Chancellor Rachel Reeves outlines red lines for US trade deal
Britain will not lower its standards or water down regulation in exchange for a trade deal with the US, the chancellor has confirmed.
Rachel Reeves was speaking ahead of a pivotal meeting with her American counterpart in Washington DC.
In an interview with Sky News, Ms Reeves said she was “confident” that a deal would be reached but said she had red lines on food and car standards, adding that changes to online safety were “non-negotiable for the British government”.
The comments mark the firmest commitment to a slew of rules and regulations that have long been a gripe for the Americans.
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The US administration is pushing for the UK to relax rules on agricultural exports, including hormone-treated beef.
While Britain could lower tariffs on some agricultural products that meet regulations, ministers have been clear that it will not lower its standards.
However, the government has been less firm with its stance on online safety.
A tech red line
The US tech industry has fiercely opposed Britain’s Online Safety Act, which was introduced in 2023 and requires tech companies to shield children from harmful content online.
In an earlier draft UK-US trade deal, the British government was considering a review of the bill in the hope of swerving US tariffs.
However, the chancellor suggested that this was no longer on the table.
“On food standards, we’ve always been really clear that we’re not going to be watering down standards in the UK and similarly, we’ve just passed the Online Safety Act and the safety, particularly of our children, is non-negotiable for the British government,” she said.
She added that Britain was “not going to water down areas of road safety”, a move that could pave the way for American SUVs that have been engineered to protect passengers but not pedestrians.
While non-tariff barriers will remain intact, it was reported on Tuesday night that the UK could lower its automotive tariff from 10% to 2.5%.
The calculations behind Reeves’s red lines
What can Britain offer the Americans if it’s not prepared to lower its standards?
Donald Trump has previously described non-tariff barriers that block US exporters as “cheating”.
Britain does have some scope to bring down tariff rates – and Rachel Reeves suggested that this was her focus – but ours is already a highly open economy, we don’t have huge scope to cut tariff rates.
The real prize for the Americans is in the realm of these non-tariff barriers.
There has been much speculation about what the UK could offer up, but the chancellor on Wednesday gave a comprehensive commitment that she would not dilute standards.
There are many who will breathe a collective sigh of relief – from UK farmers to road safety campaigners and parents of young children.
While the government is sensitive to any potential public backlash, it also has another factor to think about.
When Ms Reeves arrives back home, she will begin preparations for a UK-EU summit in London next month.
The UK’s food and road safety standards are, in many areas, in sync with Europe, and Britain is seeking even deeper integration.
Lowering standards for the Americans would make that deeper alignment with the Europeans impossible.
The chancellor has to decide which market is more valuable to Britain.
The answer is Europe.
Back at home, the chancellor suggested that she was still open to relaxing rules on the City of London, even though global financial markets have endured a period of turmoil, triggered by President Trump’s trade war.
Reforms at home?
In her Mansion House speech last November, the chancellor said post-2008 reforms had “gone too far” and set the course for deregulating the City.
Asked if that was a wise move in light of the recent sharp swings in the financial markets, Ms Reeves said: “I want regulators to regulate not just for risk but also for growth.
“We are making reforms and we have set out new remit letters to our financial services regulators.”
Britain’s borrowing costs hit their highest level in almost 30 years after Mr Trump’s Liberation Day tariffs announcements, a stark reminder that policy decisions in the US have the power to raise UK bond yields and in turn, affect the chancellor’s budget, dent her already small fiscal headroom and derail her plans for tax and spend.
However, the chancellor said she would not consider adapting her fiscal rules, which include a promise to cover day-to-day spending with tax receipts, even if it gives her more room to manoeuvre in the face of volatility.
“Fiscal rules are non-negotiable for a simple reason, that Britain must offer under this government fiscal and financial stability, which is so important in a world of global uncertainty,” she said.
Partners of a company linked to Baroness Michelle Mone have said they are open to a possible settlement with the government after the company was found to have breached a £122m PPE contract.
The Department of Health and Social Care (DHSC) had accused PPE Medpro of providing 25 million “faulty”, non-sterile gowns during the COVID pandemic.
The High Court ruled earlier this month that it must pay back a £121.9m sum, the price of the gowns.
PPE Medpro, a consortium led by Lady Mone‘s husband Doug Barrowman, filed to enter administration earlier this month.
In a statement on Friday, Mr Barrowman said: “The consortium partners of PPE Medpro are prepared to enter into a dialogue with the administrators of the company to discuss a possible settlement with the government.”
