WEBVTT - UK Chancellor Rachel Reeves Talks Trump Tariff Threats 0:00:02.520 --> 0:00:08.760 Bloomberg Audio Studios, podcasts, radio news. Let's maybe start with 0:00:09.440 --> 0:00:10.319 the news of the week. 0:00:11.240 --> 0:00:13.960 You know, the Prime Minister Stromer and others are rebuking 0:00:14.440 --> 0:00:16.840 Donald Trump and saying he's wrong, and yet they're still 0:00:16.880 --> 0:00:19.640 trying to stop him escalating. I mean, can you really 0:00:19.680 --> 0:00:21.120 have it both ways or is. 0:00:21.079 --> 0:00:22.840 Now the time to go strong against him? 0:00:23.280 --> 0:00:26.920 We absolutely want to de escalate. The future of Greenland 0:00:27.000 --> 0:00:29.840 is for the people of Greenland. But the message that 0:00:29.920 --> 0:00:33.120 I've come here with this week in Davos is that 0:00:33.920 --> 0:00:37.520 I missed all the uncertainty and instability in the world. 0:00:38.479 --> 0:00:42.240 Britain's plan for economic growth, built on the platform stability, 0:00:42.280 --> 0:00:45.040 investment and trade, is actually going very well. We've had 0:00:45.120 --> 0:00:50.080 six intra straight cuts since I became Chancellor of the Exchequer. 0:00:50.280 --> 0:00:52.800 Inflation is coming down, the Bank of England expected to 0:00:52.840 --> 0:00:56.240 get back to target in the next couple of months. 0:00:56.640 --> 0:01:02.120 And we've done trade deals with India with Career, which 0:01:02.400 --> 0:01:08.120 improving our trading relations with Europe. And despite challenges at 0:01:08.120 --> 0:01:10.759 the moment, we've secured a trade deal with the US 0:01:10.840 --> 0:01:13.400 as well, which means we've got lower tariffs than pretty 0:01:13.480 --> 0:01:14.360 much anywhere in the world. 0:01:14.520 --> 0:01:17.399 I mean, you know, President Trump has gone after your 0:01:17.400 --> 0:01:19.200 starmer also on the sale of an island, which he 0:01:19.280 --> 0:01:23.120 previously approved. So how do you characterize relationships between the 0:01:23.160 --> 0:01:23.800 two right now? 0:01:24.800 --> 0:01:28.320 They're very good. I mean, look, no one wants to 0:01:28.400 --> 0:01:32.039 see what's happening at the moment in terms of Greenland. 0:01:32.800 --> 0:01:37.720 You know, recognize what the President said last night, you know, 0:01:37.760 --> 0:01:41.240 criticizing decisions of a number of leaders, but previously the 0:01:41.400 --> 0:01:46.360 US administration, including Centre of State Rubio, have supported what 0:01:46.480 --> 0:01:51.120 is happening in Diego Garcia because it's enabling the UK 0:01:51.280 --> 0:01:54.600 US military basis to stay open and to continue the 0:01:54.680 --> 0:01:58.080 vital work they do there for decades to come. And 0:01:58.160 --> 0:02:01.880 so you know, we're confident that that is the right 0:02:01.920 --> 0:02:04.360 decision and has had the support of the US administration. 0:02:04.560 --> 0:02:06.680 But Jesse, if we had a level of anxiousness in 0:02:07.280 --> 0:02:11.160 Davos right now would be like through the roof. And 0:02:11.200 --> 0:02:13.839 there's a lot of opinions saying, look are the UK 0:02:14.160 --> 0:02:18.600 and you sleep walking into disaster right now because they 0:02:18.639 --> 0:02:21.160 were blind sided about what to do with Greenland. 0:02:21.240 --> 0:02:23.160 Like what's your response to those criticisms. 0:02:23.800 --> 0:02:27.560 Well, Denmark is a member of NATO, very close ally 0:02:27.680 --> 0:02:30.680 of the UK and has been a very close ally 0:02:31.040 --> 0:02:35.760 of the United States. Everybody recognizes the importance of the 0:02:35.880 --> 0:02:40.000 Arctic and the High North, and also the challenges that 0:02:40.760 --> 0:02:44.720 we face the Western world, NATO faces in that part 0:02:44.760 --> 0:02:47.920 of the world. We've just done a big deal with 0:02:48.000 --> 0:02:52.720 Norway to sell frigates to them, reflecting those sorts of threats. 