Chancellor Rachel Reeves has declared that Britain will not be "buffeted around" by American threats to impose fresh tariffs, as part of its ongoing pursuit of Greenland. Speaking exclusively to Sky News from the World Economic Forum in Davos, just ahead of Donald Trump's anticipated arrival, the chancellor emphasised that her policies and diplomatic approach are firmly designed to protect and advance the British national interest.
Defending Britain's Economic Strategy
In a robust statement, Reeves outlined the UK's steadfast position. "Britain is not here to be buffeted around," she asserted. "We have a clear and coherent economic plan, and it is unequivocally the right one for our nation. If other countries choose to escalate trade barriers, that is their prerogative, but our determination is resolute: we are committed to dismantling those barriers and fostering open, fair trade."
Pointing to Past Success
The chancellor pointed to the trade and co-operation agreement successfully negotiated with the United States last year as tangible proof that the UK can, and does, secure advantageous deals even with the Trump administration. This landmark pact, she noted, stands as the first comprehensive trade deal between the two nations and serves as a foundation for future negotiations.
Reeves also defended Prime Minister Keir Starmer's decision not to attend the Davos meeting personally. "At present, no tariffs have actually been imposed," she clarified. "The prudent approach, which our Prime Minister has consistently championed over the past year, is to work towards de-escalation and to tirelessly pursue the optimal outcome for Britain. We secured an excellent deal last year, and I remain confident that we will continue to achieve favourable terms for Britain, both with the US and across the global stage."
Britain's Presence at Davos
Leading a substantial delegation of government ministers and business leaders at the prestigious forum, Chancellor Reeves announced a significant achievement: the securing of £1.5 billion in fresh inward investment for the UK. "I have already met with numerous businesses here in Davos this morning," she reported, "including dynamic British firms and international investors who are genuinely enthusiastic about the burgeoning opportunities within Britain. This excitement spans critical sectors such as artificial intelligence, advanced technology, financial services, and the burgeoning clean energy industry. I share their optimism and am profoundly excited about these prospects for our nation's future."
Addressing Inflation Concerns
In a separate but related development, the chancellor also addressed recent economic data, defending the government's measures to combat inflation. This follows a higher-than-anticipated rise in the Consumer Prices Index (CPI), which reached 3.4% in December.
"A slight increase in inflation this month was anticipated, in line with the Bank of England's own forecast," Reeves explained. "However, it is also abundantly clear that the Bank expects inflation to return to its 2% target by late spring or early summer. This continues to be our firm expectation, bolstered by the decisive measures I implemented in my budget. These included providing a £150 reduction on energy bills for households, as well as freezing rail fares and prescription charges, all of which are designed to alleviate cost-of-living pressures."
The chancellor's comments underscore a dual strategy of assertive international trade diplomacy and focused domestic economic management, positioning the UK to navigate global uncertainties while safeguarding its economic stability and growth.
