1 00:00:02,520 --> 00:00:08,760 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. Let's maybe start with 2 00:00:09,440 --> 00:00:10,319 Speaker 1: the news of the week. 3 00:00:11,240 --> 00:00:13,960 Speaker 2: You know, the Prime Minister Stromer and others are rebuking 4 00:00:14,440 --> 00:00:16,840 Speaker 2: Donald Trump and saying he's wrong, and yet they're still 5 00:00:16,880 --> 00:00:19,640 Speaker 2: trying to stop him escalating. I mean, can you really 6 00:00:19,680 --> 00:00:21,120 Speaker 2: have it both ways or is. 7 00:00:21,079 --> 00:00:22,840 Speaker 1: Now the time to go strong against him? 8 00:00:23,280 --> 00:00:26,920 Speaker 3: We absolutely want to de escalate. The future of Greenland 9 00:00:27,000 --> 00:00:29,840 Speaker 3: is for the people of Greenland. But the message that 10 00:00:29,920 --> 00:00:33,120 Speaker 3: I've come here with this week in Davos is that 11 00:00:33,920 --> 00:00:37,520 Speaker 3: I missed all the uncertainty and instability in the world. 12 00:00:38,479 --> 00:00:42,240 Speaker 3: Britain's plan for economic growth, built on the platform stability, 13 00:00:42,280 --> 00:00:45,040 Speaker 3: investment and trade, is actually going very well. We've had 14 00:00:45,120 --> 00:00:50,080 Speaker 3: six intra straight cuts since I became Chancellor of the Exchequer. 15 00:00:50,280 --> 00:00:52,800 Speaker 3: Inflation is coming down, the Bank of England expected to 16 00:00:52,840 --> 00:00:56,240 Speaker 3: get back to target in the next couple of months. 17 00:00:56,640 --> 00:01:02,120 Speaker 3: And we've done trade deals with India with Career, which 18 00:01:02,400 --> 00:01:08,120 Speaker 3: improving our trading relations with Europe. And despite challenges at 19 00:01:08,120 --> 00:01:10,759 Speaker 3: the moment, we've secured a trade deal with the US 20 00:01:10,840 --> 00:01:13,400 Speaker 3: as well, which means we've got lower tariffs than pretty 21 00:01:13,480 --> 00:01:14,360 Speaker 3: much anywhere in the world. 22 00:01:14,520 --> 00:01:17,399 Speaker 2: I mean, you know, President Trump has gone after your 23 00:01:17,400 --> 00:01:19,200 Speaker 2: starmer also on the sale of an island, which he 24 00:01:19,280 --> 00:01:23,120 Speaker 2: previously approved. So how do you characterize relationships between the 25 00:01:23,160 --> 00:01:23,800 Speaker 2: two right now? 26 00:01:24,800 --> 00:01:28,320 Speaker 3: They're very good. I mean, look, no one wants to 27 00:01:28,400 --> 00:01:32,039 Speaker 3: see what's happening at the moment in terms of Greenland. 28 00:01:32,800 --> 00:01:37,720 Speaker 3: You know, recognize what the President said last night, you know, 29 00:01:37,760 --> 00:01:41,240 Speaker 3: criticizing decisions of a number of leaders, but previously the 30 00:01:41,400 --> 00:01:46,360 Speaker 3: US administration, including Centre of State Rubio, have supported what 31 00:01:46,480 --> 00:01:51,120 Speaker 3: is happening in Diego Garcia because it's enabling the UK 32 00:01:51,280 --> 00:01:54,600 Speaker 3: US military basis to stay open and to continue the 33 00:01:54,680 --> 00:01:58,080 Speaker 3: vital work they do there for decades to come. And 34 00:01:58,160 --> 00:02:01,880 Speaker 3: so you know, we're confident that that is the right 35 00:02:01,920 --> 00:02:04,360 Speaker 3: decision and has had the support of the US administration. 36 00:02:04,560 --> 00:02:06,680 Speaker 2: But Jesse, if we had a level of anxiousness in 37 00:02:07,280 --> 00:02:11,160 Speaker 2: Davos right now would be like through the roof. And 38 00:02:11,200 --> 00:02:13,839 Speaker 2: there's a lot of opinions saying, look are the UK 39 00:02:14,160 --> 00:02:18,600 Speaker 2: and you sleep walking into disaster right now because they 40 00:02:18,639 --> 00:02:21,160 Speaker 2: were blind sided about what to do with Greenland. 41 00:02:21,240 --> 00:02:23,160 Speaker 1: Like what's your response to those criticisms. 42 00:02:23,800 --> 00:02:27,560 Speaker 3: Well, Denmark is a member of NATO, very close ally 43 00:02:27,680 --> 00:02:30,680 Speaker 3: of the UK and has been a very close ally 44 00:02:31,040 --> 00:02:35,760 Speaker 3: of the United States. Everybody recognizes the importance of the 45 00:02:35,880 --> 00:02:40,000 Speaker 3: Arctic and the High North, and also the challenges that 46 00:02:40,760 --> 00:02:44,720 Speaker 3: we face the Western world, NATO faces in that part 47 00:02:44,760 --> 00:02:47,920 Speaker 3: of the world. We've just done a big deal with 48 00:02:48,000 --> 00:02:52,720 Speaker 3: Norway to sell frigates to them, reflecting those sorts of threats. 