Chancellor Rachel Reeves has told a committee at the International Monetary Fund (IMF) that Brexit has caused long-term damage to the UK economy.
Reeves emphasised the impact of the Brexit deal , telling the world's top finance ministers and central bankers: "The UK's productivity challenge has been compounded by the way in which the UK left the European Union."
The BBC reports that she quoted the Office for Budget Responsibility's calculation of a 4% long-term hit relative to remaining in the EU, and said the UK "acknowledges this" in seeking stronger trade ties.
Her comments mark an apparent change in approach from the Labour government, which until recently has been reluctant to put emphasis on the economic drawbacks of Brexit.
It is expected that Reeves will link anticipated tax rises in her autumn budget to a downgrade in long-term UK productivity.
The BBC reports that Brexit will likely feature in the OBR's forecast for next month's budget, which will set out in detail why any downgrade has occurred.