Rishi Sunak blasts Rachel Reeves' Brexit plan as the 'worst of all worlds' - after Labour's Shadow Chancellor vowed to forge closer ties with Brussels

Rachel Reeves' plan to reset the Brexit deal has been condemned as the 'worst of all worlds'.

Rishi Sunak led criticism of the Shadow Chancellor after she vowed to forge closer ties with the European Union if Labour wins the Election.

The Prime Minister accused the party of trying to reverse Brexit after Ms Reeves said she wanted to improve parts of Boris Johnson's deal.

Senior Tories even compared her proposals to Theresa May's failed deal, warning they could spell disaster for the party.

Labour's proposals could include seeking closer alignment with chemical sector rules and a revised deal for workers in the City of London, as well as mutual recognition of professional qualifications.

She told the Financial Times: 'I don't think anyone voted Leave because they were not happy that chemicals regulations were the same across Europe. When my constituency voted Leave, it was purely because of immigration.

'We would look to improve our trading relationship with Europe, and do trade deals around the world.'

But last night senior Tories accused Sir Keir Starmer and Ms Reeves – both ardent Remainers during the 2016 referendum – of taking Britain back into the bloc by stealth.

The PM said: '[Labour's plan] is the worst of all worlds. Brexit Britain has now overtaken the Netherlands, France, and Japan to become the fourth biggest exporter in the world. 

'In the first quarter of this year, we grew faster than every other major economy including the United States.

'That is a very clear choice at the election if you want someone who's going to grow the economy as we are, take advantage of Brexit and the freedoms that it gives us – it's only us that going to deliver that.'

Ms Reeves insisted Labour would not cross its red lines on Britain's relationship with the EU, and ruled out rejoining the bloc's single market or customs union. She also denied there would be a return to freedom of movement or youth mobility.

But former Cabinet minister David Jones compared her proposals to Ms May's, warning: 'This is an extraordinary statement by Rachel Reeves. Theresa May's Brexit 'deal' was resoundingly rejected by Parliament and by the people.

'It resulted in the Conservative Party gaining only 9 per cent of the vote in the last European elections and the dismissal of Mrs May herself.

'If Labour want to gain and remain in power, they should respect the judgment of the British people and embrace Brexit and the huge opportunities it presents for the UK.'

Northern Ireland Secretary Chris Heaton-Harris said: 'Given the keys to No 10, [Sir Keir] would take us back to square one by sneakily trying to take us back into Brussels via the backdoor. 

'We have left the European Union and now should be the time to make the best of that decision. It's only the Conservative Party who will guarantee our place outside the European Union with a clear plan.'

Backbencher Greg Smith said: 'Labour need to make up their minds what on earth they do stand for. They are giving mixed messages around endless U-turns and dithering. They are asking people to vote for them without a single clear policy, on Brexit or anything else.'

The Labour leadership has avoided talking about Brexit for much of the campaign due to Conservative attack lines on their pro-Remain past.

Since he became leader Sir Keir has sought to revisit Mr Johnson's Brexit deal, which was signed in 2019, but said he respects the public's decision to leave the bloc. 

He told port workers in Southampton yesterday: 'We took a decision to leave the EU, so we are not going to go back in. But we think the deal we've got is botched. It's not good enough, and I think many businesses would say 'we need something that works better for us'.

'Because if you make it more difficult to trade, guess what? It's not so successful from our point of view.'

He added: 'We do think there's a better deal to be had – obviously that will have to be negotiated. It does not mean going back in but it does mean an improvement on what we've got for businesses.

'We want to get a better deal because, at the end of the day, we want you and those that are coming in and out of this port to be able to do it as easily as is possible being outside of the EU and not to make life harder.'

A European Commission spokesperson declined to comment on Labour's proposals but said: 'We have discussions with [the UK] to manage the relationship and it is in that context that we discuss any issue that can come up.'