This week, we could see a UK hike in defence spending, a visit of a high-profile US governor to talk clean energy, and political parties continuing to vie for voter attention despite Parliament being on recess.
Today in Trade: Warning on SPS deal costs
The Food and Drink Federation’s (FDF) CEO, Karen Betts, has warned that the UK will struggle to remove the red tape on food and drink exports to Europe via its ‘veterinary agreement’.
“The UK is trying to do in two years what Switzerland did in four or five. And we’re starting from a standing start,” Betts told the FT, adding that the ambitious timelines “are now looking very tight”.
She said that the current environmental secretary, Emma Reynolds, had achieved a lot since her appointment, but there was still “a lot of catching up to do” to agree a deal by the middle of 2027.
After the UK-EU reset summit last year, the government promised a number of changes to help smooth the trade of sanitary and phytosanitary (SPS) goods, including a deal on veterinary standards.
Earlier this month (5 February), Alistair Carmichael, chair of parliament’s Environment, Food and Rural Affairs Committee, warned that while an SPS deal with the EU could provide a “feast of benefits” for UK exporters, there were a number of issues around “dynamic alignment” that could cause issues.
Carmichael urged the government “to aim for a Swiss-style carve out of dynamic alignment with the EU regarding animal welfare.”
Defence and EU relations
The UK government is considering hiking its defence spending, according to the BBC.
After last week’s Munich Security Conference, which featured talks between world leaders and discussions over the EU-UK relationship, prime minister Sir Keir Starmer is said to be weighing up an earlier-than-expected boost in defence spending.
He previously committed to spending at least 2.5% of GDP on core defence by 2027, partly in response to pressure from US President Donald Trump for NATO allies to cover their own spending.
However, two European diplomats claimed there was “frustration” with the UK’s slow rearmament process, according to Politico, with a long-delayed Defence Investment Plan not yet published. The officials warned that this might be harming foreign defence investment in the UK.
Newsom visits London
The governor of California and frontrunner for the Democratic presidential nomination, Gavin Newsom, visits London today (16 February) for a meeting with UK energy secretary Ed Miliband. They are expected to sign a memorandum of understanding (MoU) on clean energy and climate.
Newsom has previously attacked Europe’s leaders for “rolling over” for Trump, but changed his tune yesterday in an interview with Deutsche Welle in which he praised the EU’s new approach to dealing with the White House after the conference in Munich.
"The EU, I feel, is more centred than it's been in some time because they recognise what's at stake."
Details of the MoU could emerge later in the week, but there could also be a fiery response from Trump himself, who has often used tariffs to threaten countries who displease him.
MPs in recess but politics continues
As Parliament’s recess continues, political leaders are using the free time to shore up their positions.
The Labour government has been moving forward with plans to ban under 16s from social media and closing loopholes in the Online Safety Act that apply to AI chatbots, despite warnings from the US that these moves could bring tariffs.
Additionally, Downing Street could be going through further re-organisation as Starmer looks to reshape his operations after last week’s departure of key staff.
Reform UK is holding a press conference today in Romford, with “special guests” promised and likely questions about the party’s candidate for the Gorton and Denton by-election.
The Scottish Conservative Party is holding its conference this week (20-21 February) as it looks to build support ahead of May’s Scottish Parliament elections.
Other dates for the diary
- Monday: Festivals of Carnival in Argentina and Brazil, Chinese New Year’s Eve and US Presidents Day
- Tuesday: Shrove Tuesday, ‘Ring of Fire’ annular solar eclipse
- Wednesday: Japanese prime minister, Sanae Takaichi, expected to launch her new cabinet
- Thursday: London Fashion week begins
- Friday: UK flash Purchasing Manager’s Index released
- Saturday: Six Nations rugby tournament continues with England v Ireland and Wales v Scotland
- Sunday: Winter Olympics concludes