49 00:02:52,720 --> 00:02:55,600 Speaker 3: So no one is naive around the threats in the 50 00:02:55,720 --> 00:02:59,240 Speaker 3: Arctic and the High North. The question is how to 51 00:02:59,280 --> 00:03:02,640 Speaker 3: face into those challenges, and we firmly believe in the 52 00:03:02,760 --> 00:03:07,440 Speaker 3: UK and across Europe that we do that by NATO allies, 53 00:03:07,480 --> 00:03:11,680 Speaker 3: by friends, working together to secure the best outcomes, not 54 00:03:13,000 --> 00:03:17,320 Speaker 3: unilaterally making decisions about another country. 55 00:03:17,840 --> 00:03:19,680 Speaker 1: What are the risks if this escalates? 56 00:03:19,919 --> 00:03:22,440 Speaker 2: Is it to the economy or does the UK? And 57 00:03:22,440 --> 00:03:25,800 Speaker 2: you're worriy about intelligence sharing with the US and Ukraine. 58 00:03:25,520 --> 00:03:29,200 Speaker 3: But all of our focus is on de escalation, not 59 00:03:29,560 --> 00:03:34,320 Speaker 3: in worst case scenarios. We have worked incredibly closely with 60 00:03:34,360 --> 00:03:37,800 Speaker 3: President Trump the last year because we believe it's in 61 00:03:37,920 --> 00:03:43,080 Speaker 3: our UK national interest to do so. The strategic relationship 62 00:03:43,160 --> 00:03:45,960 Speaker 3: between the US and the UK, the military and strategic 63 00:03:46,080 --> 00:03:49,840 Speaker 3: partnership between our countries is more important than the partnership 64 00:03:49,840 --> 00:03:53,440 Speaker 3: between any two countries in the world. And it's very 65 00:03:53,440 --> 00:03:57,440 Speaker 3: important for safety and security of the Western world. That 66 00:03:57,680 --> 00:04:02,200 Speaker 3: continues and we're determined that it will will do so. Similarly, 67 00:04:02,480 --> 00:04:05,680 Speaker 3: the fact that we were able last year to secure 68 00:04:05,760 --> 00:04:09,720 Speaker 3: the Economic Partnership deal with the US and we continue 69 00:04:09,760 --> 00:04:15,480 Speaker 3: work on the Transatlantic markets, work that we're doing at 70 00:04:15,520 --> 00:04:19,160 Speaker 3: the moment to make it easier for our capital markets 71 00:04:19,160 --> 00:04:22,159 Speaker 3: to be better integrated and firms listed in the UK 72 00:04:22,279 --> 00:04:26,159 Speaker 3: and the US raising finance in each other's jurisdictions, greater 73 00:04:26,680 --> 00:04:29,280 Speaker 3: collaboration when it comes to digital assets. All of that 74 00:04:29,400 --> 00:04:31,760 Speaker 3: is in the UK's national interest and will continue to 75 00:04:31,760 --> 00:04:36,159 Speaker 3: pursue our national interest vigorously. But I don't think it 76 00:04:36,200 --> 00:04:42,159 Speaker 3: is anyone's in anyone's interests to escalate tensions or to 77 00:04:42,720 --> 00:04:46,520 Speaker 3: allow rhetoric to be a substitute for hard work and diplomacy. 78 00:04:46,600 --> 00:04:48,520 Speaker 2: But you think to trade deal stands because at the 79 00:04:48,520 --> 00:04:51,280 Speaker 2: moment there is you know, wild speculation about whether everything 80 00:04:51,279 --> 00:04:54,679 Speaker 2: needs negotiating, whether you know President Trump goes really hard. 81 00:04:54,920 --> 00:04:56,280 Speaker 1: I mean, how do you model this. 82 00:04:56,279 --> 00:04:59,320 Speaker 3: Or was just urge people to keep call heads Okay, 83 00:04:59,520 --> 00:05:01,880 Speaker 3: I mean that's what we did all through last year 84 00:05:01,920 --> 00:05:04,920 Speaker 3: and it actually served us pretty well. And whilst trade 85 00:05:04,960 --> 00:05:06,919 Speaker 3: barriers are going up around the world at the moment. 86 00:05:06,920 --> 00:05:10,800 Speaker 3: We can all see that in the last year barriers 87 00:05:10,839 --> 00:05:15,760 Speaker 3: to trade with the UK have fallen. We've secured a 88 00:05:15,920 --> 00:05:20,119 Speaker 3: comprehensive trade deal with India which will come into force 89 00:05:20,240 --> 00:05:23,760 Speaker 3: in the next few months, just taking legislation through both 90 00:05:23,800 --> 00:05:30,479 Speaker 3: of our parliaments to secure that includes trade in services, 91 00:05:31,320 --> 00:05:36,359 Speaker 3: support for exports and also around government procurement. That's a 92 00:05:36,440 --> 00:05:40,800 Speaker 3: huge deal. The deal with Career, one of the fastest 93 00:05:40,839 --> 00:05:43,920 Speaker 3: growing economies as well in the G twenty is very 94 00:05:43,920 --> 00:05:47,880 Speaker 3: important for the UK. But most important probably is the 95 00:05:47,920 --> 00:05:51,480 Speaker 3: trade with our nearest neighbors and trading partners in the EU, 96 00:05:51,600 --> 00:05:55,520 Speaker 3: which was damaged after leaving the EU voting to leave 97 00:05:55,560 --> 00:05:59,800 Speaker 3: the EU in twenty sixteen. We are now fixing that 98 00:06:00,440 --> 00:06:05,560 Speaker 3: by improving trade relations and corporation with our closest allies 99 00:06:05,560 --> 00:06:06,680 Speaker 3: and neighbors. 