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Sir Keir Starmer and his chancellor Rachel Reeves have sought to talk up the UK’s economic prospects ahead of high-level meetings in Davos next week, as they presented Britain as a beacon of stability in “an uncertain world”.
The UK prime minister, who may unexpectedly attend the World Economic Forum, told Labour MPs at a meeting on Monday that the UK was on track for “change and renewal” this year.
Reeves said she will travel to Davos with a view to bolstering 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 travel to the forum but his allies said there was now a “50:50 chance” he would attend, notably to discuss Ukraine with US President Donald Trump.
Starmer and Reeves are attempting to turn the page after a chaotic build-up to the Budget last November that stoked uncertainty among businesses about UK tax and investment.
Since Reeves’ £26bn package of tax rises was unveiled, gilt markets have calmed as inflation concerns ease and investors bet on further interest rate reductions by the Bank of England.
Labour officials said both Starmer and Reeves were determined to strike a more optimistic tone.
Speaking to the Parliamentary Labour 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 reduced interest rates six times since he entered Downing Street in July 2024, making “a huge difference for families and businesses”.
He defended his heavy focus on engagement with countries including the US and major EU nations, saying: “In a world this volatile — you have to be on the pitch. You have to be in the room to tackle the issues working people care about. The cost-of-living crisis will not be solved by isolationism.”
His comments come after Nato was thrown into fresh turmoil by Trump’s vow to take control of Greenland, a Danish territory, following the US president’s military operation to capture Venezuela’s strongman leader Nicolás Maduro.
Speaking ahead of a reception with business leaders at 11 Downing Street on Tuesday, Reeves said she would go to Davos with the goal of bolstering investment in the UK.
She is due to attend the forum and hold meetings with business leaders including Jamie Dimon of JPMorgan and Jane Fraser of Citigroup.
Reeves said: “At Davos we’ll be working hand in glove with British business to bat for Britain on the world stage, get deals done and boost investment into fast-growing UK sectors.”
The UK delegation to the Swiss mountain resort will include business secretary Peter Kyle as well as Varun Chandra, Starmer’s business adviser.
