation with the EU will require her to push harder for structural changes in trade policies, regulatory alignment, and smoother logistical frameworks – changes that will directly impact businesses striving to operate on the international stage.

The time for symbolic gestures has passed. Business leaders are calling for tangible reforms that will allow them to thrive in an interconnected European market.

They want a UK-EU relationship that drives growth, strengthens trade, and helps businesses reach their full potential.

Reeves must seize this moment to take bolder steps and put the UK on a path that truly reflects the economic potential of a reinvigorated, collaborative relationship with the EU. Anything less will fail to deliver the results that businesses across Britain and the rest of Europe so urgently need.

There is a clear opportunity here. One that has been delayed for far too long.