Chancellor Rachel Reeves is set to enhance the UK economy by fostering closer relations with the EU during her upcoming trip to Brussels in December 2024. This initiative comes in response to the UK's sluggish GDP growth, which has been compounded by increased taxation burdens. The Labour Party aims to position the UK as the fastest-growing economy in the G7, though economists remain skeptical about achieving growth rates comparable to those of the US. [f0b1d91d]
A recent YouGov poll conducted for Best For Britain from November 25-27, 2024, revealed that 44% of Britons believe the UK's economic future lies with the EU, while only 19% favor strengthening ties with the US. This sentiment is echoed in the findings that 49% of respondents trust the EU compared to just 30% for the US, with 40% expressing distrust towards the latter. The poll included over 4,300 respondents and highlighted a significant shift in public opinion, particularly among voters who switched from the Conservative Party to Labour, who now support closer ties with Europe. [f0fad4a3]
However, this shift has drawn criticism from some quarters. Rupert Lowe MP has publicly condemned Labour's approach to Brexit, arguing that the party is moving too close to the EU, which he believes undermines the 2016 Brexit vote. He asserts that Labour's reset with the EU threatens British sovereignty and accountability, emphasizing the need for the UK to focus on growth through ties with the US rather than the EU. [257d936b]
In her Plan for Change speech, Prime Minister Keir Starmer will outline five key priorities, including improving trade relations with both the EU and the US. Despite the growing preference for EU relations, Starmer has stated that he does not want to choose between the EU and the US, indicating a balanced approach to international trade. A previous 'global Britain' strategy received low trust ratings for countries like China, India, Saudi Arabia, and Brazil, with trust levels at 12% or lower. [f0b1d91d]
The government has announced a significant £63 billion in international investments and plans to increase borrowing by £30 billion to support state investment. Labour's manifesto includes ambitious plans to overhaul planning permissions to stimulate construction, while Ed Miliband is spearheading initiatives for green infrastructure aimed at reducing reliance on fossil fuels. [f0b1d91d]
Reeves has emphasized the importance of cutting red tape to enhance competition and has proposed a new industrial strategy designed to promote productive businesses. This shift in focus aims to transition the Treasury's priorities from merely managing fiscal events to actively fostering economic growth. [f0b1d91d]
As the UK continues to navigate the complexities of post-Brexit economic challenges, the emphasis on trade relations, particularly with the EU, remains a critical component of the government's strategy. The effectiveness of these policies will be closely monitored as the Labour government seeks to revitalize the economy and address public concerns regarding growth and investment. A review of the Trade and Co-operation Agreement is also set for 2026, which will further shape the UK's trade landscape. [f0b1d91d]
In related news, Yvette Cooper is scheduled to meet with French counterpart Bruno Retailleau in Calais to discuss immigration issues, reflecting ongoing diplomatic engagements between the UK and EU nations. Meanwhile, the Bitcoin Mena conference is set to take place in Abu Dhabi, attracting industry leaders and highlighting the growing interest in cryptocurrency markets. [b6c67ce6]