UK Chancellor Rachel Reeves has pitched Britain as a haven of stability at the World Economic Forum in Davos, announcing new incentives for global tech and science firms amid escalating trade tensions with the United States. The move comes as President Donald Trump threatens 10 per cent tariffs on UK goods from February 1, rising to 25 per cent from June unless Denmark agrees to sell Greenland to Washington.
Reeves unveiled plans to reimburse visa fees for select trailblazers in deep tech sectors and workers in priority industries. The government will also offer fast-track processing for sponsor licenses to companies seeking to expand their UK footprint. The initiative targets firms in AI, life sciences and sustainable energy industries.
As she arrived at the gathering in Davos, Switzerland, Reeves said: «In a volatile world Britain stands out. This government is making sure Britain is home to the stability, talent and capital that businesses and investors want and that drive greater growth. Some countries give you a platform, but Britain gives you momentum. My message at Davos this week is clear: choose Britain – it's the best place in the world to invest.»
Trump's tariff threats
Trump's threatened tariffs extend beyond Britain to Denmark, Norway, Sweden, France, Germany, the Netherlands and Finland. The US President has demanded the «complete and total purchase of Greenland» from Denmark, using the tariff threat as leverage to pressure the Nordic nation.
Economic warnings suggest the new export levy could wipe 0.1 per cent off Britain's GDP, potentially rising to 0.3 per cent if tariffs reach 25 per cent. The escalation could push the UK toward recession.
Turning crisis into opportunity
Business Secretary Peter Kyle, also attending the summit, told the Press Association the UK must seek opportunities amid global upheaval. «The risks are very, very clear, but our country in adversity has benefited more than others, and I want to – now adversity is being normalised in a global economy – I want us to really look deeply into that and see where the opportunity is for British businesses, exporters, innovators, but also how we as a country can be more entrepreneurial, fleet of foot, bolder when it comes to seeing global opportunities amidst the uncertainty and upheaval», he said.
Kyle identified China as a potential «land of opportunity» for British businesses. The Prime Minister plans to visit China early this year to boost trade links with the world's second-largest economy and largest manufacturer.
Government response to crisis
Prime Minister Sir Keir Starmer made an emergency address from Downing Street on Monday morning, calling for national unity. He described it as a «moment for the whole country to pull together» and said the «right way to approach an issue of this seriousness is through calm discussion between allies».
Starmer spoke with Trump on Sunday night and will speak again in the coming days. Kyle acknowledged the UK's relationship with the US administration is being tested but emphasised «good, strong relationships» with counterparts including US commerce secretary Howard Lutnick and trade representative Jamieson Greer. «At moments like this, relationships are tested. And yes, of course, we're having frank conversations. But in my experience, all of the key protagonists in the administration thrive on frank conversations and wouldn't have it any other way», Kyle said.
Note: This article was created with Artificial Intelligence (AI).
