Chancellor Rachel Reeves has identified Brexit as a key cause of the "structural challenges" facing Britain's economy as she sets her sights on strengthening ties with the US ahead of Donald Trump's return to the White House.

Speaking in her maiden Mansion House speech, Reeves dedicated a section of her speech to the challenges facing the West due to "geopolitical uncertainty".

Despite reiterating Sir Keir Starmer's position that the UK would not look to rejoin the EU, the Chancellor appeared to concede Brexit has had a detrimental impact on Britain's economy.

She said: "There are other countries who are looking for the very same economic opportunities as we are. And we face structural challenges too, including those which have come from Brexit.

"It will not be straight forward to navigate all of these headwinds. We should be honest about that.

"But as we navigate them, I will be guided by a clear principle. I will always do what is in our national interest, for our economy, for our businesses and for the British people.

Turning her attention to the US, Reeves added: "There is so much potential for us to deepen our economic relationship [with the US] on areas such as emerging technologies.

"I look forward to working closely with President-elect Trump and his team to strengthen our relationship in the years ahead."

Reeves, who was a supporter of continued EU membership in 2016, added: "And, of course, our biggest trading partner is the European Union.

"We will not be reversing Brexit or re-entering the Single Market or Customs Union but we must reset our relationship."