The prime minister will pledge to get rid of regulation that “needlessly holds back investment” at a major business conference in London today.
The International Investment Summit will comprise more than £50bn of deal announcements – or roughly twice the £28bn unveiled at the previous comparable gathering held under the former Conservative administration, Sky News’ City Editor Mark Kleinman learned on Sunday.
It comes after a row over the transport secretary’s criticism of P&O Ferries reportedly jeopardised a £1bn investment by its Dubai-based owner DP World.
However the investment will go ahead and DP world’s chairman, Sultan Ahmed bin Sulayem, will attend the conference after a frantic effort by UK ministers and diplomats to repair relations with the company.
The government is eager to show it is making progress on its mission to deliver economic growth after marking 100 days in office and ahead of the chancellor’s first budget on 30 October.
Chancellor Rachel Reeves has warned of “tough decisions” at the spending review as Labour says it needs to plug a £22bn “black hole” in the public finances left by the Conservatives.
The government says that international investment will help with its goals to create jobs, improve living standards, and make communities and families across the country better off.
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It will ask the Competition and Markets Authority to prioritise growth, investment and innovation, and will review the focus of other major regulators to “curb red tape” and put the UK “at the front of the queue” for opportunities.
Image: DP World chief executive Sultan Ahmed bin Sulayem. Pic: AP
In a keynote speech at the summit, Prime Minister Sir Keir Starmer is expected to pitch Britain as a stable bet for investors, saying he will “do everything in my power to galvanise growth including getting rid of regulation that needlessly holds back investment”.
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He will say: “We have a golden opportunity to use our mandate, to end chop and change, policy churn and sticking plasters that make it so hard for investors to assess the value of any proposition.
“We have the determination, the focus on clear long-term ends, a mission-led mindset that thinks in years, not the days or hours of the news grid, needed to unlock that potential. Do not doubt that.
“We are focusing on investment because the mission of growth, in this country especially, demands it. Private sector investment is the way we rebuild our country and pay our way in the world.”
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Five of the world’s biggest banks, private equity firms, insurers and tech giants gave a signal of support in a joint letter to The Times.
“We are optimistic about the future of the economy, and believe it is time to invest in Britain,” they said, citing greater stability and growth in the technology and energy sectors.
There has been speculation as to which taxes could be raised in the budget after Labour committed not to increase national insurance, income tax or VAT.
Ms Reeves must also choose whether to amend fiscal rules to allow more borrowing to fund public spending.
Consumer health firm Haleon has announced a £130m investment in a new Global Oral Health Innovation centre in Weybridge, Surrey, to coincide with the summit.
The return on Donald Trump to the G7 was always going to be unpredictable. That it is happening against the backdrop of an escalating conflict in the Middle East makes it even more so.
Expectations had already been low, with the Canadian hosts cautioning against the normal joint communique at the end of the summit, mindful that this group of leaders would struggle to find consensus.
Canadian Prime Minister Mark Carney carefully laid down an agenda that was uncontroversial in a bid to avoid any blow-ups between President Trump and allies, who of late have been divided like never before – be it over tariffs and trade, Russia and Ukraine, or, more recently Israel’s conduct in Gaza.
But discussions around critical minerals and global supply chains will undoubtedly drop down the agenda as leaders convene at a precarious moment. Keir Starmer, on his way over to Canada for a bi-lateral meeting in Ottawa with PM Carney before travelling onto the G7 summit in Kananaskis, underscored the gravity of the situation as he again spoke of de-escalation, while also confirmed that the UK was deploying more British fighter jets to the region amid threats from Tehran that it will attack UK bases if London helps defend Israel against airstrikes.
Image: Canadian PM Mark Carney is greeted by President Donald Trump at the White House in May. Pic: AP
Really this is a G7 agenda scrambled as world leaders scramble to de-escalate the worst fighting between Tel Aviv and Tehran in decades. President Trump has for months been urging Israel not to strike Iran as he worked towards a diplomatic deal to halt uranium enrichment. Further talks had been due on Sunday – but are now not expected to go ahead.
All eyes will be on Trump in the coming days, to see if the US – Israel’s closest ally – will call on Israel to rein in its assault. The US has so far not participated in any joint attacks with Tel Aviv, but is moving warships and other military assets to the Middle East.
Sir Keir, who has managed to strike the first trade deal with Trump, will want to leverage his “good relationship” with the US leader at the G7 to press for de-escalation in the Middle East, while he also hopes to use the summit to further discuss the further the interests of Ukraine with Trump and raise again the prospects of Russian sanctions.
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“We’ve got President Zelenskyy coming so that provides a good opportunity for us to discuss again as a group,” the PM told me on the flight over to Canada. “My long-standing view is, we need to get Russia to the table for an unconditional ceasefire. That’s not been really straightforward. But we do need to be clear about what we need to get to the table and that if that doesn’t happen, sanctions will undoubtedly be part of the discussion at the G7.”
Image: Prime Minister Sir Keir Starmer (R) is greeted by Mark Carney as he arrives in Ottawa ahead of the G7
But that the leaders are not planning for a joint communique – a document outlining what the leaders have agreed – tells you a lot. When they last gathered with Trump in Canada for the G7 back in 2018, the US president rather spectacularly fell out with Justin Trudeau when the former Canadian president threatened to retaliate against US tariffs and refused to sign the G7 agreement.
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Since then, Trump has spoken of his desire to turn Canada into the 51st state of the US, a suggestion that helped catapult the Liberal Party beyond their Conservative rivals and back into power in the recent Canadian elections, as Mark Carney stood on a ticket of confronting Trump’s aggression.
With so much disagreement between the US and allies, it is hard to see where progress might be made over the next couple of days. But what these leaders will agree on is the need to take down the temperature in the Middle East and for all the unpredictability around these relationships, what is certain is a sense of urgency around Iran and Israel that could find these increasingly disparate allies on common ground.
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