Keir Starmer has announced wide-ranging measures to support the automotive and pharmaceutical sectors, acknowledging that Britain faces a “changing and completely new world” after the imposition of tariffs by Donald Trump. Speaking at the Jaguar Land Rover factory near Birmingham, the Prime Minister warned of an “age of insecurity” as stock markets declined for a third consecutive day following the US president’s announcement of broad import taxes on countries worldwide.
Starmer described the US tariffs – set at 10% for UK exports and 25% on cars – as a “huge challenge” and stressed that the global economic consequences could be significant. He defended the fiscal rules established by Rachel Reeves in her October budget, stating that the current time is to build on these foundations, although he did not commit to upholding them until the next election.
The Prime Minister is committed to the Labour Party’s manifesto pledge not to increase VAT, income tax, or national insurance for employees until the end of the current parliamentary term. He adjusted targets for electric cars, allowing luxury brands like Aston Martin to extend the production of petrol cars beyond 2030 and for new hybrid sales to continue until 2035.
To boost the pharmaceutical industry, Starmer plans to reduce bureaucratic hurdles so that the average clinical trial can be completed within 150 days instead of 250. He also pledged £600 million to invest in a health data research service in Cambridge. Wall Street markets initially dropped sharply upon reopening before recovering, while in London, the FTSE 100 hit a one-year low.
Starmer promised that these measures are just the beginning, framing them as a “downpayment” and a “statement of intent,” affirming that the government will “shelter British businesses from the storm” and have the public’s support regarding economic concerns.
When questioned about British Steel’s Scunthorpe plant, which may face closure, Starmer stated that all possibilities are being considered, including nationalization. He affirmed his continued support for the net zero agenda but stressed a practical, rather than ideological, approach to achieving these goals.
In response to the query of whether he should be tougher on Trump and withdraw the invitation for a second state visit, Starmer argued that ending that relationship is not in Britain’s best interest.
The Prime Minister emphasized the need for the country to come together to tackle the grave challenges of global instability and ensure Britain’s security in this era. He emphasized the importance of negotiating the best possible deal with the US and working with key partners to facilitate global trade.
Source: https://www.theguardian.com/politics/2025/apr/07/starmer-support-car-pharma-industries-age-of-insecurity
