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Starmer Unveils Measures to Counter Economic Challenges
Keir Starmer has introduced significant initiatives aimed at bolstering the automotive and pharmaceutical sectors, amid concerns about Britain navigating a “changing and completely new world” in light of Donald Trump’s recently imposed tariffs.
In a speech delivered at the Jaguar Land Rover facility near Birmingham, the Prime Minister highlighted the substantial implications of US tariffs, which set a 10% tax on UK exports and a 25% tax on vehicle imports. He described these tariffs as presenting a “huge challenge for our future,” stressing that the global economic fallout could be considerable.
Starmer defended the fiscal guidelines introduced by Chancellor Rachel Reeves in the recent October budget, suggesting that this was the appropriate moment to build on those foundations to promote economic stability. However, he refrained from explicitly committing to maintaining these rules until the next general election.
He reaffirmed Labour’s pledge from their manifesto to avoid increasing VAT, income tax, or national insurance contributions for employees through the end of the current parliamentary term.
In an effort to adapt to the changing landscape, Starmer announced a moderation of the UK’s electric vehicle targets. He stated that luxury manufacturers, including Aston Martin, would be permitted to produce petrol vehicles beyond the 2030 deadline, and new hybrid models would continue to be available for an additional five years until 2035.
Additionally, to support the pharmaceutical sector, Starmer committed to reducing bureaucratic hurdles, with a goal to expedite the setup of clinical trials from the current 250 days to just 150. He also revealed plans for a substantial £600 million investment in a health data research facility to be established in Cambridge.
On the global stock market front, shares on Wall Street saw a significant decline at the start of trading on Monday, although they later recovered some losses. In London, the FTSE 100 index dropped to its lowest point in a year.
Starmer described the measures he announced as a “downpayment” and a “statement of intent,” indicating that more details would be shared in the days ahead. He emphasized his commitment to protecting British businesses from economic upheaval and reassured citizens affected by the situation that “we’ve got your back.”
When addressing the uncertain future of the British Steel plant in Scunthorpe, which is at risk of closure, Starmer indicated that all potential solutions are being considered, amid increasing calls for government intervention to nationalize the facility.
The Prime Minister reiterated his unwavering support for the net zero agenda, although he insisted that his approach is not driven by ideology. “There’s a global race on for the jobs of the future in relation to net zero. I don’t think now is the time to step away from that race,” he stated, highlighting the importance of pragmatism and flexibility in achieving sustainable goals.
When questioned about taking a firmer stance against Trump and reconsidering the invitation for a second state visit, Starmer responded that it would not be beneficial to sever ties with the US.
In closing, Starmer articulated the necessity for the nation to unite in addressing the “great challenge of our age,” which he described as renewing Britain to ensure security in a world marked by instability. He asserted, “At a moment like this, our future is in our hands,” underlining the importance of maintaining calm while striving for the best possible deal with the US, alongside efforts to enhance trade relations globally.
“We are also going to work with our key partners to reduce barriers to trade across the globe, to accelerate trade deals with the rest of the world, and champion the cause of free and open trade right across the globe,” Starmer concluded.
Source
www.theguardian.com