100 00:06:06,360 --> 00:06:07,960 Speaker 1: And I want to get back to the UNI. Second. 101 00:06:08,320 --> 00:06:10,800 Speaker 2: Governor Bailey though, said that you know, he worries about 102 00:06:10,880 --> 00:06:13,760 Speaker 2: also a President Trump's attax on the FED and that 103 00:06:13,800 --> 00:06:16,200 Speaker 2: could create shark waves for the UK. Do you agree 104 00:06:16,200 --> 00:06:16,480 Speaker 2: with that. 105 00:06:17,640 --> 00:06:21,160 Speaker 3: I think that people recognize that certainly with this government 106 00:06:21,160 --> 00:06:24,480 Speaker 3: and with me as Chancellor, there's huge respect for independent 107 00:06:24,560 --> 00:06:28,440 Speaker 3: economic institutions, whether that is the Bank of England or 108 00:06:28,520 --> 00:06:31,599 Speaker 3: the Office of Budget Responsibility. One of the reasons why 109 00:06:31,680 --> 00:06:37,760 Speaker 3: the UK has been you know, so has had challenging 110 00:06:37,800 --> 00:06:41,680 Speaker 3: economic times the last few years is because the previous 111 00:06:41,720 --> 00:06:46,280 Speaker 3: Conservative government, particularly under Liz Tras, both played fast and 112 00:06:46,360 --> 00:06:49,160 Speaker 3: loose with the public finances but also undermine the economic 113 00:06:49,240 --> 00:06:54,039 Speaker 3: institutions that make Britain have made Britain a safe and 114 00:06:54,040 --> 00:06:58,080 Speaker 3: secure place to invest. We're undoing that damage, working closely 115 00:06:58,160 --> 00:07:03,800 Speaker 3: with the independent Economic institution, but respecting their independence, and 116 00:07:04,040 --> 00:07:09,479 Speaker 3: that collaboration and fiscal policy supporting monetary policy has enabled 117 00:07:09,520 --> 00:07:12,480 Speaker 3: those six cuts in interest rates, taking rates down to 118 00:07:12,600 --> 00:07:16,280 Speaker 3: three point seventy five percent. It's the fastest speed of 119 00:07:16,360 --> 00:07:19,440 Speaker 3: rate reduction in the UK in seventeen years, and that's 120 00:07:19,440 --> 00:07:23,320 Speaker 3: only possible because of the stability that we've returned to 121 00:07:23,320 --> 00:07:26,200 Speaker 3: the economy and the decisions they've made on fiscal consolidation, 122 00:07:26,640 --> 00:07:30,000 Speaker 3: and the IMF say that amongst developed economies we have 123 00:07:30,040 --> 00:07:32,640 Speaker 3: got the fastest pace of fiscal consolidation over the next 124 00:07:32,680 --> 00:07:36,680 Speaker 3: few years. That gives investors confidence around the stability in 125 00:07:36,720 --> 00:07:39,880 Speaker 3: the UK, our grip on the public finances and our 126 00:07:39,880 --> 00:07:40,680 Speaker 3: group on inflation. 127 00:07:40,920 --> 00:07:43,040 Speaker 1: So there's no worry about central banking dependence. 128 00:07:43,080 --> 00:07:47,040 Speaker 2: That could also impact or inspire maybe some of the 129 00:07:47,080 --> 00:07:50,280 Speaker 2: opposition in the UK were they to come to power. 130 00:07:51,000 --> 00:07:54,160 Speaker 3: Well, look, we won a massive majority just a year 131 00:07:54,200 --> 00:07:55,920 Speaker 3: and a half ago. We have three and a half 132 00:07:56,000 --> 00:08:00,640 Speaker 3: years remaining in our term in office, and that our 133 00:08:00,760 --> 00:08:05,280 Speaker 3: economic plan to grow the economy with the stability return 134 00:08:05,320 --> 00:08:08,560 Speaker 3: to the economy, bringing investment in global investment as well 135 00:08:08,640 --> 00:08:12,800 Speaker 3: as unlocking domestic investment is the right plan. And in 136 00:08:12,840 --> 00:08:16,160 Speaker 3: the next few months, as inflation returns to target with 137 00:08:16,320 --> 00:08:20,400 Speaker 3: lower interest rates which are benefiting both households and businesses, 138 00:08:20,960 --> 00:08:25,000 Speaker 3: that we will see the fruits of that in growth 139 00:08:25,040 --> 00:08:26,240 Speaker 3: and higher living standards. 140 00:08:26,400 --> 00:08:28,200 Speaker 2: Chance, I don't know whether you're a meeting with Scott 141 00:08:28,200 --> 00:08:31,040 Speaker 2: Besson's the Treasury secretary here, whether or if you bump 142 00:08:31,040 --> 00:08:32,640 Speaker 2: into him and promenade. 143 00:08:32,400 --> 00:08:36,800 Speaker 3: Well ill with Scott last week in Washington. I'm seeing 144 00:08:37,559 --> 00:08:41,840 Speaker 3: Secretary Lotnik later today. Our Prime minister spoke to President 145 00:08:42,080 --> 00:08:45,120 Speaker 3: Trump just over the weekend. You know, as you would expect, 146 00:08:45,440 --> 00:08:49,000 Speaker 3: there are very close relations between our country at all levels. 147 00:08:49,240 --> 00:08:51,360 Speaker 2: See here and Davis yours have an announcement which is 148 00:08:51,400 --> 00:08:54,720 Speaker 2: basically helping out with visas tell Us a little bit 149 00:08:54,720 --> 00:08:56,559 Speaker 2: about that, and do you worry that it's going to 150 00:08:56,600 --> 00:08:58,000 Speaker 2: be drowned in everything. 