UK Chancellor John Healey is set to press European Union finance ministers on Friday to ensure British industry is not excluded from the bloc’s new strategy to shield manufacturing from unfair competition, particularly from China. Speaking at a meeting in Dublin, Healey plans to advocate for strengthened partnerships in technology, defence, and manufacturing sectors.
According to Treasury officials, the Chancellor will argue that the EU’s “Made in Europe” initiative, formally known as the Industrial Accelerator Act (IAA), should be structured to reinforce UK-EU relations rather than erecting fresh obstacles. There are significant concerns within the UK government that the scheme could inadvertently shut British firms out of key European supply chains.
Officials noted that Healey aims to mitigate the economic fallout of Brexit and foster closer commercial links with the EU, but insisted this must come without compromising UK interests. The push follows the collapse of negotiations last year regarding UK participation in an EU defence loans facility, a dispute primarily centred on the financial contribution required from London.
Healey emphasized the importance of avoiding past mistakes. “The next chapter of Britain’s growth story will be written in more places,” he said. “To me, closer ties with the EU means British businesses – wherever they are based across the UK – get better access to both the supply chains and the customers they need to grow.”
The upcoming discussions come amid a broader reset in UK-EU relations, although a planned summit was delayed following Prime Minister Sir Keir Starmer’s resignation. Treasury sources now anticipate that high-level talks will resume in November.
In addition to industrial policy, Healey is exploring membership in the Defence, Security and Resilience Bank (DSRB), a global investment vehicle led by Canada designed to help governments borrow at lower rates for military spending. This marks a shift from his predecessor, Rachel Reeves, who rejected the proposal. Securing funding for the UK’s expanding defence obligations remains a critical challenge as the Chancellor prepares for the October Budget and the subsequent spending review.
Interesting about the Defence Bank membership. That’s a clear shift from Reeves’ policy. Might actually help the October budget.
Starmer resigned and now they delay the summit? Priorities seem a bit chaotic if you ask me.
Good move by Healey. We cannot afford to be shut out of the European industrial base while competing with China.
Is this just spin? Last year’s defence loan talks collapsed over money. Will Brussels take us seriously this time?
Finally, a pragmatic approach. The UK manufacturing sector desperately needs access to these supply chains post-Brexit.