Chancellor John Healey has said the Government will pursue closer cooperation with the European Union at next week's UK-EU summit, but only in areas where the benefits for businesses and consumers outweigh the costs.

Speaking to the BBC on Thursday, Mr Healey said Britain would seek agreements on food and farming that cut red tape, ease costs for businesses and help bring down prices for shoppers.

He said the Brexit deal agreed a decade ago under the previous government "just isn't good enough", adding: "Where we can improve that we will."

Trade-offs at the summit

Asked whether closer ties would involve trade-offs, the Chancellor was blunt about the calculation facing ministers. "The benefits to Britain, to the cost of business, the relief of some of the pressure of prices for consumers outweighs the costs," he said. "That's the trade-off."

Prime Minister Andy Burnham has pushed for a broader reset of relations with the EU since taking office, arguing it would support growth and tackle shared challenges. Last month he said Britain needed an "honest discussion" about its future relationship with the bloc and suggested freedom of movement could be considered as part of a wider package.

Mr Healey drew a line, however, around financial services, saying Britain would continue to "forge our own way" in the sector rather than aligning with EU rules.

What happens next

The summit in Brussels on 20 November will be the first big test of the Government's approach, with ministers hoping to strike practical deals on food and farming while avoiding a fresh row over Brexit. Critics, including former prime minister David Cameron, have warned that reopening the question of rejoining the EU would trigger a "long and painful" debate.

For now, the Government's message is that the reset will be judged deal by deal.