151 00:08:57,640 --> 00:08:59,400 Speaker 1: Else that's going on. Just a little bit of news 152 00:08:59,440 --> 00:09:00,640 Speaker 1: that we have out there. 153 00:09:00,920 --> 00:09:05,679 Speaker 3: So I believe in free and fair trade. I believe 154 00:09:05,880 --> 00:09:11,000 Speaker 3: in the benefits to businesses and also consumers of open economies. 155 00:09:11,480 --> 00:09:14,280 Speaker 3: Economies that are open to trade, open to investment, and 156 00:09:14,360 --> 00:09:18,640 Speaker 3: open to talent have always been the most successful economies. 157 00:09:18,800 --> 00:09:22,160 Speaker 3: And I want Britain, even in a world where others 158 00:09:22,200 --> 00:09:25,040 Speaker 3: are putting up barriers to trade and investment and talent, 159 00:09:25,360 --> 00:09:29,600 Speaker 3: for Britain to be breaking down those barriers. And we 160 00:09:29,880 --> 00:09:35,240 Speaker 3: are announcing today further changes in our global talent routes 161 00:09:35,280 --> 00:09:39,600 Speaker 3: into the UK for three particular types of visa. The 162 00:09:39,640 --> 00:09:44,439 Speaker 3: first is for foreign businesses looking to expand their footprint 163 00:09:44,760 --> 00:09:48,400 Speaker 3: in the UK, working with them so that they can 164 00:09:48,400 --> 00:09:52,200 Speaker 3: bring in talent as they expand their footprint. Second for 165 00:09:52,840 --> 00:09:58,800 Speaker 3: UK businesses in our industrial strategy sectors, which includes financial services, 166 00:09:59,040 --> 00:10:05,600 Speaker 3: business services, creative industries, clean energy, advanced manufacturing, defense, et cetera. 167 00:10:06,720 --> 00:10:10,000 Speaker 3: For those businesses, if they are bringing in talent from 168 00:10:10,040 --> 00:10:15,439 Speaker 3: overseas into the UK, their visas will be The fees 169 00:10:15,520 --> 00:10:18,319 Speaker 3: for those visas will be waived. And then the third 170 00:10:18,360 --> 00:10:23,920 Speaker 3: announcement today is that for really great talent looking to 171 00:10:23,960 --> 00:10:28,880 Speaker 3: come to UK universities again, we'll waive those visas as 172 00:10:28,960 --> 00:10:32,600 Speaker 3: well as a specific scheme for people gold medalists in 173 00:10:33,000 --> 00:10:36,200 Speaker 3: the maths olympiad offering a number of scholarships to UK 174 00:10:36,400 --> 00:10:39,800 Speaker 3: universities for those people, because we want Britain to be 175 00:10:39,840 --> 00:10:43,200 Speaker 3: a magnet for global talent in the same way we 176 00:10:43,240 --> 00:10:45,040 Speaker 3: want it to be the best place in the world 177 00:10:45,480 --> 00:10:47,320 Speaker 3: to trade from and to invest. 178 00:10:47,000 --> 00:10:50,200 Speaker 2: In chandswer there's a growing clamor and labor circles, even 179 00:10:50,400 --> 00:10:53,080 Speaker 2: from some of your own Cabinet, for the UK to 180 00:10:53,160 --> 00:10:55,360 Speaker 2: join a customs union with the US that on the. 181 00:10:55,360 --> 00:10:59,480 Speaker 3: Cord No, it was very clear in our manifesto that 182 00:11:00,080 --> 00:11:03,760 Speaker 3: we wouldn't be rejoining the Single Market, the Customers Union, 183 00:11:04,160 --> 00:11:08,800 Speaker 3: or bringing back free movement of labor. But what we 184 00:11:09,280 --> 00:11:12,839 Speaker 3: have done already is brought back the Erasmus scheme which 185 00:11:12,920 --> 00:11:15,920 Speaker 3: enables young people both from the UK to go and 186 00:11:16,240 --> 00:11:19,199 Speaker 3: study at European universities and young people from Europe to 187 00:11:19,200 --> 00:11:22,680 Speaker 3: come and study at our brilliant universities in the UK. 188 00:11:23,320 --> 00:11:27,600 Speaker 3: We also have agreements in principle from last May around 189 00:11:29,080 --> 00:11:33,040 Speaker 3: the UK doing a food and farming deal, to reduce 190 00:11:34,120 --> 00:11:37,840 Speaker 3: barriers to trade at the border around electricity trading and 191 00:11:38,040 --> 00:11:43,840 Speaker 3: energy trading, as well as some form of youth mobility 192 00:11:44,480 --> 00:11:47,280 Speaker 3: within the European Union and the United Kingdom. So we're 193 00:11:47,320 --> 00:11:50,120 Speaker 3: making progress and all of that, looking to have another 194 00:11:50,160 --> 00:11:56,960 Speaker 3: summit this year where we can mark ourselves on progress 195 00:11:57,000 --> 00:12:01,160 Speaker 3: against those ambitions and set new ambitions, because that summit 196 00:12:01,240 --> 00:12:04,120 Speaker 3: last year was just the start of improving relations between 197 00:12:04,160 --> 00:12:07,640 Speaker 3: the UK and the U and the EU. And I 198 00:12:07,640 --> 00:12:10,960 Speaker 3: would just say that, you know, these sort of times 199 00:12:11,000 --> 00:12:15,520 Speaker 3: when others are putting up barriers to trade, what Britain 200 00:12:15,600 --> 00:12:18,480 Speaker 3: is arguing for and what I believe in strongly is 201 00:12:18,480 --> 00:12:21,800 Speaker 3: that those of us who believe in free and fair 202 00:12:21,880 --> 00:12:26,559 Speaker 3: trade should practice what we preach and reduce barriers between ourselves. 