Starmer must embrace Brexit freedoms, say former chancellors
Nadhim Zahawi and Kwasi Kwarteng urged the Prime Minister to make the UK a low-tax country and help it thrive at a time of global economic uncertainty.
Three former Cabinet ministers, two former ministers and a Tory peer also called on Sir Keir to slash red tape and seek to strike more free-trade agreements.
It came as Nigel Farage, the Reform UK leader, said the Prime Minister must take 'decisive' action and 'change course' in light of Mr Trump's tariff regime.
Jeremy Hunt, the chancellor under Rishi Sunak, wrote for The Telegraph earlier this week that the Government should aim to turn Britain into 'Singapore-on-Thames' and reject trade barriers.
The UK escaped the worst of Mr Trump's wrath this week as the US confirmed it will face tariffs of 10 per cent, half of the 20 per cent levy that will be applied to imports from the European Union.
However, the Government nonetheless announced a four-week consultation on possible retaliatory tariffs in response. If they are imposed, any duties are likely to target iconic American exports such as Harley-Davidson motorcycles and Levi jeans. Ministers have insisted any retaliation would only be a last resort.
'Prime Minister must discover his inner Adam Smith'
Mr Zahawi told The Telegraph: 'Jeremy Hunt is absolutely right – protectionism, however tempting, is not the answer to Trump's trade barriers. After all, tariffs are paid by domestic consumers, not foreign exporters.
'Instead of drawing up the drawbridge to global markets, we should emulate the success of free trading, pro-business jurisdictions like the UAE and Singapore's, where a steadfast commitment to free trade has built wonders out of desert and jungle.
'Having left the EU, the UK is now uniquely poised to carve out a profitable position in today's turbulent global economy. With lower import tariffs than the EU and no obligation to retaliate, we should seize the opportunity to establish ourselves as Europe's free-trade hub.'
Mr Zahawi went on to insist trade must be 'only part of the picture', adding: 'The Prime Minister and Chancellor need to discover their inner Adam Smith to help Britain bounce back.'
Mr Kwarteng, who served as business secretary and a Brexit minister before his stint in No 11, said Sir Keir should protect his Brexit dividend by not hitting the White House with retaliatory tariffs.
He said: 'It wouldn't make sense for us to do a tit-for-tat protectionist measure.
'It would simply encourage the Americans to increase the tariffs on us, say from 10 per cent to 20 per cent, thereby destroying the Brexit benefit of being outside the EU in this case.'
Sir Liam Fox, a former international trade secretary, said it was an 'inescapable fact' that had Britain not voted to leave the EU in 2016, it would be suffering the same higher tariff rates as the European Union.
'The glorious irony of an ultra-Remainer Government using Brexit as their main negotiating weapon needs to be followed by the logic of recognising that further liberalisations for Britain could place us in an even better global position,' he said.
Steve Barclay, a former chief secretary to the Treasury, added: 'In a rapidly changing global trade situation, the UK must seize the post-Brexit freedom we have to boost our competitiveness and look to fast growing markets.'
The UK has struck 39 trade agreements with 73 partners since finalising its departure from the European Union in 2020.
At the end of last year, it formally acceded to CPTPP, the Asia-Pacific trade bloc, which removes tariffs and opens markets to some of the fastest-growing economies in the world.
On Friday, four of the Brexit 'Spartan' Tory MPs – who voted on three occasions in 2019 against Theresa May's Brexit deal – joined calls for Sir Keir to adopt a Singapore-like approach.
Steve Baker, a former Brexit minister, said: 'Unless we drive for growth Singapore style, this country faces bankruptcy as set out in the OBR's long-term projections.'
Lord Mackinlay, who became a Tory peer last year, said: 'We have post-EU freedoms to create the most dynamic, innovative and business-friendly environment in the world.
'There's a lot to like about Singapore-on-Thames, Severn, Trent, Clyde. Will this misguided Labour government take the opportunity?'
Mark Francois, the chairman of the European Research Group, said: 'If we do manage to get a trade deal with the US, I can't wait to see our Ambassador, one Lord Mandelson, celebrating that we were only able to do so because we left his beloved EU. He who laughs last laughs longest.'
Sir John Redwood, a former head of the No 10 policy unit under Margaret Thatcher, noted scope for 'stunning Brexit wins' but added: 'I agree with Jeremy Hunt, but he didn't do it when he was Chancellor, did he?'
Asked why Mr Hunt had not cut taxes while in office, Mel Stride, the shadow chancellor, told GB News: '[Covid] came at a huge cost in terms of spending support, jobs through furlough and so on.
'We had a similar external shock to the economy with the UK-Russia war, which jacked up inflation to over 10 per cent.'
In an article for The Telegraph, Mr Farage said Mr Hunt 'first targeted non-doms and raised taxes to the highest level since the 1940s'.
'Britain does have opportunities – but only if Brexit is made to work,' he said.
'Perhaps we'll look back on Donald Trump's US Liberation Day speech as the moment when we finally woke up and changed course.'
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