0:02:52.720 --> 0:02:55.600 So no one is naive around the threats in the 0:02:55.720 --> 0:02:59.240 Arctic and the High North. The question is how to 0:02:59.280 --> 0:03:02.640 face into those challenges, and we firmly believe in the 0:03:02.760 --> 0:03:07.440 UK and across Europe that we do that by NATO allies, 0:03:07.480 --> 0:03:11.680 by friends, working together to secure the best outcomes, not 0:03:13.000 --> 0:03:17.320 unilaterally making decisions about another country. 0:03:17.840 --> 0:03:19.680 What are the risks if this escalates? 0:03:19.919 --> 0:03:22.440 Is it to the economy or does the UK? And 0:03:22.440 --> 0:03:25.800 you're worriy about intelligence sharing with the US and Ukraine. 0:03:25.520 --> 0:03:29.200 But all of our focus is on de escalation, not 0:03:29.560 --> 0:03:34.320 in worst case scenarios. We have worked incredibly closely with 0:03:34.360 --> 0:03:37.800 President Trump the last year because we believe it's in 0:03:37.920 --> 0:03:43.080 our UK national interest to do so. The strategic relationship 0:03:43.160 --> 0:03:45.960 between the US and the UK, the military and strategic 0:03:46.080 --> 0:03:49.840 partnership between our countries is more important than the partnership 0:03:49.840 --> 0:03:53.440 between any two countries in the world. And it's very 0:03:53.440 --> 0:03:57.440 important for safety and security of the Western world. That 0:03:57.680 --> 0:04:02.200 continues and we're determined that it will will do so. Similarly, 0:04:02.480 --> 0:04:05.680 the fact that we were able last year to secure 0:04:05.760 --> 0:04:09.720 the Economic Partnership deal with the US and we continue 0:04:09.760 --> 0:04:15.480 work on the Transatlantic markets, work that we're doing at 0:04:15.520 --> 0:04:19.160 the moment to make it easier for our capital markets 0:04:19.160 --> 0:04:22.159 to be better integrated and firms listed in the UK 0:04:22.279 --> 0:04:26.159 and the US raising finance in each other's jurisdictions, greater 0:04:26.680 --> 0:04:29.280 collaboration when it comes to digital assets. All of that 0:04:29.400 --> 0:04:31.760 is in the UK's national interest and will continue to 0:04:31.760 --> 0:04:36.159 pursue our national interest vigorously. But I don't think it 0:04:36.200 --> 0:04:42.159 is anyone's in anyone's interests to escalate tensions or to 0:04:42.720 --> 0:04:46.520 allow rhetoric to be a substitute for hard work and diplomacy. 0:04:46.600 --> 0:04:48.520 But you think to trade deal stands because at the 0:04:48.520 --> 0:04:51.280 moment there is you know, wild speculation about whether everything 0:04:51.279 --> 0:04:54.679 needs negotiating, whether you know President Trump goes really hard. 0:04:54.920 --> 0:04:56.280 I mean, how do you model this. 0:04:56.279 --> 0:04:59.320 Or was just urge people to keep call heads Okay, 0:04:59.520 --> 0:05:01.880 I mean that's what we did all through last year 0:05:01.920 --> 0:05:04.920 and it actually served us pretty well. And whilst trade 0:05:04.960 --> 0:05:06.919 barriers are going up around the world at the moment. 0:05:06.920 --> 0:05:10.800 We can all see that in the last year barriers 0:05:10.839 --> 0:05:15.760 to trade with the UK have fallen. We've secured a 0:05:15.920 --> 0:05:20.119 comprehensive trade deal with India which will come into force 0:05:20.240 --> 0:05:23.760 in the next few months, just taking legislation through both 0:05:23.800 --> 0:05:30.479 of our parliaments to secure that includes trade in services, 0:05:31.320 --> 0:05:36.359 support for exports and also around government procurement. That's a 0:05:36.440 --> 0:05:40.800 huge deal. The deal with Career, one of the fastest 0:05:40.839 --> 0:05:43.920 growing economies as well in the G twenty is very 0:05:43.920 --> 0:05:47.880 important for the UK. But most important probably is the 0:05:47.920 --> 0:05:51.480 trade with our nearest neighbors and trading partners in the EU, 0:05:51.600 --> 0:05:55.520 which was damaged after leaving the EU voting to leave 0:05:55.560 --> 0:05:59.800 the EU in twenty sixteen. We are now fixing that 0:06:00.440 --> 0:06:05.560 by improving trade relations and corporation with our closest allies 0:06:05.560 --> 0:06:06.680 and neighbors. 