Starmer safeguards minimal custom fee agreement, implores Badenoch: "Climb aboard the train bound for Solihull"
Ditching the Tariffs and Nitpicking Deals: A Political Banter Over UK's Economic State
The Labour leader, Sir Keir Starmer, gave Conservative leader Kemi Badenoch some solid advice: "Hop on a train to Solihull" and engage with workers at Jaguar Land Rover, following her critique of his "tiny" US trade deal.
Ms Badenoch, meanwhile, claimed that the prime minister was overstating the value of the US trade agreement, stating, "I'm pleased to welcome these mini tariff cuts, but the reality is, we're in a more dismal position compared to pre-tariff announcement. Don't exaggerate the situation."
She argued that the economic situation is deteriorating for businesses as the Office for National Statistics (ONS) predicts a decrease of 100,000 jobs since last year, even before the employer national insurance hike.
Sir Keir responded by suggesting Ms Badenoch should address the JLR factory workers, stating, "Tell them you'll rip up the deal that safeguards their jobs. If you find time, chat with the steelworkers in Scunthorpe, assure them you'll shred the deal that protects their jobs. Rush to Scotland and converse with the whisky distilleries, tell them I should annul the deal that nurtures 1,200 jobs and boosts their exports."
Sir Keir, the first world leader to forge a trade deal with Donald Trump since his tariff announcement, clarified that the existing tariff of 10% for all UK goods exported to the US remains in force.
While the recent US deal might have provided Sir Keir with a boost, it comes against the backdrop of a challenging UK economy. Britain, too, managed to secure an "ambitious" trade agreement with India, slashing tariffs on products like whisky and gin. Trump himself acknowledged the achievement, claiming the Tories had failed to secure a deal with Washington for eight years, but achieved it "under this prime minister."
As for employment, official figures published on Tuesday show wage growth has slowed, and available job opportunities are decreasing as employers struggle with rising costs. The Conservatives have attributed the predicament of British businesses to the government's increase in employer national insurance, which they dub as a "jobs tax." During session, Ms Badenoch repeatedly criticized this move.
Meanwhile, Ms Badenoch challenged Sir Keir to guarantee lower unemployment rates by the following year, asserting that it has increased by 10% since the general election owing to Labour's policies. However, Labour MP Jake Richards later contested this claim, arguing that the unemployment statistic in question was incorrect.
Economy Insights
Current Economic Landscape
The UK economy displayed impressive growth in the first quarter of 2025, with a 0.7% increase in GDP compared to the last quarter of 2024 – indicating thestrongest quarterly growth in over a year[2][3]. This expansion was largely driven by the services sector, including administrative and support services, wholesale and retail trade, and information and communication[2].
Employment
As of the latest reports, employment statistics for 2025 have not been detailed. However, the robust economic growth suggests a favorable trend in employment, with sectors like services and manufacturing experiencing growth[4]. Nevertheless, employment data is typically released separately by the Office for National Statistics (ONS), and trends might not align directly with GDP growth rates.
Trade Deals
US Trade Deal
Although the UK is eager to forge a comprehensive trade deal with the US, progress has been slow. The UK's economic growth has largely been impervious to US trade frictions, but lingering uncertainty regarding US tariffs remains a concern for the nation's future economic stability[3]. A preliminary agreement on tariffs has been reached, but a full-fledged trade deal continues to evade the UK.
India Trade Deal
In an attempt to strengthen economic ties and remove trade barriers, the UK is pursuing a trade deal with India. Although negotiations are ongoing, no significant breakthroughs have been reported recently. The UK’s focus on diversifying trade relations, including with India, is a strategic move to counter potential disruptions in trade from other regions.
Future Challenges
Despite the strong first quarter, economists foresee a potential slowdown in UK economic growth due to global uncertainties, primarily from US trade policies[3]. The ongoing negotiations with both the US and India are vital to maintaining economic momentum by securing favorable trade conditions.
- The discussions between Sir Keir Starmer and Kemi Badenoch on UK's economic state have expanded to include policy-and-legislation, as both leaders have critiques about each other's strategies concerning trade deals and tariffs.
- The ongoing debates regarding employment, economic growth, and trade deals in the context of politics and general-news highlight the complexity of the UK's current economic landscape, which is marked by challenges from global uncertainties, primarily US trade policies, and the need for strategic diversification of trade relations, like the pursuit of a trade deal with India.
