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Chancellor Rachel Reeves has mentioned that Donald Trump’s world commerce battle has made it much more “imperative” for the UK to enhance post-Brexit buying and selling relations with the EU, forward of a key summit subsequent month.
Reeves is pushing for Britain to pursue an bold financial agenda in EU/UK “reset” talks, though the federal government continues to rule out any transfer to rejoin the EU customs union.
The chancellor, in an interview with the Monetary Occasions, additionally mentioned that Britain may exploit the chaos unleashed by the US president by presenting itself as “a place of stability” to take a position.
Her feedback got here on the day the federal government confirmed backing for a significant new theme park in Bedford, 60 miles north of London, which she mentioned was “testament to the stability and security the UK offers”.
Talking at 11 Downing Road, Reeves mentioned the UK wished to enhance commerce with “partners in Europe”, including: “Since Brexit, it has been harder for British firms to export around Europe, particularly smaller firms. Many feel shut out of European markets.”
She mentioned {that a} summit between the UK and the EU on Might 19 shall be an opportunity “to refresh our relationship and make it easier for businesses to trade”.
Reeves added: “I feel that in the current environment, there is a greater willingness from countries around the world to look at both tariff and non-tariff barriers that are holding back trade.
“Many of the developments, whether it is Russia’s invasion of Ukraine or the challenges in global trade at the moment, mean that there’s an even greater imperative to improve our trading relationships with Europe.”
Reeves is pushing for Sir Keir Starmer to take an bold strategy to eradicating EU commerce obstacles. She has proposed that Britain ought to align its rules overlaying established industries, equivalent to chemical compounds, with Brussels guidelines to boost market entry.
Nonetheless, EU officers warn in opposition to Britain “cherry-picking” components of the one market and that the UK’s official goals haven’t modified. They embrace nearer defence co-operation, elimination of obstacles to meals commerce and mutual recognition of {qualifications}.
Reeves was resulting from meet high Metropolis executives on Wednesday morning together with Charles Nunn, chief government of Lloyds Banking Group, Dan Olley, chief government of Hargreaves Lansdown, and Andrea Rossi, chief government of M&G.
She promised to “talk about the impact and the response they want to see from the government” in reply to Trump’s tariffs and the worldwide financial fallout.
Reeves mentioned: “No one wants to see a trade war. It’s in no one’s interest. Knee-jerk reactions are not going to be good for UK businesses or UK jobs, and so we’re approaching this in a responsible, calm way.”
The chancellor added that she would search to barter a US commerce deal when she went to Washington later this month for the IMF assembly of worldwide finance ministers.
There was “absolutely no doubt that trade will very much be on the agenda when we’re at the IMF later this month”, she mentioned.
She declared “nothing is off the table” when in search of to react to the tariffs imposed by Trump on the UK, which have sparked reciprocal rises in international locations equivalent to China, however that the UK authorities was “approaching tariffs with a cool head”.
Reeves mentioned the choice by Comcast, the US media large, to take a position right into a multibillion-pound theme park in Bedford was a “real show of confidence in the UK economy”. The federal government is investing in native transport infrastructure to facilitate the venture.
She mentioned that Comcast may have chosen many alternative international locations however “the fact that they’ve chosen Britain shows the strengths of our economy, the enduring strengths, and also our huge advantages in the creative industries”.
Reeves mentioned the worldwide financial turmoil unleashed by Trump’s tariff battle had made the UK a extra engaging place for worldwide funding.
“Growth is the number one mission of this government, and securing this investment, this landmark project, is testament to the stability and security that the UK offers as a place to invest,” she mentioned.
She mentioned the financial system would see “£50bn of benefit” by means of the “combination of stronger tax revenues [and] also the jobs that it’s going to create, the money that’s going to be put in people’s pockets”.
The event and working of the location is estimated to create 20,000 jobs in a spread of building and artistic industries, in addition to within the retail and hospitality sector.
Reeves declined to be drawn about whether or not the federal government would wish to react or take financial motion to help the already faltering UK financial system, which is liable to being hit by the worldwide commerce battle.
When requested concerning the potential for tax rises or spending cuts, she mentioned: “Economic stability, fiscal stability, is the key underpinning for a strong and growing economy, and that’s why we are, as a government, so committed to those fiscal rules.”
