In a bid to attract global investors amid growing economic volatility, Chancellor Rachel Reeves and Business Secretary Peter Kyle will use this week’s World Economic Forum in Davos to position the UK as a stable and attractive destination for business.
With President Trump once again threatening to disrupt global trade through tariffs linked to his demands over the US acquisition of Greenland from Denmark, Reeves will make a series of pointed remarks emphasising Britain’s advantages. “In a volatile world, Britain stands out,” she will say. “This government is making sure Britain is home to the stability, talent and capital that businesses and investors want and that drive greater growth.”
Meanwhile, Kyle has underscored that the “normalisation” of disruption which Trump represents could present opportunities for UK exporters. While acknowledging that tariffs are a “lose-lose” policy with “very high stakes”, he believes there are also “opportunities in adversity” that British firms can seize.
The government’s message at Davos is clear: choose Britain – it’s the best place in the world to invest. With warnings that new US export levies could wipe 0.1% off the UK’s GDP, potentially tipping the struggling economy into recession, ministers are determined to turn the crisis to the country’s advantage.
One potential area of opportunity is China, where the Prime Minister is expected to visit early this year to boost trade ties. While acknowledging the unique challenges of the UK’s relationship with China, Kyle said: “Because of the scale of the opportunity and the nature of the issues that need handling, it is a more extreme example.”
The government is also seeking to manage the fallout from the Greenland dispute with the Trump administration. Kyle admitted that “at moments like this, relationships are tested.” However, he expressed confidence that “all of the key protagonists in the administration thrive on frank conversations and wouldn’t have it any other way.”
As the UK navigates these turbulent global waters, Reeves and Kyle are positioning Britain as a haven of stability that savvy investors would be wise to choose.
