IMF chief says it is for British people to decide on Brexit as UK seeks EU deal

The head of the International Monetary Fund, Kristalina Georgieva, has said it is up to the British people to decide about Brexit. She was asked at the IMF annual meeting in Bangkok whether Brexit was back on the agenda. She did not respond to a question about whether rejoining the EU would make British people richer.

Before Brexit, the IMF warned that leaving the European Union would make Britain poorer than it would otherwise have been. It has since concluded that higher trade barriers have damaged business investment and productivity. The analysis is broadly in line with much of the economic research carried out since.

Two weeks ago, the Prime Minister opened the door to renegotiating the UK's long-term relationship with the EU. The question for the IMF is whether closer trade ties would leave the UK more prosperous. Asked whether a closer relationship with the EU would make Britain richer, Georgieva said it was for the British people to decide, adding that the world calls for more collaboration between like-minded countries. She stopped short of saying closer ties would boost the British economy, but her answer suggested she sees benefits.

Andy Burnham said Brexit in his view has done more harm than good. Labour's manifesto commitments mean no return to the customs union, the single market or free movement of people until the next election. In the meantime, the government hopes to cut a more limited deal at an EU-UK summit as soon as next month. The aim would be to lift restrictions on trade in food and drink and allow young people to live, work and study in each other's countries.

Opinion polls suggest broad support for closer ties with the EU. But it is not known how close the government wants to get, or what the EU will demand in return. While there may be a strong economic case for bringing down trade barriers, the political trade-offs are tough.