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Optimism for UK-US Trade Agreement Under Trump Administration, Says JD Vance
Washington expresses confidence in securing a “great” bilateral trade agreement with London, according to US Vice President JD Vance.
In a recent interview with Unherd, Vance conveyed to Sohrab Ahmari the US’s positive outlook on trade negotiations. He stated:
“We are certainly engaged in robust discussions with Keir Starmer’s government. The president holds a deep affection for the UK, reflecting his respect for the late Queen and admiration for the King. This is a fundamentally important relationship. Furthermore, as a seasoned businessman, the President maintains significant commercial interests within the UK.
“However, the ties extend beyond mere commerce. A genuine cultural connection exists, rooted in America’s Anglo heritage. Therefore, I am optimistic about the prospects of reaching a substantial accord that serves the mutual interests of both nations.”
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Vance’s remarks surface weeks after the current US administration implemented a blanket 10% tariff on imports from the United Kingdom, with elevated tariffs imposed on specific industries such as automotive manufacturing.
Key events
Minister Favors Private Sector Involvement for British Steel
The government prefers a private sector solution for British Steel, rather than permanent nationalization, according to Business and Trade Minister Sarah Jones.
Speaking on Sky News, Jones emphasized the necessity for prudent financial management, stating, “We are proceeding cautiously to ensure taxpayer funds are used responsibly, and to avoid any potential waste. Consequently, our primary approach is to seek a suitable private sector partner.”
Despite calls from senior Labour figures to reassess Chinese investment in UK infrastructure, Jones did not dismiss the possibility of engaging with another Chinese firm.
Addressing viewers, she commented:
“Currently, I am not in a position to either confirm or deny any specific proposals that are not yet formally presented or under consideration.
“Regardless of British Steel’s future in Scunthorpe, our commitment is to preserve primary steel production within the nation. We aim to foster growth in the industry, reversing the decline witnessed in recent years.”
British Steel Rescue Funds Already Allocated, Minister Affirms
Business and Trade Minister Sarah Jones has confirmed that financial resources for the British Steel rescue operation in Scunthorpe have been pre-budgeted and fall “within the existing fiscal framework.”
Speaking on Times Radio on Tuesday morning, the Labour MP for Croydon West elaborated:
“Regarding steel, we have been unequivocally clear about the importance of securing the Scunthorpe site’s future. This is vital not only for the 2,700 employees but also due to increasing steel demand within the UK market. We recognize a viable market exists.
“The demand for steel is set to increase, driven by our ambition to construct 1.5 million new homes, invest in clean energy and railway infrastructure including projects like Heathrow expansions. Therefore, it’s evident that the steel industry requires our support to ensure its long-term viability.
“Our manifesto pledged a £2.5 billion investment in UK steel through our comprehensive steel plan. We have established a dedicated fund aimed at ensuring the steel industry’s sustained prosperity. These commitments are fully incorporated within the existing fiscal parameters and governmental financial regulations.”
Unite Official Accuses Birmingham Council of ‘Shifting Goalposts’ in Waste Dispute
Unite’s national lead officer, Onay Kasab, has accused Birmingham City Council of repeatedly “shifting the goalposts” amidst the ongoing dispute which has led to substantial refuse accumulation in city streets.
Speaking to BBC Radio 4’s Today programme, Kasab elaborated on the union’s stance:
“The council’s position has been inconsistent. At times, they cite equal pay as the core issue, while at others, they emphasize service enhancement. It remains unclear how service quality improves through wage reductions.
“Fundamentally, different policy decisions are needed. Why should working individuals bear the financial burden of austerity measures? Why should our members be penalized for local authority budget cuts?”
When challenged on the historical equal pay liabilities contributing to the dispute, Kasab responded:
“The council has referenced equal pay liabilities; however, detailed specifics remain undisclosed. Moreover, discussions around equal pay should focus on upward harmonization and improving women’s wages. This instance of downward harmonization achieves no positive outcomes. The crux of the matter lies in political choices pertaining to local authority funding.”
In a tense exchange, presenter Nick Robinson introduced an anonymous briefing, previously reported by the BBC, accusing Unite’s national leadership of prolonging the dispute. The briefing alleged that the union’s leadership was “in the grip of individuals for whom disruption, disputes, and revolution are paramount.”
Kasab retorted:
“Frankly, I consider that assessment puerile. Our focus is the defense of our members’ pay and working conditions, something we will consistently pursue without reservation. I will not engage in personal attacks or ‘mud slinging’; such briefings are indeed puerile. The priority must be resolving this dispute.”
Minister Reiterates Call to End Birmingham Bin Strike
Following Unite union’s rejection of a pay offer from Birmingham City Council, Business and Trade Minister Sarah Jones has renewed the government’s appeal for the immediate resolution of the bin dispute.
During an appearance on BBC Breakfast, Minister Jones articulated the government’s position:
“The fundamental imperative is to halt the ongoing strike. Unite must accept the presented offer, which we believe is fair and reasonable. This acceptance is crucial for restoring normality in Birmingham.
“While support is being mobilized from neighboring councils, logistical aid from the Army, and private sector involvement, the current situation remains untenable. The visual evidence is distressing, and residents face undue hardship with uncollected waste adding to their daily concerns.
“Our clear message to Unite is: cease the strike, agree to the terms, and allow Birmingham to return to normalcy – an outcome residents rightfully anticipate and deserve.”