0:06:06.360 --> 0:06:07.960 And I want to get back to the UNI. Second. 0:06:08.320 --> 0:06:10.800 Governor Bailey though, said that you know, he worries about 0:06:10.880 --> 0:06:13.760 also a President Trump's attax on the FED and that 0:06:13.800 --> 0:06:16.200 could create shark waves for the UK. Do you agree 0:06:16.200 --> 0:06:16.480 with that. 0:06:17.640 --> 0:06:21.160 I think that people recognize that certainly with this government 0:06:21.160 --> 0:06:24.480 and with me as Chancellor, there's huge respect for independent 0:06:24.560 --> 0:06:28.440 economic institutions, whether that is the Bank of England or 0:06:28.520 --> 0:06:31.599 the Office of Budget Responsibility. One of the reasons why 0:06:31.680 --> 0:06:37.760 the UK has been you know, so has had challenging 0:06:37.800 --> 0:06:41.680 economic times the last few years is because the previous 0:06:41.720 --> 0:06:46.280 Conservative government, particularly under Liz Tras, both played fast and 0:06:46.360 --> 0:06:49.160 loose with the public finances but also undermine the economic 0:06:49.240 --> 0:06:54.039 institutions that make Britain have made Britain a safe and 0:06:54.040 --> 0:06:58.080 secure place to invest. We're undoing that damage, working closely 0:06:58.160 --> 0:07:03.800 with the independent Economic institution, but respecting their independence, and 0:07:04.040 --> 0:07:09.479 that collaboration and fiscal policy supporting monetary policy has enabled 0:07:09.520 --> 0:07:12.480 those six cuts in interest rates, taking rates down to 0:07:12.600 --> 0:07:16.280 three point seventy five percent. It's the fastest speed of 0:07:16.360 --> 0:07:19.440 rate reduction in the UK in seventeen years, and that's 0:07:19.440 --> 0:07:23.320 only possible because of the stability that we've returned to 0:07:23.320 --> 0:07:26.200 the economy and the decisions they've made on fiscal consolidation, 0:07:26.640 --> 0:07:30.000 and the IMF say that amongst developed economies we have 0:07:30.040 --> 0:07:32.640 got the fastest pace of fiscal consolidation over the next 0:07:32.680 --> 0:07:36.680 few years. That gives investors confidence around the stability in 0:07:36.720 --> 0:07:39.880 the UK, our grip on the public finances and our 0:07:39.880 --> 0:07:40.680 group on inflation. 0:07:40.920 --> 0:07:43.040 So there's no worry about central banking dependence. 0:07:43.080 --> 0:07:47.040 That could also impact or inspire maybe some of the 0:07:47.080 --> 0:07:50.280 opposition in the UK were they to come to power. 0:07:51.000 --> 0:07:54.160 Well, look, we won a massive majority just a year 0:07:54.200 --> 0:07:55.920 and a half ago. We have three and a half 0:07:56.000 --> 0:08:00.640 years remaining in our term in office, and that our 0:08:00.760 --> 0:08:05.280 economic plan to grow the economy with the stability return 0:08:05.320 --> 0:08:08.560 to the economy, bringing investment in global investment as well 0:08:08.640 --> 0:08:12.800 as unlocking domestic investment is the right plan. And in 0:08:12.840 --> 0:08:16.160 the next few months, as inflation returns to target with 0:08:16.320 --> 0:08:20.400 lower interest rates which are benefiting both households and businesses, 0:08:20.960 --> 0:08:25.000 that we will see the fruits of that in growth 0:08:25.040 --> 0:08:26.240 and higher living standards. 0:08:26.400 --> 0:08:28.200 Chance, I don't know whether you're a meeting with Scott 0:08:28.200 --> 0:08:31.040 Besson's the Treasury secretary here, whether or if you bump 0:08:31.040 --> 0:08:32.640 into him and promenade. 0:08:32.400 --> 0:08:36.800 Well ill with Scott last week in Washington. I'm seeing 0:08:37.559 --> 0:08:41.840 Secretary Lotnik later today. Our Prime minister spoke to President 0:08:42.080 --> 0:08:45.120 Trump just over the weekend. You know, as you would expect, 0:08:45.440 --> 0:08:49.000 there are very close relations between our country at all levels. 