203 00:12:27,000 --> 00:12:30,640 Speaker 3: That goes to the UK, the EU, Canada and other 204 00:12:31,080 --> 00:12:34,840 Speaker 3: allies around the world. And we are determined to lead 205 00:12:34,880 --> 00:12:37,360 Speaker 3: from the front in that we've already secured trade deals 206 00:12:37,360 --> 00:12:39,680 Speaker 3: with countries around the world. We want to do more 207 00:12:40,280 --> 00:12:41,040 Speaker 3: in the months to come. 208 00:12:41,120 --> 00:12:43,480 Speaker 2: But I mean mathematically, just you know, if you leave 209 00:12:43,480 --> 00:12:47,000 Speaker 2: partics to unsaide again, rejoining the Customer Union could be 210 00:12:47,000 --> 00:12:49,760 Speaker 2: more beneficial so do you see future at any point 211 00:12:49,840 --> 00:12:52,000 Speaker 2: where the UK goes back again that we can't. 212 00:12:51,800 --> 00:12:54,920 Speaker 3: Go back in time. And since we left the EU, 213 00:12:55,000 --> 00:12:57,480 Speaker 3: we have done trade deals with India, with the US 214 00:12:57,480 --> 00:13:01,040 Speaker 3: with career and obviously you would lose some of the 215 00:13:01,040 --> 00:13:03,280 Speaker 3: benefits of those trade deals if you were to re 216 00:13:03,480 --> 00:13:07,640 Speaker 3: enter a customs union, and things like the benefits of 217 00:13:08,360 --> 00:13:12,319 Speaker 3: the deal we did with the US for our automotive sector. 218 00:13:12,800 --> 00:13:15,280 Speaker 3: The deal that we have with India is better than 219 00:13:15,679 --> 00:13:19,600 Speaker 3: the deal that any other country has with India. So 220 00:13:19,840 --> 00:13:21,800 Speaker 3: I think you have to consider all of these things 221 00:13:21,840 --> 00:13:24,359 Speaker 3: in the round. I don't think we need to return 222 00:13:24,800 --> 00:13:28,840 Speaker 3: to the Customs Union to seize greater benefits of free 223 00:13:28,880 --> 00:13:33,079 Speaker 3: and fair trade. And we are working peace by piece, 224 00:13:33,120 --> 00:13:35,880 Speaker 3: but with a strategic goal in mind, which is to 225 00:13:35,920 --> 00:13:38,560 Speaker 3: make it easier for British businesses to sell into European 226 00:13:38,640 --> 00:13:42,560 Speaker 3: markets and for European businesses to sell in into British markets. 227 00:13:42,600 --> 00:13:46,679 Speaker 3: And when the barriers to trade in other markets are 228 00:13:46,679 --> 00:13:50,160 Speaker 3: going up, we want to create more opportunities for our 229 00:13:50,200 --> 00:13:53,360 Speaker 3: businesses to trade with other countries around the world. 230 00:13:53,880 --> 00:13:55,800 Speaker 2: There is of course big news about a new embassy 231 00:13:56,000 --> 00:13:59,960 Speaker 2: Chinese embassy in London today. How do you see actually 232 00:14:00,160 --> 00:14:03,280 Speaker 2: relationship with the UK and China evolving. 233 00:14:03,920 --> 00:14:10,280 Speaker 3: Yeah, so we've given planning permission today for a new embassy. 234 00:14:10,280 --> 00:14:13,440 Speaker 3: Obviously China already has an embassy in London. This will 235 00:14:13,480 --> 00:14:19,240 Speaker 3: be a new embassy and move. But you know, if 236 00:14:19,280 --> 00:14:21,280 Speaker 3: you just sort of take a step back, Britain has 237 00:14:21,360 --> 00:14:24,040 Speaker 3: embassies in almost every country around the world, and almost 238 00:14:24,080 --> 00:14:27,320 Speaker 3: every country in the world has an embassy in London. 239 00:14:27,360 --> 00:14:32,000 Speaker 3: They are absolutely vital for diplomatic relations and also for 240 00:14:32,080 --> 00:14:35,040 Speaker 3: resolving tensions. And so it is right that China has 241 00:14:35,280 --> 00:14:38,080 Speaker 3: an embassy in London in the same way that it's 242 00:14:38,120 --> 00:14:43,320 Speaker 3: important and right that the UK has an embassy in Beijing. 243 00:14:43,360 --> 00:14:45,920 Speaker 3: And I was at our embassy in Beijing just last 244 00:14:46,040 --> 00:14:51,720 Speaker 3: January when we restarted the economic and financial dialogue with China. 245 00:14:51,960 --> 00:14:53,960 Speaker 3: It was the first time that we'd had an economic 246 00:14:53,960 --> 00:14:56,960 Speaker 3: and financial dialogue between our countries for six years. And 247 00:14:57,000 --> 00:15:00,720 Speaker 3: whilst other countries had been securing benefits for their financial 248 00:15:00,720 --> 00:15:06,840 Speaker 3: services sectors in growing markets, in China, we refused to engage. 