UK-US Trade and Tariffs

Lord Young of Norwood Green Excerpts

Thursday 3rd April 2025 Lords Chamber

[Baroness Gustafsson (Lab)]

My Lords, 0.1% GDP growth is not enough. This Government have made no apology for putting growth as their number one priority. I think all sides of this House agree that driving up growth can only benefit the UK and the people operating within it. We take it incredibly seriously, which is why conversations such as this feel so at odds with trying to create an industry that thrives in and benefits from an open and free trade environment. It is why many of us feel sad as we think about tariffs, or reciprocal tariffs as a headwind to them.

But we can secure an agreement with the US that allows us to navigate through this. There will come a time when we look back on this in the rear-view mirror and we are able to establish and support a lot of those sectors that we rely on to support growth. We will hold dear a lot of the principles that we have already written down and they will steer us through that, whether it is things such as the industrial strategy or going through and identifying those core sectors that the Government will wrap their arms around and support to make sure that our growth numbers are not 0.1% or 0.2% but 1%, 2% and then beyond as we really try to support it.

But I know that it is not a quick fix. I understand that we cannot just go to the growth cupboard in the corner and take growth out of it. A decision to turn to growth does not drive growth—multiple small cumulative decisions help turn the ship towards something that supports businesses and communities to grow. For example, it is about thinking about how in some instances regulation is acting as a headwind against growth and enabling things such as planning to make it easier for businesses to build factories and data centres in their communities to help drive that growth. We are seeing a lot of those initiatives to try to shape and encourage growth. However, I share the sadness that sometimes, it feels as though, when we are in a world talking about tariffs, that works against some of that growth agenda.

[Lord Young of Norwood Green (Lab)]

I congratulate the Minister on her appointment. She brings a great deal of business experience to the House. The UK is still a great place to invest in. We have one of the greatest creative economies in the world; we should be pushing that and making it clear. It is not a case for gloom.

[Baroness Gustafsson (Lab)]

I am shamelessly championing and promoting the UK and all its wonderful benefits wherever I can, and will continue to do so. I am a natural optimist by heart and, even today, I am still incredibly optimistic and excited about the opportunity that the UK presents.