PPE Medpro has spent £4.3m defending its position.
It said offers to settle on a no-fault basis had been made, including the remake of 25 million gowns, or a £23m cash equivalent, which were rejected.
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The consortium was awarded government contracts by the former Conservative administration to supply personal protective equipment (PPE) during the pandemic after Lady Mone recommended it to ministers.
It insists that it provided all 25 million gowns and disputes that the gowns were not sterile.
It is understood the partners want to resolve the issue, and administrators have been urged to approach the government to reach an agreement.
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In the High Court ruling, Mrs Justice Cockerill said the gowns “were not, contractually speaking, sterile, or properly validated as being sterile”. This meant they could not be used in the NHS.
Barristers for PPE Medro claimed it had been “singled out for unfair treatment” and accused the government of “buyer’s remorse”.
Michelle Mone recommended the firm, led by husband Doug Barrowman, to minsters. Pic: PA
It claimed the gowns had become defective because of the conditions they were kept in after being delivered. It also said the court made its ruling on a technicality.
Lady Mone branded the judgement a win for the “establishment”, while Mr Barrowman said it was a “travesty of justice”.
Baroness Mone, who created the lingerie brand Ultimo, was made a Conservative peer in 2015.
She now says she has “no wish to return” to the House of Lords.
Liz Hurley has encouraged women to check themselves for breast cancer – and warned some are not because they “are scared that it’s self-indulgent to spend time on themselves”.
The British actress and model, who has been a global ambassador for the Estee Lauder Companies’ Breast Cancer Campaign for 30 years, told Sky News’ Jacquie Beltrao the demands of everyday life mean women “always put ourselves last”.
“We’re doing stuff for kids, for husbands, for mothers, for in-laws. There’s so much that we have to do that we tend to come last,” she said.
Hurley, whose grandmother died of breast cancer, said she finds it helps by thinking of breast checks as a way to “keep ourselves healthy in order to continue to take care of everybody else”.
That way, it “doesn’t seem self-indulgent or taking time away from something else, it seems really important”.
Checking one’s breasts “takes two minutes”, she added, or “about the same length of time as brushing your teeth”.
Hurley speaking to Sky’s Jacquie Beltrao
More than a third of women in the UK do not take up the first mammogram appointment they are offered, and a recent study of 500,000 women from Sweden found a similar non-attendance rate there.
More than 11,000 people die from breast cancer every year in the UK, or 31 each day, Cancer Research UK said.
That makes it the second most common form of cancer death, accounting for 7% of all cancer deaths, the charity said.
Asked whether some of the messaging had “fallen on deaf ears”, Hurley said attending screenings, which are free on the NHS, is “definitely advised”, and she suggested all women should familiarise themselves with their breasts.
In the past, the illness was seen as “a disease for older ladies. And we didn’t understand that younger women also get diagnosed. That’s been a lot in the news lately”, Hurley said.
“There appear to be more women, younger women being diagnosed. And that could well be one of the reasons is that people are more breast aware, more self-aware.”
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She told Ms Beltrao, who is a breast cancer survivor, people “have seen you on television talking about breast cancer”.
As a result of more awareness, she said, women have “begun to understand that it can never be too early to start checking your own breasts and to familiarise yourself [with them].
“When you’re younger and you’re not yet having regular mammograms, you do really have to be aware of your own breasts to be able to see if there’s a change, feel if there is a change and go to your doctor.”
The King’s coat of arms will be on the front of all new British passports from December, the Home Office has announced.
The inside pages have also been updated to include images of natural landscapes from all four UK nations, including Ben Nevis, the Lake District, Three Cliffs Bay, and the Giant’s Causeway.
The Home Office said the new passport is the first wholly new design in five years, and it will be the “most secure passport ever produced”.
It will include the latest anti-forgery technology, including new holographic and translucent features.
The updated features will improve verification and make passports significantly more resistant to forgery or tampering, the Home Office said.
The bio page of the new UK passport. Pic: PA
Migration and citizenship minister Mike Tapp said: “The introduction of His Majesty’s arms, iconic landscapes, and enhanced security features marks a new era in the history of the British passport.
“It also demonstrates our commitment to outstanding public service – celebrating British heritage while ensuring our passports remain among the most secure and trusted in the world for years to come.”
The Home Office has confirmed that passports bearing Queen Elizabeth II‘s coat of arms will remain valid until their printed expiry date.
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However, it advised travellers to check their passports’ validity and renew them well in advance of any upcoming trips.
The first modern British passport was introduced over a hundred years ago, in 1915.
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