249 00:15:06,880 --> 00:15:09,520 Speaker 3: And that was the wrong thing to do. It was 250 00:15:09,560 --> 00:15:12,720 Speaker 3: not in Britain's interest and that's why we changed that approach. 251 00:15:13,280 --> 00:15:16,200 Speaker 3: They hosted the Chinese hosted the Economic and Financial diagalog 252 00:15:16,440 --> 00:15:20,320 Speaker 3: Dialogue last year. We secured significant benefits for UK businesses 253 00:15:20,480 --> 00:15:24,040 Speaker 3: and we'll be hosting the next Economic and Financial Dialogue 254 00:15:24,200 --> 00:15:27,520 Speaker 3: with our Chinese counterparts in the UK this year. 255 00:15:28,000 --> 00:15:30,280 Speaker 2: If the US continues being a little bit, you know, 256 00:15:30,360 --> 00:15:33,120 Speaker 2: not a little bit actually belligerent with Europe, do you 257 00:15:33,160 --> 00:15:34,920 Speaker 2: see the UK being getting. 258 00:15:34,680 --> 00:15:35,920 Speaker 1: Much much closer to China. 259 00:15:36,160 --> 00:15:39,520 Speaker 3: Well, let's just look at the numbers. The US trades 260 00:15:39,600 --> 00:15:41,840 Speaker 3: more as a share of GDP with China than the 261 00:15:41,960 --> 00:15:46,240 Speaker 3: UK does. Almost every big country in Europe trades more 262 00:15:46,280 --> 00:15:50,160 Speaker 3: with China than the UK does, and that's because the 263 00:15:50,280 --> 00:15:55,560 Speaker 3: UK under successive conservative governments retreated from the global sphere 264 00:15:55,600 --> 00:15:57,920 Speaker 3: for a number of years and that was a mistake 265 00:15:57,960 --> 00:16:01,480 Speaker 3: and we lost out on growth and trade as a 266 00:16:01,520 --> 00:16:04,480 Speaker 3: result of it. We are pursuing a very different approach, 267 00:16:04,520 --> 00:16:09,720 Speaker 3: which is to relentlessly focus on our national interest, and 268 00:16:09,760 --> 00:16:14,280 Speaker 3: our national interest means tackling the cost of living and 269 00:16:14,320 --> 00:16:17,040 Speaker 3: growing our economy with more good jobs paying decent wages 270 00:16:18,400 --> 00:16:20,760 Speaker 3: in all parts of our country. And we only achieve 271 00:16:20,800 --> 00:16:23,920 Speaker 3: that if we bring more investment in international and domestic 272 00:16:24,360 --> 00:16:28,840 Speaker 3: and if we achieve more opportunities for firms in Britain, 273 00:16:29,120 --> 00:16:32,760 Speaker 3: employing people in Britain to then sell the excellent goods 274 00:16:32,760 --> 00:16:35,440 Speaker 3: and services that we produce in the UK all around 275 00:16:35,440 --> 00:16:36,880 Speaker 3: the world. And that's exactly what we're doing. 276 00:16:37,280 --> 00:16:37,640 Speaker 1: Chansfer. 277 00:16:37,680 --> 00:16:39,920 Speaker 2: Back in Westminster, a lot of people in Labor are 278 00:16:39,920 --> 00:16:42,120 Speaker 2: thinking about a challenge to your leadership and to your 279 00:16:42,160 --> 00:16:45,040 Speaker 2: Starmer's leadership in the coming months, especially if the local 280 00:16:45,040 --> 00:16:48,560 Speaker 2: elections are very bad. What will you tell investors here 281 00:16:48,600 --> 00:16:51,280 Speaker 2: in Davos who might be worried about are more left 282 00:16:51,320 --> 00:16:53,560 Speaker 2: wing a PM and Chancellor getting in. 283 00:16:54,320 --> 00:16:57,120 Speaker 3: I really don't think that people need to worry about that. 284 00:16:57,280 --> 00:17:01,040 Speaker 3: Kere one and massive majority in Parliament and the Parliamentary 285 00:17:01,120 --> 00:17:04,920 Speaker 3: Labor Party, the cabinet want the Prime Minister to succeed. 286 00:17:05,720 --> 00:17:09,480 Speaker 3: Even if someone did have the stupid idea of challenging 287 00:17:09,960 --> 00:17:12,720 Speaker 3: the prime minister is incredibly difficult to do so. And 288 00:17:12,760 --> 00:17:15,280 Speaker 3: I have every confidence that Kiir will continue to be 289 00:17:15,320 --> 00:17:18,199 Speaker 3: Prime Minister all through this term. I will continue to 290 00:17:18,200 --> 00:17:21,120 Speaker 3: be Chancellor and hopefully into the second term as well. 291 00:17:21,720 --> 00:17:24,879 Speaker 1: Nigel Faraj is arriving here in Davas. 292 00:17:25,040 --> 00:17:27,840 Speaker 2: What would Prime Minister Viros She's doing very well in 293 00:17:27,920 --> 00:17:29,520 Speaker 2: the polls mean for the UK economy? 294 00:17:30,680 --> 00:17:34,000 Speaker 3: Well I think it would be very bad loose for 295 00:17:34,400 --> 00:17:38,200 Speaker 3: the UK economy. Nigel Faraj believes in closed economies. He 296 00:17:38,280 --> 00:17:42,560 Speaker 3: does not believe in the UK being open for trade. 