Britain needs to learn from Donald Trump by being more positive and showing off its strengths, Rachel Reeves has said.
The chancellor said people should be “shouting from the rooftops” and banging the drum for the UK following her trip to the World Economic Forum in Davos this week.
Ms Reeves met global investors in her latest attempt to boost the UK economy after new figures showed only slight growth.
Recent rises in borrowing costs threaten Ms Reeves’s economic plans, while leaders in the business sector continue to voice concerns over upcoming tax rises in April from her autumn Budget.
However, on Monday, the International Monetary Fund forecast that the UK economy would grow by 1.6 per cent in 2025 after a weaker-than-expected 2024.
Speaking to The Times, Ms Reeves said the country needed to be more positive.
She said: “I’ve been in sales mode this week in Davos. We’re all sick of Britain being in the slow lane, whether it’s British CEOs or British investors, and we want to see a revival of those animal spirits so that we can grow the economy and bring investment here.”
When asked if the country could learn from US president Donald Trump, she replied: “Yes, I think we do need more positivity.
“I’ve challenged businesses as well and said no one else is going to speak up for Britain apart from us. It hasn’t been a very British thing to say.
“We are absolutely fantastic as a country, we’ve got four of the best universities in the world. We’ve got some of the most amazing entrepreneurs with fantastic ideas. In all the sectors that are growing globally – AI, tech, clean energy – Britain has got unbelievable strengths in those sectors. We shouldn’t apologise for it and we shouldn’t be all polite about it. We should be shouting from the rooftops.”
But there are some in the business sector who have continued to put challenges at Ms Reeves’s door.
Last week, the boss of Next said the hike in national insurance rates for employers in April will make it more difficult for people entering the workforce. On Thursday, Sainsbury’s announced it was cutting 3,000 jobs two months after it said Ms Reeves’s Budget would cost it £140m.
There has also been criticism in the farming industry, where family farm owners are worried over changes to rules on inheritance tax from April next year.
Rachel Reeves has defended her decision to raise taxes at the Budget, insisting her plan provided the stability needed to secure growth and fix the nation’s services.
When asked if she will reverse the tax rises, Ms Reeves told The Times: “It’s not possible to back down on these things.
“The public finances were an absolute mess. I had to make a number of difficult decisions around welfare, on spending and tax, both in July and in the budget. If I start reversing tax increases, that stability that I’ve returned to the public finances would unravel.
“I know that I will come under pressure from different interest groups. I understand why they make the case that they make. I have a duty to make sure the sums add up.”