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Sir Keir Starmer and his Chancellor Rachel Reeves have tried to talk up Britain’s economic prospects ahead of high-level meetings in Davos next week, as they presented Britain as a symbol of stability in an “uncertain world”.
Britain’s prime minister, who may unexpectedly attend the World Economic Forum, told Labor MPs at a meeting on Monday that Britain is on a path of “change and renewal” this year.
Reeves said she would be traveling to Davos with the aim of promoting investment in the UK, claiming that “even in an uncertain world, the UK stands out – resilient, innovative and open for business”.
Starmer had not intended to attend the forum, but his aides said there was now a “50:50 chance” he would attend, specifically to discuss Ukraine with US President Donald Trump.
Starmer and Reeves are attempting to turn the page after the chaotic build-up to the Budget last November, which has created uncertainty among businesses about UK tax and investment.
Since Reeves unveiled his £26bn package of tax rises, gilt markets have calmed as inflation concerns eased and investors bet on further interest rate cuts by the Bank of England.
Labor officials said both Starmer and Reeves are committed to taking a more optimistic approach.
Speaking to the parliamentary Labor Party, Starmer doubled down on his pledge to tackle the high cost of living, pointing out that wages were rising faster than prices and that the BoE had cut interest rates six times since entering Downing Street in July 2024, making “a huge difference to families and businesses”.
He defended his heavy focus on engagement with countries including the US and key EU countries, saying: “In this volatile world – you have to be on the ground. You have to be in the room to deal with the issues that working people care about. The cost-of-living crisis will not be solved by isolationism.”
His comments came after NATO was thrown into fresh turmoil by Trump’s pledge to seize control of the Danish territory Greenland, following the US president’s military operation to capture Venezuelan strongman Nicolas Maduro.
Speaking ahead of a reception with business leaders at 11 Downing Street on Tuesday, Reeves said she would go to Davos with the aim of promoting investment in the UK.
She will attend the forum and hold meetings with business leaders including JPMorgan’s Jamie Dimon and Citigroup’s Jane Fraser.
Reeves said: “In Davos we will work closely with British business to bat for Britain on the world stage, striking deals and promoting investment in fast-growing UK sectors.”
The UK delegation to the Swiss mountain resort will also include Trade Secretary Peter Kyle as well as Starmer’s trade adviser Varun Chandra.
