Rachel Reeves has been accused of a “Brexit betrayal” after declaring that Britain’s future is “inextricably bound with that of Europe”.

Last night, the Chancellor claimed closer relations with Brussels were the “biggest prize” for the UK economy – and revealed Labour was ready give away powers to the EU in order to secure a better deal.

“I think further integration will require further alignment – but I’m up for that. Keir Starmer’s Government is up for that,” she said.

“I strongly believe that Britain’s future is inextricably bound with that of Europe, and that is for economic reasons… but also reasons of security, resilience and defence.

“The truth is, economic gravity is reality, and almost half of our trade is with the European Union. We trade almost as much with the EU as the whole of the rest of the world combined.”

Her remarks represent a marked reversal – just three weeks ago, she told Davos delegates that Britain could not “go back in time” in its relationship with the EU.

And they have raised fears that she and the PM may be veering to the left to cool an emboldened Cabinet after a week of leadership challenges and scandal.

Reform UK’s Suella Braverman said: “The great Brexit betrayal is underway. Fresh from kowtowing to communist China, the Government are exploiting their own chaos in No10 to quietly pull us back into the European Union… We will once again become a rule taker, not a rule maker.”

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RECAP: What did Rachel Reeves say at the WEF – just three weeks ago?

At the World Economic Forum’s annual gathering in Davos last month, the Chancellor vowed Britain “could not go back in time” on Brexit.

“Since we’ve left the EU, we have done trade deals with India, with the US, with South Korea,” she said.

“I don’t think you have to return to the customs union to seize greater benefits of free and fair trade.”

That was seen as a slap-down to calls from around the Cabinet table to cosy back up to Brussels.

Business Secretary Peter Kyle had claimed it would be “crazy” for Britain not to consider the idea of joining a customs union.

Deputy PM David Lammy said it was “self-evident” that the British economy had been hurt by Brexit, adding that Turkey’s economy had grown since it forged greater ties with Brussels by joining a customs union.

And Health Secretary Wes Streeting said that being part of the customs union had yielded “enormous economic benefits” before Brexit.

RECAP: No10 insider goes public to reveal details of exactly what Keir Starmer knew about close aide’s paedophile links

Sir Keir Starmer backed nominating his former communications chief for a peerage despite being told of his links to a paedophile councillor, an ex-No10 adviser has claimed.

Tim Allan, who resigned from No10 on Monday, confirmed the Prime Minister’s ex-chief of staff Morgan McSweeney instructed him to discuss Matthew Doyle’s friendship with Sean Morton.

The Prime Minister was first made aware of concerns about Lord Doyle’s relationship with Morton on December 4…

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