297 00:17:42,840 --> 00:17:49,640 Speaker 3: He sides with our adversaries rather than our friends, including 298 00:17:49,760 --> 00:17:55,760 Speaker 3: with Russia, and they're more in Ukraine. And in terms 299 00:17:55,840 --> 00:18:00,240 Speaker 3: of business, he was the cheerleader in chief of leading 300 00:18:00,400 --> 00:18:03,919 Speaker 3: the European Union. He's opposed every trade deal that this 301 00:18:03,960 --> 00:18:07,159 Speaker 3: government has done, including the deal with the US and 302 00:18:07,160 --> 00:18:10,520 Speaker 3: including the deal with India. He doesn't believe in an 303 00:18:10,560 --> 00:18:15,840 Speaker 3: independent central bank or those independent economic institutions which give 304 00:18:15,880 --> 00:18:19,520 Speaker 3: stability to the UK economy. And I do think that, 305 00:18:19,720 --> 00:18:25,199 Speaker 3: you know, businesses should without getting worried, should you know, 306 00:18:25,280 --> 00:18:28,840 Speaker 3: think about the consequences of that and not just sit 307 00:18:28,840 --> 00:18:29,560 Speaker 3: on the sidelines. 308 00:18:29,640 --> 00:18:32,360 Speaker 2: I mean, does having him here in Davos taking meetings, 309 00:18:32,560 --> 00:18:35,440 Speaker 2: I think ars meeting with possibly we don't have confirmation 310 00:18:35,520 --> 00:18:38,040 Speaker 2: the US delegation, does that overshadow some of the work 311 00:18:38,200 --> 00:18:39,760 Speaker 2: that you're trying to do with your delegation. 312 00:18:40,119 --> 00:18:43,600 Speaker 1: No, not at all. There's no and there's no plans. 313 00:18:43,680 --> 00:18:46,199 Speaker 3: He's got seven MP's in parliament France, and I know 314 00:18:46,200 --> 00:18:48,119 Speaker 3: that people want to get excited or maybe a couple more. 315 00:18:48,440 --> 00:18:51,960 Speaker 3: Who knows how many Tories have defected today. But you 316 00:18:52,000 --> 00:18:55,399 Speaker 3: know he's got a small number of MPs. He's lost 317 00:18:55,400 --> 00:18:58,080 Speaker 3: almost as many MPs as he's gained in this parliament 318 00:18:58,400 --> 00:19:02,240 Speaker 3: because he's incapable of working with others. I'm not worried 319 00:19:02,760 --> 00:19:05,919 Speaker 3: about Nigel Farrage. I believe that our plan is the 320 00:19:05,960 --> 00:19:08,800 Speaker 3: right one. We are improving the cost of living for 321 00:19:08,960 --> 00:19:12,360 Speaker 3: working people in Britain. We're bringing investment to Britain, inflation 322 00:19:12,440 --> 00:19:15,200 Speaker 3: and interest rates that are coming down this year. Last 323 00:19:15,240 --> 00:19:18,000 Speaker 3: year we had the second fastest growing economy in the 324 00:19:18,000 --> 00:19:21,000 Speaker 3: g seven. Our plan is the right one. It will 325 00:19:22,119 --> 00:19:25,520 Speaker 3: begin to reap dividends this year, especially as inflation gets 326 00:19:25,520 --> 00:19:29,040 Speaker 3: back to target and the benefits of those trade deals 327 00:19:29,280 --> 00:19:29,920 Speaker 3: begin to flow. 328 00:19:30,000 --> 00:19:32,280 Speaker 2: But there is a perception that he's gaining momentum because 329 00:19:32,280 --> 00:19:33,040 Speaker 2: of the defections. 330 00:19:33,840 --> 00:19:36,320 Speaker 3: So I mean, you know, you've got these people who 331 00:19:36,320 --> 00:19:38,520 Speaker 3: were defeated a year and a half ago in a 332 00:19:38,560 --> 00:19:44,520 Speaker 3: general election, Robert Jeneric Andrew Rossendale, the other people whose 333 00:19:44,600 --> 00:19:49,320 Speaker 3: names no one remembers, who lost the support of the 334 00:19:49,320 --> 00:19:53,199 Speaker 3: British public a year ago, who are now changing the 335 00:19:53,280 --> 00:19:58,520 Speaker 3: rests and think that that will change their fortunes it owns, 336 00:19:58,600 --> 00:20:00,800 Speaker 3: and I do believe that the British public will see 337 00:20:00,800 --> 00:20:02,720 Speaker 3: through that they kicked the Tories out for a reason. 338 00:20:02,880 --> 00:20:05,240 Speaker 3: They're not going to just re elect them because they're 339 00:20:05,240 --> 00:20:08,720 Speaker 3: now wearing a teal rosette rather than a blue one er. 340 00:20:08,760 --> 00:20:10,199 Speaker 2: There are a lot of questions people want to know 341 00:20:10,200 --> 00:20:12,760 Speaker 2: about taxes. I know you can't tell us about the 342 00:20:12,800 --> 00:20:14,760 Speaker 2: next budget. I don't know whether you think that this 343 00:20:15,400 --> 00:20:18,120 Speaker 2: new trade tensions could have an impact of the budget. 344 00:20:18,160 --> 00:20:21,280 Speaker 2: But holistically speaking, if you were to raise taxes again, 345 00:20:21,960 --> 00:20:24,880 Speaker 2: would you do it for wealth taxes or a general taxation. 