Closer ties with EU become the 'biggest prize' for chancellor

In a speech this week, Rachel Reeves will stress the importance of economic cooperation as war in Iran increases the appetite for new deals on defence

- Rachel Sylvester Political Editor

Prime minister Keir Starmer and Chancellor Rachel Reeves with other UK and EU officials, including European Commission President Ursula von der Leyen, during last year's landmark UK-EU summit on 19 May in London.

(Kin Cheung/AFP, Getty)

Oxford and Cambridge will be turned into "Europe's Silicon Valley" in plans to be laid out by the government this week. A new development corporation for Greater Oxford will coordinnate the initiative, cutting through bureaucracy to regenerate the area and boost jobs.

As Downing Street seeks to get back on the front foot after the release of the first tranche of documents relating to the appointment of Peter Mandelson as UK ambassador to Washington, the chancellor will put closer ties with the European Union at the heart of the government's economic growth strategy.

In the Mais lecture in London on Tuesday, Rachel Reeves will stress that greater access to the single market is crucial to protect the UK economy against global shocks, including war in the Middle East. She will highlight the benefits of dynamic alignment with the EU.

The speech will be the latest attempt by Reeves to ratchet up the rhetoric on closer relations with the EU, which she has described as the "biggest prize" in terms of trade.