0:08:49.240 --> 0:08:51.360 See here and Davis yours have an announcement which is 0:08:51.400 --> 0:08:54.720 basically helping out with visas tell Us a little bit 0:08:54.720 --> 0:08:56.559 about that, and do you worry that it's going to 0:08:56.600 --> 0:08:58.000 be drowned in everything. 0:08:57.640 --> 0:08:59.400 Else that's going on. Just a little bit of news 0:08:59.440 --> 0:09:00.640 that we have out there. 0:09:00.920 --> 0:09:05.679 So I believe in free and fair trade. I believe 0:09:05.880 --> 0:09:11.000 in the benefits to businesses and also consumers of open economies. 0:09:11.480 --> 0:09:14.280 Economies that are open to trade, open to investment, and 0:09:14.360 --> 0:09:18.640 open to talent have always been the most successful economies. 0:09:18.800 --> 0:09:22.160 And I want Britain, even in a world where others 0:09:22.200 --> 0:09:25.040 are putting up barriers to trade and investment and talent, 0:09:25.360 --> 0:09:29.600 for Britain to be breaking down those barriers. And we 0:09:29.880 --> 0:09:35.240 are announcing today further changes in our global talent routes 0:09:35.280 --> 0:09:39.600 into the UK for three particular types of visa. The 0:09:39.640 --> 0:09:44.439 first is for foreign businesses looking to expand their footprint 0:09:44.760 --> 0:09:48.400 in the UK, working with them so that they can 0:09:48.400 --> 0:09:52.200 bring in talent as they expand their footprint. Second for 0:09:52.840 --> 0:09:58.800 UK businesses in our industrial strategy sectors, which includes financial services, 0:09:59.040 --> 0:10:05.600 business services, creative industries, clean energy, advanced manufacturing, defense, et cetera. 0:10:06.720 --> 0:10:10.000 For those businesses, if they are bringing in talent from 0:10:10.040 --> 0:10:15.439 overseas into the UK, their visas will be The fees 0:10:15.520 --> 0:10:18.319 for those visas will be waived. And then the third 0:10:18.360 --> 0:10:23.920 announcement today is that for really great talent looking to 0:10:23.960 --> 0:10:28.880 come to UK universities again, we'll waive those visas as 0:10:28.960 --> 0:10:32.600 well as a specific scheme for people gold medalists in 0:10:33.000 --> 0:10:36.200 the maths olympiad offering a number of scholarships to UK 0:10:36.400 --> 0:10:39.800 universities for those people, because we want Britain to be 0:10:39.840 --> 0:10:43.200 a magnet for global talent in the same way we 0:10:43.240 --> 0:10:45.040 want it to be the best place in the world 0:10:45.480 --> 0:10:47.320 to trade from and to invest. 0:10:47.000 --> 0:10:50.200 In chandswer there's a growing clamor and labor circles, even 0:10:50.400 --> 0:10:53.080 from some of your own Cabinet, for the UK to 0:10:53.160 --> 0:10:55.360 join a customs union with the US that on the. 0:10:55.360 --> 0:10:59.480 Cord No, it was very clear in our manifesto that 0:11:00.080 --> 0:11:03.760 we wouldn't be rejoining the Single Market, the Customers Union, 0:11:04.160 --> 0:11:08.800 or bringing back free movement of labor. But what we 0:11:09.280 --> 0:11:12.839 have done already is brought back the Erasmus scheme which 0:11:12.920 --> 0:11:15.920 enables young people both from the UK to go and 0:11:16.240 --> 0:11:19.199 study at European universities and young people from Europe to 0:11:19.200 --> 0:11:22.680 come and study at our brilliant universities in the UK. 0:11:23.320 --> 0:11:27.600 We also have agreements in principle from last May around 0:11:29.080 --> 0:11:33.040 the UK doing a food and farming deal, to reduce 0:11:34.120 --> 0:11:37.840 barriers to trade at the border around electricity trading and 0:11:38.040 --> 0:11:43.840 energy trading, as well as some form of youth mobility 0:11:44.480 --> 0:11:47.280 within the European Union and the United Kingdom. So we're 0:11:47.320 --> 0:11:50.120 making progress and all of that, looking to have another 0:11:50.160 --> 0:11:56.960 summit this year where we can mark ourselves on progress 0:11:57.000 --> 0:12:01.160 against those ambitions and set new ambitions, because that summit 0:12:01.240 --> 0:12:04.120 last year was just the start of improving relations between 0:12:04.160 --> 0:12:07.640 the UK and the U and the EU. And I 0:12:07.640 --> 0:12:10.960 would just say that, you know, these sort of times 0:12:11.000 --> 0:12:15.520 when others are putting up barriers to trade, what Britain 0:12:15.600 --> 0:12:18.480 is arguing for and what I believe in strongly is 0:12:18.480 --> 0:12:21.800 that those of us who believe in free and fair 0:12:21.880 --> 0:12:26.559 trade should practice what we preach and reduce barriers between ourselves. 