346 00:20:25,119 --> 00:20:27,920 Speaker 3: We've just had a budget and what I was able 347 00:20:27,960 --> 00:20:30,680 Speaker 3: to do in that budget was to build a headroom 348 00:20:30,720 --> 00:20:33,280 Speaker 3: of twenty one points seven billion pounds, more than doubling 349 00:20:33,920 --> 00:20:38,080 Speaker 3: the headroom against our fiscal rules. I think that now 350 00:20:38,119 --> 00:20:40,920 Speaker 3: puts us in a very strong position that we will 351 00:20:40,920 --> 00:20:46,040 Speaker 3: not need to do more on that front. I'm not 352 00:20:46,080 --> 00:20:48,399 Speaker 3: going to be able to write future budgets today. The 353 00:20:48,440 --> 00:20:51,800 Speaker 3: world is a very uncertain place. But that increase in 354 00:20:51,880 --> 00:20:55,000 Speaker 3: the headroom was very much I think welcome by markets 355 00:20:55,160 --> 00:20:58,719 Speaker 3: and has given greater confidence to people that we can 356 00:20:58,760 --> 00:21:02,000 Speaker 3: have stability on a fiscal front. As well. In addition, 357 00:21:02,240 --> 00:21:05,760 Speaker 3: we've been really clear that the spring forecast from the 358 00:21:05,760 --> 00:21:09,480 Speaker 3: OBR will not be a fiscal event in the same 359 00:21:09,520 --> 00:21:11,800 Speaker 3: way that it has been in the past, and reform 360 00:21:11,840 --> 00:21:14,520 Speaker 3: of the Office of Budget Responsibility means that we can 361 00:21:14,600 --> 00:21:17,360 Speaker 3: now move to one major fiscal event a year, so 362 00:21:17,400 --> 00:21:21,359 Speaker 3: that you, Francine and others don't ask me every week 363 00:21:21,680 --> 00:21:25,840 Speaker 3: for a year what tax changes are planned. We don't 364 00:21:25,880 --> 00:21:30,280 Speaker 3: plan any tax changes in the spring, and a very 365 00:21:30,359 --> 00:21:33,280 Speaker 3: much hope after the headroom that we have built in 366 00:21:33,800 --> 00:21:38,960 Speaker 3: through difficult decisions on tax and spending that provides the 367 00:21:39,000 --> 00:21:40,080 Speaker 3: stability that we need. 368 00:21:40,320 --> 00:21:42,240 Speaker 1: Every week chanswer. I thought we were more tenacious. 369 00:21:42,240 --> 00:21:44,400 Speaker 2: I thought it was every day that we were asking 370 00:21:44,400 --> 00:21:46,280 Speaker 2: you what are. 371 00:21:46,200 --> 00:21:47,960 Speaker 1: You most looking forward to? In Davas we have one 372 00:21:47,960 --> 00:21:48,359 Speaker 1: more minute. 373 00:21:48,400 --> 00:21:50,640 Speaker 2: I mean, you know, we talk about disruption, sharks, there's 374 00:21:50,640 --> 00:21:52,800 Speaker 2: a lot about AI, but is there something what have 375 00:21:52,880 --> 00:21:53,639 Speaker 2: you come here to do? 376 00:21:53,840 --> 00:21:54,040 Speaker 1: Well? 377 00:21:54,080 --> 00:21:56,760 Speaker 3: This is my fourth time in Davos. I came twice 378 00:21:56,760 --> 00:22:03,040 Speaker 3: as Shadow Chancellor to set out the the opposition approach 379 00:22:03,119 --> 00:22:06,240 Speaker 3: to the economy. I learned a lot during those two 380 00:22:06,359 --> 00:22:10,880 Speaker 3: visits about what international investors were looking for in the UK. 381 00:22:11,240 --> 00:22:14,480 Speaker 3: I knew they wanted stability. I knew they wanted better 382 00:22:14,520 --> 00:22:17,720 Speaker 3: support to leverage in the private sector investment the cash 383 00:22:17,760 --> 00:22:20,400 Speaker 3: that was sitting there but wasn't coming to the UK 384 00:22:20,920 --> 00:22:23,600 Speaker 3: because of that uncertainty. And I know that they wanted 385 00:22:23,720 --> 00:22:29,480 Speaker 3: reform to how our economy works, planning reform, regulatory burdens, lifted, 386 00:22:30,200 --> 00:22:34,320 Speaker 3: better trade opportunities with countries around the world. That is 387 00:22:34,359 --> 00:22:38,040 Speaker 3: what we are delivering as a government now. I'm certainly 388 00:22:38,119 --> 00:22:40,000 Speaker 3: not claiming that the first year and a half in 389 00:22:40,040 --> 00:22:42,520 Speaker 3: office has been easy, or that every decision that we've 390 00:22:42,560 --> 00:22:45,400 Speaker 3: made has been one that's welcomed by business. But when 391 00:22:45,400 --> 00:22:47,800 Speaker 3: you look around the world, when you look at the 392 00:22:47,800 --> 00:22:50,800 Speaker 3: delegations from around the world this week, I hope people 393 00:22:50,840 --> 00:22:54,160 Speaker 3: see in Britain. I hope that businesses see in Britain 394 00:22:54,520 --> 00:22:57,159 Speaker 3: a country that has returned to the stability, that is 395 00:22:57,200 --> 00:23:02,119 Speaker 3: bringing investment, is changing how the economy works and is open, 396 00:23:02,240 --> 00:23:05,919 Speaker 3: open to business, open to trade, open to investment, and 397 00:23:05,960 --> 00:23:07,880 Speaker 3: as I set out today, open to talent as well.