RECENTLY APPOINTED FINANCE Minister Jack Chambers is in London today to meet with his UK counterpart, who herself became Britain’s chief finance minister after Labour’s landslide election win in July.

Chambers was announced as Ireland’s Minister for Finance at the end of June, taking the reins from Michael McGrath.

Rachel Reeves meanwhile became Britain’s Chancellor of the Exchequer on 5 July, the day after the UK General Election.

The two spoke via phone in mid-July, when they decided to schedule an in-person meeting.

File image of Britain's Chancellor of the Exchequer Rachel Reeves Alamy Stock Photo Alamy Stock Photo

A Department of Finance spokesperson said that today’s meeting “offers an excellent opportunity to discuss issues of common bilateral interest”.

They added that the Government is “fully committed to a strong Irish-British relationship in all its various dimensions”.

While the Department spokesperson acknowledged that the “relationship has seen significant challenges in the years since Brexit”, they added that “there is now positive momentum” following Labour’s election win in July.

Ahead of the meeting, Chambers said that both he and Reeves “share a common determination to play our full part in the reset of Irish-British relations which is now well underway”.

Chambers added that these “relations are of deep consequence” and that they have many strands, including “human, cultural, sporting and business”.

He continued: “As well as being co-guarantors of the Good Friday Agreement, we are also very significant trading partners with important economic and strategic links.

“Two-way bilateral trade in goods and services between Ireland and the UK was worth over €122 billion in 2022—or about €2.4 billion per week.

“With Ireland now ranking as the UK’s fourth-largest export partner, such figures confirm the significance of bilateral trade to both our economies.”

Chambers added that a “close and constructive relationship between the EU and UK is very much in Ireland’s interests” and that he looks forward to “hearing from the Chancellor on the new UK government’s priorities in this area”.

The meeting comes as Reeves warned that the UK could have faced an economic crash has it not axed winter fuel payments for millions of pensioners to fill a black hold in public finances.

Reeves and Labour leader and British prime minister Keir Starmer have faced criticism from opponents, campaigners and some of their own MPs over the decision to means-test the payments worth up to £300 (€350).

From this winter, the fuel payments will be restricted to the poorest pensioners, those who are on pension credit.

The UK Government has launched a campaign to encourage those eligible for the benefit to claim it.

Labour has blamed a “huge legacy of overspend” by the Conservatives for the problem.

Speaking today, the leader of the House of Commons, Labour’s Lucy Powell, said there was “no alternative” and the decision was needed to avoid an economic catastrophe.

The main role of the leader of the House of Commons is to organise government business in the House of Commons. 

On LBC radio, Powell said: “What we’ve been left with is a huge legacy of overspend.

“They’ve overspent on the asylum system to the tune of nearly £7 billion, they knew that the public sector pay deals that were sitting on their desk before the election would be honoured by them or any incoming government, and they hadn’t set aside any money.

“The reserves have gone to nothing, so we’re having to add up the current year that we’re in and the forthcoming years, that is very different from making a big choice to reduce the size of the state by billions and billions of pounds as that previous government did.

“The £22 billion black hole inherited from the previous governments means we are having to take tough decisions now to fix the foundations of our economy – including making the winter fuel payments available to those most at need.”

-With additional reporting from Press Association