0:12:27.000 --> 0:12:30.640 That goes to the UK, the EU, Canada and other 0:12:31.080 --> 0:12:34.840 allies around the world. And we are determined to lead 0:12:34.880 --> 0:12:37.360 from the front in that we've already secured trade deals 0:12:37.360 --> 0:12:39.680 with countries around the world. We want to do more 0:12:40.280 --> 0:12:41.040 in the months to come. 0:12:41.120 --> 0:12:43.480 But I mean mathematically, just you know, if you leave 0:12:43.480 --> 0:12:47.000 partics to unsaide again, rejoining the Customer Union could be 0:12:47.000 --> 0:12:49.760 more beneficial so do you see future at any point 0:12:49.840 --> 0:12:52.000 where the UK goes back again that we can't. 0:12:51.800 --> 0:12:54.920 Go back in time. And since we left the EU, 0:12:55.000 --> 0:12:57.480 we have done trade deals with India, with the US 0:12:57.480 --> 0:13:01.040 with career and obviously you would lose some of the 0:13:01.040 --> 0:13:03.280 benefits of those trade deals if you were to re 0:13:03.480 --> 0:13:07.640 enter a customs union, and things like the benefits of 0:13:08.360 --> 0:13:12.319 the deal we did with the US for our automotive sector. 0:13:12.800 --> 0:13:15.280 The deal that we have with India is better than 0:13:15.679 --> 0:13:19.600 the deal that any other country has with India. So 0:13:19.840 --> 0:13:21.800 I think you have to consider all of these things 0:13:21.840 --> 0:13:24.359 in the round. I don't think we need to return 0:13:24.800 --> 0:13:28.840 to the Customs Union to seize greater benefits of free 0:13:28.880 --> 0:13:33.079 and fair trade. And we are working peace by piece, 0:13:33.120 --> 0:13:35.880 but with a strategic goal in mind, which is to 0:13:35.920 --> 0:13:38.560 make it easier for British businesses to sell into European 0:13:38.640 --> 0:13:42.560 markets and for European businesses to sell in into British markets. 0:13:42.600 --> 0:13:46.679 And when the barriers to trade in other markets are 0:13:46.679 --> 0:13:50.160 going up, we want to create more opportunities for our 0:13:50.200 --> 0:13:53.360 businesses to trade with other countries around the world. 0:13:53.880 --> 0:13:55.800 There is of course big news about a new embassy 0:13:56.000 --> 0:13:59.960 Chinese embassy in London today. How do you see actually 0:14:00.160 --> 0:14:03.280 relationship with the UK and China evolving. 0:14:03.920 --> 0:14:10.280 Yeah, so we've given planning permission today for a new embassy. 0:14:10.280 --> 0:14:13.440 Obviously China already has an embassy in London. This will 0:14:13.480 --> 0:14:19.240 be a new embassy and move. But you know, if 0:14:19.280 --> 0:14:21.280 you just sort of take a step back, Britain has 0:14:21.360 --> 0:14:24.040 embassies in almost every country around the world, and almost 0:14:24.080 --> 0:14:27.320 every country in the world has an embassy in London. 0:14:27.360 --> 0:14:32.000 They are absolutely vital for diplomatic relations and also for 0:14:32.080 --> 0:14:35.040 resolving tensions. And so it is right that China has 0:14:35.280 --> 0:14:38.080 an embassy in London in the same way that it's 0:14:38.120 --> 0:14:43.320 important and right that the UK has an embassy in Beijing. 0:14:43.360 --> 0:14:45.920 And I was at our embassy in Beijing just last 0:14:46.040 --> 0:14:51.720 January when we restarted the economic and financial dialogue with China. 