Brexit to blame for Rachel Reeves’ tax hikes, Labour MP claims

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A Labour MP has blamed Brexit for Rachel Reeves’ tax-hiking Budget last October, adding that he hopes Britain rejoins the European Union in his lifetime.

Andrew Lewin said leaving the EU has left Britain £40bn poorer per year, adding that “were we still members… there would not have been a single tax rise”.

The Welwyn Hatfield MP cited research showing that 16,000 smaller businesses have stopped trading with the EU since Brexit.

And, speaking at a fringe event at Labour’s conference on the future of Britain’s relationship with the bloc, he said: “Economists agree we are £40bn poorer as a country because of the Brexit deal.

“And what does that practically mean? Wind back the clocks 11 months to last year’s Budget, where the chancellor had to raise taxes to the tune of about £40bn.

“In a scenario where we are still members of the European Union, there would not have been a single tax rise, because we would have that growing productivity as part of the biggest democratic trading bloc in the world.”

Mr Lewin also blamed Brexit for soaring food prices in shops, arguing that barriers to trade are pushing up inflation.

The Welwyn Hatfield MP also said Brexit was to blame for soaring food prices in shops

The Welwyn Hatfield MP also said Brexit was to blame for soaring food prices in shops (UK Parliament)

And, after Andy Burnham called for Britain to rejoin the EU in his lifetime, Mr Lewin said: “I am younger than Andy Burnham, so definitely in my lifetime.”

But he said the chaos of the Brexit years has limited the EU’s appetite to welcome Britain back into the bloc.

“It is really important that the conversation today is about incremental but significant progress… I don’t think for a minute that the EU, who were convulsed for years with our conversations about whether we wanted to leave and on what terms, are also in a position that they want to have a conversation with the UK about rejoining.”

Greater Manchester mayor Mr Burnham called on Monday night for Labour to “call out” the financial “disaster” of Britain’s departure from the bloc and said he wanted to see Britain rejoin.

Keir Starmer with Ursula von der Leyen at the European Commission headquarters in Belgium

Keir Starmer with Ursula von der Leyen at the European Commission headquarters in Belgium (PA)

“I do think you call out what has put the country in this position,” he said. “The growth is not there as it once was.”

He added: “Long term, I’m going to be honest, I’m going to say it… I hope in my lifetime I see this country rejoin.”

On Tuesday, Best for Britain’s chief executive Naomi Smith presented polling showing that three in five voters now believe Brexit has been more of a failure than a success, pointing to the damage to the economy as the main problem.

She said: “We asked them who they blame for all that, and they say Boris Johnson, David Cameron and, of course, Nigel Farage.”