‘We will work with the US for an economic deal’ – UK treasury minister

We spoke to the Treasury Minister James Murray and began by asking if economic tariffs being added on top of all the other costs of living will be catastrophic.

James Murray: We expect that announcement to affect the UK, along with all countries, but we’re doing everything we can to secure an economic deal.

Jackie Long: You’re doing everything you can, but it wasn’t quite enough, was it? Not up until this point.

James Murray: The negotiations are continuing intensively. They’ve been happening since the prime minister went to Washington earlier in the year. And they’re continuing intensively ahead of tomorrow and beyond, because we know that getting that deal is in the best interest of people in Britain…

Jackie Long: Yes, but you didn’t get the deal, though, did you?

James Murray: We’re still negotiating intensively now, so we still are pushing to do everything we can to get that deal. And, actually, when the president makes announcements tomorrow (Wednesday), we’ll continue to work with his administration to secure a deal, because we know that is what’s in the best interest of businesses.

Jackie Long: But some of those businesses may feel that you don’t have quite the fight that is necessary when taking on President Trump and these tariffs. The Canadian prime minister described Trump’s tariffs as a direct attack on Canadian workers and he vowed to defend the economy, the country, those workers. The EU have promised retaliatory tariffs. Keir Starmer saying, ‘no knee-jerk response here, let’s stay calm’. It’s not bold, is it?

James Murray: But we will always act in the national interest. And the prime minister has been absolutely clear that he will do whatever is necessary in the national interest. Nothing is off the table. We reserve the right to retaliate. But what we also know is that what is the best thing to do to stand up for industries in the UK, the best thing to do to support British industries, is to get that deal.

“Nothing is off the table. We reserve the right to retaliate.”
– James Murray

Jackie Long: But if you do retaliate, how does that work?

James Murray: You’re talking about a hypothetical…

Jackie Long: Well it’s all hypothetical at the moment, but it’s been hanging over the economy, it’s hanging over businesses and they want to get a sense of where the government’s going, don’t they?

James Murray: What I’m focused on right now, what the government is focused on, is preparing for eventualities, but working intensively to try and secure an economic deal. We’re in a different position than some other countries are, we’re in a different position than the EU is because we’re having that negotiation and we should make sure we do everything we can to get a successful outcome of that negotiation for a deal.

Jackie Long: You’ll know it’s a very, very difficult point for millions of people across the country. As we say, there’s been price hikes on energy, water, TV licences, council tax. What can you say to consumers who will be worried, millions of people who will be worried about the future now?

James Murray: I know that people receiving bills today or in the coming weeks will be concerned when they see the prices of things going up. But I would also point out to them some of the changes which are happening as a result of what the government has done. And this is not to say the cost of living crisis is over, but our plan for change is starting to work. We see the national living wage going up by £1,400. We see the pension, thanks to the triple-lock, going up £470. Wages are now increasing faster than prices. Living standards are rising the fastest in two years, and over the course of this parliament, the average person will be £500 a year better off.

Jackie Long: Three million households will lose out under your benefit cuts. Hundreds of thousands of people currently getting the disability benefit PIP will lose an average of £4,500 a year.

James Murray: What we are determined to do is to make sure that people who can work get the opportunity to work. We want to make sure that we reform the welfare system and we know that’s only possible if the system is sustainable. And I think right now no one would argue that the system is sustainable, everyone agrees that the system is broken and doesn’t give the right protection for those in the greatest need or in a sustainable way and it doesn’t help people to get back into work when they’re able to. So we need to reform the system and that’s what’s been driving the changes.

Watch more here:

Trump tariffs: how will US plans reshape the global economy?
What do Americans think of Trump’s tariff plan?
‘Awful April’: how much are your bills rising?