Keir Starmer Unveils Support Measures for UK Car and Pharmaceutical Industries Amid Global Economic Instability

Keir Starmer has announced a series of significant measures aimed at bolstering the car and pharmaceutical sectors as the UK grapples with a shifting global landscape following Donald Trump’s imposition of tariffs. During a visit to the Jaguar Land Rover factory in Solihull, Starmer characterised the current economic climate as one of profound uncertainty, highlighting the far-reaching consequences that US tariffs may have on the British economy.

The Prime Minister noted that the newly imposed tariffs—set at 10% for UK exports and a staggering 25% on cars—constitute a formidable challenge. These developments have contributed to instability in global stock markets, with the FTSE 100 reaching its lowest point in a year. Starmer emphasised the need for the UK to navigate this “age of insecurity” with strategic foresight and decisive action.

In his address, Starmer defended the fiscal rules established by Chancellor Rachel Reeves, insisting that now is the time to build upon these frameworks to ensure stability. He reaffirmed Labour’s manifesto commitment to refrain from increasing VAT, income tax, or national insurance for employees until the end of the current parliament. However, he did abstain from making a firm commitment regarding these fiscal rules for the next election.

The Prime Minister unveiled a relaxation of the UK’s electric car targets, permitting luxury brands such as Aston Martin to continue producing petrol vehicles beyond the 2030 deadline. Hybrid models will be allowed on the market for five additional years until 2035. These changes reflect a pragmatic approach to balancing environmental goals with the realities of industry needs.

In a move to invigorate the pharmaceutical sector, Starmer committed to reducing bureaucratic hurdles that currently impede clinical trials. The goal is to establish an average timeline of 150 days for setting up clinical research, a significant reduction from the previous 250 days. Additionally, an investment of £600 million in a health data research initiative based in Cambridge has been announced to further support innovation in this crucial industry.

Starmer reiterated his intention to protect British businesses during a tumultuous economic period, asserting that the government is ready to “shelter” them from the impending storm. He conveyed solidarity to those apprehensive about the economic implications of the recent tariffs, declaring, “we’ve got your back.”

As for the future of the Scunthorpe plant operated by British Steel, which is facing potential closure, Starmer insisted that all options are under consideration. The Prime Minister maintained his commitment to the net-zero agenda while affirming that flexibility is necessary to safeguard jobs in a competitive global environment.

When questioned about how to handle the relationship with Trump, Starmer advocated for a measured approach, cautioning against drastic diplomatic measures that could disrupt established ties. His remarks underscore the government’s broader strategy to collaborate with international partners to optimise trade and minimise barriers.