The UK government has launched a diplomatic push for economic growth, recalling top ambassadors to help businesses expand overseas. This move aims to mitigate the impact of Donald Trump’s tariffs. Foreign Secretary David Lammy is deploying senior diplomats nationwide. They are meant to connect firms with global markets, aiming to unlock billions in untapped export potential.
With UK growth stagnating at 0.7% in early 2025, the move comes amid pressure to fill an £18bn budget shortfall. A recent report revealed 70,000 UK firms are export-ready but inactive. This inactivity costs the economy £7bn annually. Lammy called ambassadors the “salesforce for the UK economy,” urging them to forge partnerships in sectors like clean energy and advanced manufacturing as part of a broader diplomatic initiative to boost growth.
The government’s diplomatic push for economic growth also includes plans for regional trade summits. At these summits, mayors and business leaders will meet directly with foreign investors. Lammy emphasized that “every region has unique strengths.” For example, Yorkshire’s advanced manufacturing and Scotland’s renewable energy sector are key opportunities.
However, some analysts warn that without faster export financing and streamlined regulations, the initiative risks becoming symbolic. As global trade tensions rise, the success of this campaign to increase economic growth through diplomacy may determine whether the UK can offset sluggish domestic performance with international gains.
Ambassador to Japan Julia Longbottom kicked off the effort in Portsmouth, promoting defence and tech collaborations. Meanwhile, Belgium’s envoy Anne Sherriff toured Welsh semiconductor innovators, while South Korea’s ambassador targeted Teesside’s wind energy hub. The initiative of diplomatic efforts for growth aligns with Labour’s industrial strategy, focusing on eight priority sectors.
Critics warn Trump’s tariffs still threaten supply chains, despite a recent UK-US deal. The initiative follows Chancellor Rachel Reeves’ emotional Commons appearance, hinting at budget strains after scrapping welfare cuts. Lammy insists this diplomatic campaign for growth will “deliver change,” but businesses await tangible results.
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