Britain is edging towards a new defence agreement with the European Union that officials on both sides hope will help to improve post-Brexit ties following U.S. President Donald Trump's upending of security and trade alliances.

Ministers have said they want to improve the UK’s relationship with the continental bloc, on matters across trade, defence, and border security.

Rachel Reeves said there were similarities with the way both the US and UK governments had come to power off the back of voter frustration with the economy. Speaking to BBC Economics Editor Faisal Islam ahead of her meeting with US Treasury Secretary Scott Bessant on Friday,