Government Reviews Disappointing Economic Data
Government ministers are examining concerning economic indicators today, including the steepest decline in UK payroll employment since the peak of the Covid-19 pandemic, and a drop in UK business confidence to a more than two-year low.
Economic correspondent Richard Partington reports:
“According to figures released by the Office for National Statistics (ONS), the number of individuals in paid employment, as measured by PAYE data, decreased by 78,000 in March, following a revised decrease of 8,000 in February.
“This data reflects a cooling labor market. However, the latest figures also show a slight increase in annual pay growth in the three months leading up to February, maintaining historically elevated levels. Regular pay, excluding bonuses, increased to 5.9%, up from a revised 5.8% in the preceding three-month period ending in January.
“Despite the reduction in payroll employment, the ONS maintains that the official unemployment rate remained stable at 4.4% in the three months to February.”
It is important to note the current reservations regarding the reliability of some ONS labor market data.
Minister Applauds ‘Positive’ Remarks on Potential UK-US Trade Agreement
Business and Trade Minister Sarah Jones has welcomed the “positive” statements from US Vice President JD Vance, indicating the US is actively “working very hard” with the UK towards a prospective trade agreement.
Speaking on LBC radio, the Labour MP for Croydon West commented on the trade negotiations:
“Trade discussions are progressing; beyond that, I cannot provide extensive details currently. However, we are optimistic regarding our position and the nature of ongoing conversations.
“The Secretary of State [Jonathan Reynolds] is in productive dialogue with his counterparts, suggesting a viable agreement is attainable.
“While the timeline for finalizing such an agreement remains uncertain, the Vice President’s encouraging stance on negotiations is undoubtedly a positive indication.”
JD Vance: UK-US Trade Deal ‘Likely’ Under Trump, Vice President Suggests
US Vice President JD Vance has indicated a strong possibility of the United States and the United Kingdom achieving a “great” trade agreement.
Speaking with Unherd in an interview, Vance communicated to Sohrab Ahmari the US perspective on prospective trade relations, stating:
“Our collaboration with Keir Starmer’s administration is indeed intensive. The President harbors genuine affection for the UK, a sentiment that encompassed Queen Elizabeth and now extends to King Charles. It’s a truly significant partnership, reinforced by the President’s substantial business engagements within the UK.
“But the relationship’s depth surpasses purely transactional elements. A profound cultural alignment exists, reflecting America’s foundational Anglo-Saxon character. Therefore, I am quite confident in the likelihood of reaching a mutually beneficial and substantial agreement.”
These comments follow closely on the heels of the current administration’s imposition of a 10% across-the-board tariff on UK imports, with steeper tariffs applying to sectors like automobile manufacturing.
Minister Responds to Latest Employment Figures
Minister for the Department for Work and Pensions, Alison McGovern, has addressed the latest employment statistics showing a decrease of 78,000 in the number of UK payrolled workers.
The Labour MP for Birkenhead responded to the data release:
“We are committed to revitalizing Britain’s workforce through our transformative agenda. This includes comprehensive job center reforms, the creation of quality employment opportunities, skills enhancement initiatives, a transition towards net-zero emissions, and the most significant advancements in workplace rights in a generation.
“This month marks the rollout of localized strategies aimed at tackling the underlying causes of economic inactivity, as we prioritize the nation’s health and return to work. These initiatives are supported by a £125 million investment allocation.
“Crucially, real wages continue to rise and the implementation of the National Living Wage this month will further bolster the earnings of working individuals and elevate living standards, as part of our broader plan for progress.”
ONS data indicates a 5.9% increase in wages in the three months to February, while the unemployment rate remains at 4.4%.
Lib Dem Leader Urges Stronger Government Response to Hong Kong Incident
Liberal Democrat leader Ed Davey is campaigning in Cambridgeshire today ahead of the May local elections and is maintaining pressure on the UK government following the denial of entry to Hong Kong for Wera Hobhouse.
In a statement released last night, Davey highlighted that responses from Chinese officials suggest “no justification for the unacceptable treatment of my colleague Wera Hobhouse will be provided.” He asserted, “This cannot be disregarded.”
He elaborated:
“Denying a British Parliamentarian entry to Hong Kong for a private family visit, without offering any explanation, is a blatant disrespect to UK-China diplomatic relations. It also casts a pall over all UK politicians advocating for freedom and democracy. Seeking an official statement elucidating the Chinese authorities’ rationale for this action is therefore imperative.
“It’s increasingly evident that Chinese authorities are unwilling to cooperate on this matter. The Foreign Secretary must take decisive action by personally summoning the Chinese ambassador to demand a clear and comprehensive account of why Wera Hobhouse was denied entry.”
UK Politics: Tuesday’s Briefing
Good morning and welcome to Tuesday’s live coverage of UK politics. Here’s a summary of the day’s main developments:
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British Steel: Business and Trade Minister Sarah Jones reiterated that funds to rescue British Steel are already budgeted. The government prefers a private sector partner over nationalization.
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Chinese Investment Review: Senior Labour figures urge a review of Chinese investment in UK infrastructure amidst the British Steel crisis.
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Business Confidence: A recent survey indicates UK business confidence has declined to its lowest point in over two years.
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Hillsborough Anniversary: Today marks the 36th anniversary of the Hillsborough disaster. Labour faces criticism for not enacting the Hillsborough Law as promised.
Campaigning for local elections in England continues, with Ed Davey in Cambridgeshire and Nigel Farage scheduled to deliver a campaign speech in the north east.
Martin Belam is your host today. Contact me at [email protected] for any corrections or omissions.