0:14:51.960 --> 0:14:53.960 It was the first time that we'd had an economic 0:14:53.960 --> 0:14:56.960 and financial dialogue between our countries for six years. And 0:14:57.000 --> 0:15:00.720 whilst other countries had been securing benefits for their financial 0:15:00.720 --> 0:15:06.840 services sectors in growing markets, in China, we refused to engage. 0:15:06.880 --> 0:15:09.520 And that was the wrong thing to do. It was 0:15:09.560 --> 0:15:12.720 not in Britain's interest and that's why we changed that approach. 0:15:13.280 --> 0:15:16.200 They hosted the Chinese hosted the Economic and Financial diagalog 0:15:16.440 --> 0:15:20.320 Dialogue last year. We secured significant benefits for UK businesses 0:15:20.480 --> 0:15:24.040 and we'll be hosting the next Economic and Financial Dialogue 0:15:24.200 --> 0:15:27.520 with our Chinese counterparts in the UK this year. 0:15:28.000 --> 0:15:30.280 If the US continues being a little bit, you know, 0:15:30.360 --> 0:15:33.120 not a little bit actually belligerent with Europe, do you 0:15:33.160 --> 0:15:34.920 see the UK being getting. 0:15:34.680 --> 0:15:35.920 Much much closer to China. 0:15:36.160 --> 0:15:39.520 Well, let's just look at the numbers. The US trades 0:15:39.600 --> 0:15:41.840 more as a share of GDP with China than the 0:15:41.960 --> 0:15:46.240 UK does. Almost every big country in Europe trades more 0:15:46.280 --> 0:15:50.160 with China than the UK does, and that's because the 0:15:50.280 --> 0:15:55.560 UK under successive conservative governments retreated from the global sphere 0:15:55.600 --> 0:15:57.920 for a number of years and that was a mistake 0:15:57.960 --> 0:16:01.480 and we lost out on growth and trade as a 0:16:01.520 --> 0:16:04.480 result of it. We are pursuing a very different approach, 0:16:04.520 --> 0:16:09.720 which is to relentlessly focus on our national interest, and 0:16:09.760 --> 0:16:14.280 our national interest means tackling the cost of living and 0:16:14.320 --> 0:16:17.040 growing our economy with more good jobs paying decent wages 0:16:18.400 --> 0:16:20.760 in all parts of our country. And we only achieve 0:16:20.800 --> 0:16:23.920 that if we bring more investment in international and domestic 0:16:24.360 --> 0:16:28.840 and if we achieve more opportunities for firms in Britain, 0:16:29.120 --> 0:16:32.760 employing people in Britain to then sell the excellent goods 0:16:32.760 --> 0:16:35.440 and services that we produce in the UK all around 0:16:35.440 --> 0:16:36.880 the world. And that's exactly what we're doing. 0:16:37.280 --> 0:16:37.640 Chansfer. 0:16:37.680 --> 0:16:39.920 Back in Westminster, a lot of people in Labor are 0:16:39.920 --> 0:16:42.120 thinking about a challenge to your leadership and to your 0:16:42.160 --> 0:16:45.040 Starmer's leadership in the coming months, especially if the local 0:16:45.040 --> 0:16:48.560 elections are very bad. What will you tell investors here 0:16:48.600 --> 0:16:51.280 in Davos who might be worried about are more left 0:16:51.320 --> 0:16:53.560 wing a PM and Chancellor getting in. 0:16:54.320 --> 0:16:57.120 I really don't think that people need to worry about that. 0:16:57.280 --> 0:17:01.040 Kere one and massive majority in Parliament and the Parliamentary 0:17:01.120 --> 0:17:04.920 Labor Party, the cabinet want the Prime Minister to succeed. 0:17:05.720 --> 0:17:09.480 Even if someone did have the stupid idea of challenging 0:17:09.960 --> 0:17:12.720 the prime minister is incredibly difficult to do so. And 0:17:12.760 --> 0:17:15.280 I have every confidence that Kiir will continue to be 0:17:15.320 --> 0:17:18.199 Prime Minister all through this term. I will continue to 0:17:18.200 --> 0:17:21.120 be Chancellor and hopefully into the second term as well. 0:17:21.720 --> 0:17:24.879 Nigel Faraj is arriving here in Davas. 0:17:25.040 --> 0:17:27.840 What would Prime Minister Viros She's doing very well in 0:17:27.920 --> 0:17:29.520 the polls mean for the UK economy? 0:17:30.680 --> 0:17:34.000 Well I think it would be very bad loose for 0:17:34.400 --> 0:17:38.200 the UK economy. Nigel Faraj believes in closed economies. He 0:17:38.280 --> 0:17:42.560 does not believe in the UK being open for trade. 