Raab Talks Up Recovery Amid Covid Criticism: U.K. Tory Update
U.K. Prime Minister promised the coronavirus crisis wouldn’t derail a “massive domestic agenda”.
(Bloomberg) -- Foreign Secretary Dominic Raab said the U.K. will “bounce back stronger” after the coronavirus pandemic, delivering an upbeat keynote speech to the Conservative Party’s annual conference at a time of growing tensions over the government’s handling of the crisis.
The event is taking place online this year due to the virus, robbing ministers of the chance of face-to-face meetings with Tory members and the opportunity to quell dissent. Prime Minister Boris Johnson has faced criticism over lockdown measures and problems in the virus testing system.
Key Developments:
- The U.K. and the European Union agreed to step up negotiations over a post-Brexit trade deal
- Cabinet Office Minister Michael Gove said he’s “optimistic” about the chances of an EU trade deal
- Johnson told the Telegraph he wants a “free market-led” recovery; he denied tensions with Chancellor of the Exchequer Rishi Sunak
- Chief Secretary to the Treasury Steve Barclay said the government won’t introduce austerity as the U.K. recovers from the pandemic
- Trade Secretary Liz Truss said the government is working to prevent “predatory” bids for U.K. companies
Raab: U.K. to ‘Bounce Back Stronger’ (3:30 p.m.)
Foreign Secretary Dominic Raab struck an upbeat tone in his keynote speech to the Tory conference, urging the party “not to shrink into the shadows but to look to the stars.”
He questioned why, during the coronavirus crisis, people found it “so hard” to take pride in Britain and why “the positive things we achieve get so little air time.” He cited the U.K.’s efforts to secure a Covid-19 vaccine and said the country will “bounce back stronger” from the pandemic.
Continuing a theme of the conference so far, Raab also attacked the Labour Party, saying it wouldn’t stand up for Britain. He criticized leader Keir Starmer for supporting Jeremy Corbyn’s bid for the premiership last year.
Johnson, EU Set Sights on Deal (3:20 p.m.)
The U.K. and the European Union stepped up their negotiations over a post-Brexit deal following a crunch call between Boris Johnson and the European Commission President Ursula von der Leyen. With less than two weeks before the prime minister’s deadline to secure an accord, both sides acknowledge there are still significant divides to bridge.
Truss: Must Prevent ‘Predatory’ Takeovers (3:10 p.m.)
International Trade Secretary Liz Truss said the U.K. must prevent “predatory” company takeover bids from overseas “that don’t necessarily have Britain’s best interests at heart” -- particularly during the pandemic when many companies are undervalued. She declined to give examples.
Truss said Business Secretary Alok Sharma is “working very carefully” on the issue and taking lessons from countries such as Australia, which she said have “strong protections to ensure proper investor screening.”
She also said the U.K.’s global tariff for when it leaves the European Union is giving impetus to trade negotiations, and said the government is working to secure deals with countries including Australia, New Zealand, the U.S. and joining the Trans-Pacific Partnership, as well as rollover deals with Canada, Vietnam and Singapore. She said “depressed domestic demand” due to coronavirus means Britain needs a “bigger slice of the international pie.”
Gove ‘Optimistic’ About EU Deal (12:10 p.m.)
Cabinet Office Minister Michael Gove said he is “optimistic” of reaching a trade deal with the European Union but said the negotiations had been a “tough process.” The British government’s plans to do things differently are “difficult” for the bloc.
“I expect there willl be one or two ups and downs on the way but I am optimistic we will get a deal,” he said at the Conservative Party conference. Gove also said an agreement would be “hugely helpful” for sectors of the economy, though he said the U.K. has made “extensive preparations” for any outcome.
Tories to Set Up New HQ in Leeds (11:45 a.m.)
The Conservative Party confirmed it will set up a new headquarters in Leeds, northern England, as part of its “leveling up” agenda. “We’re in it for the long haul,” Amanda Milling, co-chairman of the party, told the conference. She also announced a fund to support Tory MPs in the so-called Red Wall seats, districts which typically voted for the Labour Party but switched to the Tories last year.
Cabinet Office Minister Michael Gove later said more government departments and agencies should move outside London to leverage skills in the regions. He said new ways of working, with more people staying home, would allow more “decision-makers” in Whitehall to be dispersed around the country.
Barclay: Announcement Soon on Airport Tests (10:10 a.m.)
Barclay said he expects the government to make a statement in the coming days on Covid-19 tests at airports, without giving details. He said he recognizes testing is a “key issue” in the sector and the government is having “live conversations” with the industry.
Speaking before Barclay, Heathrow Chief Executive Officer John Holland-Kaye reiterated the industry’s demands to use testing to open up key aviation routes, including from the U.S.
Barclay: No Austerity After Pandemic (10 a.m.)
Barclay told the Conservative conference that while the government will seek “maximum value for money,” there would be no austerity policy as the U.K. recovers from the pandemic.
He also warned that a Covid-19 vaccine could take longer than six months, and the government is focused on keeping as much of the economy running as possible. “We are going to be living with it for longer than we hoped for, at least the next six months and it could be longer, we don’t know,” Barclay said, adding: “For HIV we don’t have a vaccine.”
Patel to Say Asylum System Broken: Times (Earlier)
Home Secretary Priti Patel will tell the Conservative party conference the U.K.’s asylum system is broken, the Times newspaper reported on Saturday. She’s also expected to reveal details of the upcoming immigration bill intended to speed up the process of considering asylum applications.
Patel’s speech on Sunday comes as the government considers plans for offshore processing centers for asylum seekers, which triggered a backlash from opposition politicians and human rights groups.
Johnson Promises ‘Massive Domestic Agenda’ (Earlier)
In an interview with the Telegraph newspaper, Prime Minister Boris Johnson said the coronavirus crisis wouldn’t derail his government’s “massive domestic agenda” and ministers are pursuing a “free market-led recovery” from the pandemic. He also denied that there was tension between him and Chancellor of the Exchequer Rishi Sunak. He said he wants to create a “Generation Buy” of young people purchasing homes.
Ahead of crunch talks with European Commission President Ursula von der Leyen Saturday, Johnson said he’s “pretty optimistic” about a trade deal coming together. The chances are “very good if everybody just exercises some common sense and looks at the deal that is there to be done,” he said.
Earlier:
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