LABOUR has been told to stop “scraping around” for minor deal changes with the US and to work on building better ties with the EU following a warning that the world’s economy is significantly slowing down.
The International Monetary Fund (IMF) warned on Tuesday that global economic growth is projected to fall from 3.3% in 2024 to 2.8% in 2025, with the UK’s growth predicted to be slashed from 1.6% to 1.1%.
The latest World Economic Outlook report said the UK’s economy forecast partly reflects Donald Trump’s tariffs, along with weaker buying habits by people amid higher inflation driven by bills and energy price hikes.
The Labour Government has been attempting to lower the 25% tariffs on British steel, aluminium, and cars, along with the 10% blanket import tax on other goods.
However, SNP MP Dave Doogan has called on Starmer to make a “meaningful move” towards improving relations with the EU amid global economic “storm clouds” caused partly by the US President's tariffs.
Doogan added it was “not good enough” for Labour to blame global events for the UK’s economy’s projected downturn, as he claimed Brexit and the recent rises in National Insurance have had a negative impact.
“Growth slashed, unemployment rising and the cost-of-living soaring - this is a far cry from the change voters were promised by the Labour Party before the election,” he said.
“It's not good enough to blame global events when it is policies from the Labour Government - be it National Insurance rises or Brexit - that are hammering businesses and public services in the here and now.
“The Labour Party keep telling us the world has changed, but for those words to mean anything then there must be a response to match the weight of the IMF warnings today - so far that's been missing from Sir Keir Starmer with no meaningful move towards alignment with the EU and a dedication to fiscal rules unfit to shelter us from the global economic storm clouds that are fast gathering.”
Last week, Starmer was reportedly warned by the EU against making trade concessions to Trump, which could harm the UK’s Brexit terms.
Insiders in Brussels and the UK reportedly said the EU has been in “constant contact” with the UK Government discussing the “limits of what would be acceptable” amid fears that the Prime Minister could jeopardise any Brexit terms in his pursuit of a US trade deal to lower tariffs.
Brussels officials have concerns that UK concessions to the US on agri-food imports could harm the Labour Government's goal of a deal to ease cross-border food trade with the EU in a bid to lower costs for supermarkets.
EU officials are also reportedly concerned about other demands from Trump, including the UK exempting American companies from carbon taxes due to come into force in 2027.
Doogan has now called for Starmer not to go chasing “minor changes” to food standards, as any economic deal with the US would “pale in comparison” to the benefits of the European Single Market.
He said: “The EU is where most European nations seek both economic and national security, yet we find ourselves isolated in broken, Brexit Britain scraping around for a deal on minor changes to food standards while we are being whacked by Trump tariffs - the Labour Party needs to wake up to the reality that any economic deal with the United States will always pale in comparison to the benefits of the European Single Market.
“The IMF has forecasted an economic storm headed directly for these islands and it's time Westminster got its head out of the sand, stopped playing to Farage's tune and looked to our reliable allies in Europe for protection and economic growth.
“Scotland cannot afford to be tied to broken Brexit Britain and it's becoming clearer by the day to Scots that a successful future lies in working with our European neighbours, not relying on Westminster governments that treat our country as an afterthought.”
The UK Government has been approached for comment.
