MPs have warned Sir Keir Starmer’s plans for UK-EU relations going forward have a lack of direction to help to boost the UK economy and provide beneficial results for Britain.
The Prime Minister’s proposed UK-EU relation “reset” has been slammed for a lack of clear, distinct strategic objectives, with even the foreign affairs committee saying it was still unclear what this new relationship would look like.
Work began in May to formulate pipelined agreements, including a new youth mobility scheme and the removal of trade barriers covering food and agricultural products, among others.
Chancellor Rachel Reeves took to the Commons on Tuesday to deliver the Spring Statement, detailing closer trade ties with Europe as a "key part" of an ongoing growth strategy, with little detail on what it will entail.
Ms Reeves she said she wanted to strengthen global relationships, “breaking down trade barriers and deepening alliances with our European partners for a more secured and connected economy”.
A government spokesman said: “We are stripping away the costly bureaucracy and red tape that acts as a drag on growth, backing British jobs and putting more money in people’s pockets across the country".
The EU-UK summit this summer should see the first deals struck by No10 to improve EU relations.
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Minister rejects Trump's swipe at PM as 'no Winston Churchill'
A minister has dismissed Donald Trump’s claim that Sir Keir Starmer is "no Winston Churchill”, arguing that the Prime Minister had approached the situation with a “cool head, a real clarity of purpose” and “a determination to do the right thing for the British people”.
Chief Secretary to the Treasury James Murray told Times Radio: “President Trump has expressed his disagreement with the decision that we took about joining those initial strikes on Iran over the weekend.
“But I think what’s really important when we think about that decision is to recognise that the Prime Minister took the decision he did in the national interest, and he’s approached this with a cool head, with a real clarity of purpose, with a real focus and a determination to do the right thing for the British people.
“That’s why we took the decision we did not to join those offensive actions, the initial strikes, a few days ago, but then when it came to a defensive action in order to protect British citizens, we stepped up and made sure that we are doing what we need to do to keep British people safe.
“Well, I think the president has expressed himself using his words, but what’s important for me is that the Prime Minister is taking the right decisions for the UK, and, of course, that the special relationship between the US and the UK continues. We work together with the US, day in, day out".
Government confident to 'beat the forecasts' and drive economic growth
A minister denied the Government had washed its hands of its mission to achieve the highest sustained growth in the G7 and said it was confident it would be able to “beat the forecasts”.
Chief Secretary to the Treasury James Murray was asked about the ambition set out by Labour before the election, and told Sky News that the UK had seen “the fastest-growing G7 economy in Europe” last year.
It was put to him that this was different and that the Government could not change the wording and “wash your hands” of the mission, to which he replied: “That’s not what I’m doing. We stand by that - that is our commitment, we want to aim for that, but we know that change takes time - we know that things aren’t going to happen overnight.
“What the Chancellor said yesterday is that the direction of travel is right, that we have inflation down, borrowing down, debt interest payments down, investment up, business confidence up – all of those are essential conditions for growth and that’s why we are confident going into this year, and the years beyond, that we will be able to beat the forecasts".
Chancellor came with 'no clear plan', Mel Stride told GB News Breakfast
".Mel Stride on GB News Breakfast
|GB News
Shadow Chancellor of the Exchequer Mel Stride claimed Rachel Reeves Spring Statement ushered 'no clear plan' for the immediate future of Britain's economy.
He claimed the ongoing conflict in the Middle East will inevitably have lasting effects on the UK economy that will be "very tough to deal with".
"You'll find it a lot easier to deal with if you had a much more rapidly growing economy," he added.
Mr Stride noted the slashed growth forescasts, inflation spiking upwards, and unemployment at an unprecedented high - all of which he deemed severely problematic.
He said: "You add all of those things up and it's an economy that's not in a good position to withstand these shots.
"She needs to get on top of public spending, particularly the welfare bill, get people off benefits and into work, and then get taxes down and get the economy moving".
UK’s economic outlook seems 'bleak’, says think tank after Spring Statement
The Resolution Foundation think tank said the nation’s immediate economic future is “highly uncertain” as it revealed its response to the Chancellor’s spring statement.
Yesterday, Rachel Reeves said her fiscal plan was “more necessary than ever before in a world of uncertainty” with the Iran conflict threatening economic stability.
But the Office for Budget Responsibility indicated gross domestic product will increase by just 1.1 per cent in 2026, down from the 1.4 per cent it forecast in November.
The Resolution Foundation said that while the UK is set for a strong year of living standards growth, especially for lower-income families, the lengthier economic outlook is “bleak”.
Ruth Curtice, the organisation’s chief executive, said in a statement: “The immediate economic outlook for Britain is highly uncertain, with yesterday’s forecasts already looking out of date, while the living standards picture for the rest of the Parliament is very lopsided.
“This coming year is set to be a decent one for living standards, and a bumper one for poorer families, as wages and benefit support rise above the level of inflation.
"But a fresh energy price shock risks puncturing this good news.
“With wage growth set to tail off, the living standards picture for the rest of the Parliament is bleak.
“This should remind policy makers of the need to both navigate near-term uncertainty and support productivity-based economic growth over the medium term.
“That is the only way to meaningfully lift living standards throughout Britain".
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