0:17:42.840 --> 0:17:49.640 He sides with our adversaries rather than our friends, including 0:17:49.760 --> 0:17:55.760 with Russia, and they're more in Ukraine. And in terms 0:17:55.840 --> 0:18:00.240 of business, he was the cheerleader in chief of leading 0:18:00.400 --> 0:18:03.919 the European Union. He's opposed every trade deal that this 0:18:03.960 --> 0:18:07.159 government has done, including the deal with the US and 0:18:07.160 --> 0:18:10.520 including the deal with India. He doesn't believe in an 0:18:10.560 --> 0:18:15.840 independent central bank or those independent economic institutions which give 0:18:15.880 --> 0:18:19.520 stability to the UK economy. And I do think that, 0:18:19.720 --> 0:18:25.199 you know, businesses should without getting worried, should you know, 0:18:25.280 --> 0:18:28.840 think about the consequences of that and not just sit 0:18:28.840 --> 0:18:29.560 on the sidelines. 0:18:29.640 --> 0:18:32.360 I mean, does having him here in Davos taking meetings, 0:18:32.560 --> 0:18:35.440 I think ars meeting with possibly we don't have confirmation 0:18:35.520 --> 0:18:38.040 the US delegation, does that overshadow some of the work 0:18:38.200 --> 0:18:39.760 that you're trying to do with your delegation. 0:18:40.119 --> 0:18:43.600 No, not at all. There's no and there's no plans. 0:18:43.680 --> 0:18:46.199 He's got seven MP's in parliament France, and I know 0:18:46.200 --> 0:18:48.119 that people want to get excited or maybe a couple more. 0:18:48.440 --> 0:18:51.960 Who knows how many Tories have defected today. But you 0:18:52.000 --> 0:18:55.399 know he's got a small number of MPs. He's lost 0:18:55.400 --> 0:18:58.080 almost as many MPs as he's gained in this parliament 0:18:58.400 --> 0:19:02.240 because he's incapable of working with others. I'm not worried 0:19:02.760 --> 0:19:05.919 about Nigel Farrage. I believe that our plan is the 0:19:05.960 --> 0:19:08.800 right one. We are improving the cost of living for 0:19:08.960 --> 0:19:12.360 working people in Britain. We're bringing investment to Britain, inflation 0:19:12.440 --> 0:19:15.200 and interest rates that are coming down this year. Last 0:19:15.240 --> 0:19:18.000 year we had the second fastest growing economy in the 0:19:18.000 --> 0:19:21.000 g seven. Our plan is the right one. It will 0:19:22.119 --> 0:19:25.520 begin to reap dividends this year, especially as inflation gets 0:19:25.520 --> 0:19:29.040 back to target and the benefits of those trade deals 0:19:29.280 --> 0:19:29.920 begin to flow. 0:19:30.000 --> 0:19:32.280 But there is a perception that he's gaining momentum because 0:19:32.280 --> 0:19:33.040 of the defections. 0:19:33.840 --> 0:19:36.320 So I mean, you know, you've got these people who 0:19:36.320 --> 0:19:38.520 were defeated a year and a half ago in a 0:19:38.560 --> 0:19:44.520 general election, Robert Jeneric Andrew Rossendale, the other people whose 0:19:44.600 --> 0:19:49.320 names no one remembers, who lost the support of the 0:19:49.320 --> 0:19:53.199 British public a year ago, who are now changing the 0:19:53.280 --> 0:19:58.520 rests and think that that will change their fortunes it owns, 0:19:58.600 --> 0:20:00.800 and I do believe that the British public will see 0:20:00.800 --> 0:20:02.720 through that they kicked the Tories out for a reason. 0:20:02.880 --> 0:20:05.240 They're not going to just re elect them because they're 0:20:05.240 --> 0:20:08.720 now wearing a teal rosette rather than a blue one er. 0:20:08.760 --> 0:20:10.199 There are a lot of questions people want to know 0:20:10.200 --> 0:20:12.760 about taxes. I know you can't tell us about the 0:20:12.800 --> 0:20:14.760 next budget. I don't know whether you think that this 0:20:15.400 --> 0:20:18.120 new trade tensions could have an impact of the budget. 0:20:18.160 --> 0:20:21.280 But holistically speaking, if you were to raise taxes again, 0:20:21.960 --> 0:20:24.880 would you do it for wealth taxes or a general taxation. 