We spoke to Rachel Reeves, and started by asking if she agreed with some consultants {that a} commerce warfare with the US can be disastrous.
Rachel Reeves: I feel that’s moderately leaping the gun and I’m not going to touch upon hypotheticals. However there’s £300 billion price of commerce between the UK and the US. One million Brits work for American companies. One million Individuals work for British companies. That’s testomony to the particular and powerful relationship between our two international locations that I do know will proceed beneath President Trump.
Cathy Newman: But when Trump did impose tariffs on the UK, we’d be compelled to retaliate, wouldn’t we?
Rachel Reeves: I don’t assume tariffs are good for anybody and I’ll be making that case strongly. However final time President Trump was within the Oval Workplace, commerce between the UK and the US elevated and I’ve little doubt that that may occur once more.
Cathy Newman: So that you’ve by no means been a Brexiteer, clearly, however is there a possible Brexit profit that if there was a commerce warfare or perhaps a skirmish, the UK might be barely nimbler outdoors the EU?
Rachel Reeves: The EU has a commerce surplus with the US, that’s not the case for the UK. President Trump is worried about international locations which can be working surpluses and that’s not the British case.
Cathy Newman: So higher off out?
Rachel Reeves: No, I imply I’m not going to revisit. We’ve left the European Union nearly 9 years in the past now since that vote, we’re not going to start out revisiting that. However there are a selection of areas the place we may be nimble as a rustic. We’ve got been, for instance, on the regulation of AI and the best way that we’re implementing world requirements on monetary providers. This isn’t an both or, it’s not commerce with the US or commerce with Europe, however we have to commerce with international locations world wide. We’re an open financial system, open for enterprise.
Cathy Newman: You want a commerce deal, a bilateral commerce take care of the US. How quickly do you hope you may get that with the brand new administration?
Rachel Reeves: We’ll look to do offers with international locations world wide. In the meanwhile, we’re in negotiations with the Gulf international locations on a commerce deal which might be advantageous for funding and commerce within the UK. We’ll proceed to search for offers proper throughout the globe.
Cathy Newman: Companies right here have been telling me, I’m certain they’ve been telling you, that there’s been a chilling impact from the finances of tax rises. Figures yesterday counsel that employers paused hiring after the nationwide insurance coverage rise, for instance. Are you able to inform companies ‘learn my lips, no extra tax rises’?
Rachel Reeves: I’m not going to write down 5 years’ price of budgets within the first six months in workplace. However what the finances in October did was draw a line beneath the financial and monetary mismanagement of the Conservative authorities. I’ve now put our public funds so as, so by no means once more will I’ve to do a finances like I did in October. However public funds at the moment are on a agency footing.
Cathy Newman: You have been barely extra express in regards to the prospect of tax rises instantly after that finances. December, you mentioned, ‘I’m actually clear. I’m not coming again with extra borrowing on extra taxes’. You possibly can’t say the identical now, are you able to?
Rachel Reeves: Our fiscal guidelines are non-negotiable. Our fiscal guidelines to get debt down as a share of GDP and steadiness daily spending with tax receipts. These fiscal guidelines are so necessary as a result of that’s what gives the steadiness in our financial system.
Cathy Newman: It simply hasn’t been excellent news for you in any respect in the previous couple of weeks, has it? Even right now, authorities borrowing in December was the very best for 4 years.
Rachel Reeves: You possibly can all the time level to 2 knowledge factors which can be much less good. However let me level to some which can be extra constructive. This week, PWC printed a report that mentioned world CEOs see Britain because the second greatest place on this planet to speculate other than the US. That’s the primary time in 28 years that we’ve been at that time within the league desk.
Cathy Newman: You’re right here with a transparent push for development. Reportedly, you’re backing airport growth as a part of that mission, together with a 3rd runway at Heathrow. So I simply marvel what you say to Ed Miliband, who’s been against this, vehemently opposed, amongst different cupboard members prior to now?
Rachel Reeves: This authorities have already signed off growth at Metropolis Airport and Stansted Airport. I’m not going to touch upon hypothesis or choices to come back. However development is the primary precedence of this authorities. We wish to welcome worldwide investments and commerce from world wide.
Cathy Newman: Keir Starmer used to say that he most popular Davos to Westminster. Given all of the criticism you’ve had at house, do you share that view now you’re right here?
Rachel Reeves: Being in Davos is a vital a part of my job as chancellor. I wish to convey good jobs and development to Britain to make working individuals higher off. And that’s precisely what I’m doing in Davos this week.
Cathy Newman: You’ve had numerous unkind criticism at house, haven’t you? A few of your critics name you ‘Rachel from accounts’. Do you see it as a type of whiff of sexism there?
Rachel Reeves: I’ll let different individuals make the judgement. I’m simply going to get on with the job.
