Chancellor says Brexit deal caused long-term damage to UK economy. Chancellor Rachel Reeves has said the 2020 Brexit deal caused lasting damage to the UK economy, telling global finance ministers at the International Monetary Fund, that Britain’s productivity “has been compounded by the way in which the UK left the European Union.” Citing the Office for Budget Responsibility, Reeves said the country faces a four percent long-term hit compared with remaining in the EU, adding that the government “acknowledges this” as it seeks stronger trade ties. Her comments mark a shift in tone for Labour, which had previously avoided highlighting the economic downsides of Brexit. The government is expected to use this argument ahead of next month’s Budget, where tax rises may be announced to address lower productivity. The OBR is also due to explain in detail the reasons behind any downgrade to the UK’s long-term economic outlook when it publishes its latest forecasts in November. Instructions: THIS VIDEO MUST NOT BE EDITED FOR LENGTH TO COMBINE WITH OTHER CONTENT