0:20:25.119 --> 0:20:27.920 We've just had a budget and what I was able 0:20:27.960 --> 0:20:30.680 to do in that budget was to build a headroom 0:20:30.720 --> 0:20:33.280 of twenty one points seven billion pounds, more than doubling 0:20:33.920 --> 0:20:38.080 the headroom against our fiscal rules. I think that now 0:20:38.119 --> 0:20:40.920 puts us in a very strong position that we will 0:20:40.920 --> 0:20:46.040 not need to do more on that front. I'm not 0:20:46.080 --> 0:20:48.399 going to be able to write future budgets today. The 0:20:48.440 --> 0:20:51.800 world is a very uncertain place. But that increase in 0:20:51.880 --> 0:20:55.000 the headroom was very much I think welcome by markets 0:20:55.160 --> 0:20:58.719 and has given greater confidence to people that we can 0:20:58.760 --> 0:21:02.000 have stability on a fiscal front. As well. In addition, 0:21:02.240 --> 0:21:05.760 we've been really clear that the spring forecast from the 0:21:05.760 --> 0:21:09.480 OBR will not be a fiscal event in the same 0:21:09.520 --> 0:21:11.800 way that it has been in the past, and reform 0:21:11.840 --> 0:21:14.520 of the Office of Budget Responsibility means that we can 0:21:14.600 --> 0:21:17.360 now move to one major fiscal event a year, so 0:21:17.400 --> 0:21:21.359 that you, Francine and others don't ask me every week 0:21:21.680 --> 0:21:25.840 for a year what tax changes are planned. We don't 0:21:25.880 --> 0:21:30.280 plan any tax changes in the spring, and a very 0:21:30.359 --> 0:21:33.280 much hope after the headroom that we have built in 0:21:33.800 --> 0:21:38.960 through difficult decisions on tax and spending that provides the 0:21:39.000 --> 0:21:40.080 stability that we need. 0:21:40.320 --> 0:21:42.240 Every week chanswer. I thought we were more tenacious. 0:21:42.240 --> 0:21:44.400 I thought it was every day that we were asking 0:21:44.400 --> 0:21:46.280 you what are. 0:21:46.200 --> 0:21:47.960 You most looking forward to? In Davas we have one 0:21:47.960 --> 0:21:48.359 more minute. 0:21:48.400 --> 0:21:50.640 I mean, you know, we talk about disruption, sharks, there's 0:21:50.640 --> 0:21:52.800 a lot about AI, but is there something what have 0:21:52.880 --> 0:21:53.639 you come here to do? 0:21:53.840 --> 0:21:54.040 Well? 0:21:54.080 --> 0:21:56.760 This is my fourth time in Davos. I came twice 0:21:56.760 --> 0:22:03.040 as Shadow Chancellor to set out the the opposition approach 0:22:03.119 --> 0:22:06.240 to the economy. I learned a lot during those two 0:22:06.359 --> 0:22:10.880 visits about what international investors were looking for in the UK. 0:22:11.240 --> 0:22:14.480 I knew they wanted stability. I knew they wanted better 0:22:14.520 --> 0:22:17.720 support to leverage in the private sector investment the cash 0:22:17.760 --> 0:22:20.400 that was sitting there but wasn't coming to the UK 0:22:20.920 --> 0:22:23.600 because of that uncertainty. And I know that they wanted 0:22:23.720 --> 0:22:29.480 reform to how our economy works, planning reform, regulatory burdens, lifted, 0:22:30.200 --> 0:22:34.320 better trade opportunities with countries around the world. That is 0:22:34.359 --> 0:22:38.040 what we are delivering as a government now. I'm certainly 0:22:38.119 --> 0:22:40.000 not claiming that the first year and a half in 0:22:40.040 --> 0:22:42.520 office has been easy, or that every decision that we've 0:22:42.560 --> 0:22:45.400 made has been one that's welcomed by business. But when 0:22:45.400 --> 0:22:47.800 you look around the world, when you look at the 0:22:47.800 --> 0:22:50.800 delegations from around the world this week, I hope people 0:22:50.840 --> 0:22:54.160 see in Britain. I hope that businesses see in Britain 0:22:54.520 --> 0:22:57.159 a country that has returned to the stability, that is 0:22:57.200 --> 0:23:02.119 bringing investment, is changing how the economy works and is open, 0:23:02.240 --> 0:23:05.919 open to business, open to trade, open to investment, and 0:23:05.960 --> 0:23:07.880 as I set out today, open to talent as well.