GovWire

Economic and defence cooperation must be the two pillars of the UK-US alliance, the Prime Minister will tell US lawmakers and businesspeople this week, as he travels to Washington DC.

Pointing to the role our defence partnership has played in protecting our people for decades, the Prime Minister will say that extensive cooperation on economic issues will allow us to do the same thing for the next century.

In recent months and years, the world has seen an increasing number of examples of hostile states using economic coercion to their advantage. From Putin driving up European energy prices, to Chinas extensive use of sanctions to punish individuals and government who speak out against human rights abuses.

While our traditional security remains paramount, those who seek to do us harm are increasingly targeting other domains. They are manipulating global markets, withholding crucial resources and trying to establish a stranglehold over the industries that will define our future.

If we are to stay one step ahead and ensure the safety and prosperity of our citizens, we need to make sure our cooperation on economic security is as extensive as our cooperation on traditional security.

The existing strength of the UK-US economic relationship means we are ideally placed to take on these challenges together. Our trade relationship is worth 279 billion a year, and the amount invested in one anothers economies has now surpassed 1 trillion.

US firms have committed more than 14 billion of new investment in the UK, announced today. This includes 583 million of investment in projects including World Fuel Services and Melds green hydrogen facility in Hull, a new Mars facility in the London Gateway Freeport, expansions of BNY Mellons existing and Vanguards new Manchester offices and a new HCA Healthcare facility in Birmingham. Between them these new investments will create almost 2,500 jobs.

Further investments by US companies in the UK include 9 billion from investment management company BlackRock taking BlackRocks total UK investment to 500 billion, 2.4 billion invested by Blackstone, 2 billion invested by KKR and 521m invested by CD&R.

These investments are just a snapshot of the vast economic connections between the UK and the US. In recent months US company Nuveen has acquired Arcmont Asset Management for 800 million and Longfellow have established a 1.5 billion life sciences and innovation real estate fund bringing the total value of major investments by US companies into the UK to nearly 17 billion since the Prime Minister took office.

Because our economies are so interlinked, with nearly 1.5 million Brits working for American companies and more than 1.2 million Americans working for British companies, it is paramount that we approach these issues in a unified and coordinated way.

The Prime Minister will use his visit to the US this week to drive forward these efforts. In his meetings with President Biden, Congresspeople and American business leaders he will advocate for further joint action to safeguard against external threats to our economies, strengthen our supply chains and support the industries of the future.

The Prime Minister said:

The UK and US have always worked in lockstep to protect our people and uphold our way of life. As the challenges and threats we face change, we need to build an alliance that also protects our economies.

Just as interoperability between our militaries has given us a battlefield advantage over our adversaries, greater economic interoperability will give us a crucial edge in the decades ahead.

By combining our vast economic resources and expertise, we will grow our economies, create jobs and keep our people safe long into the future.

A re-energised and enhanced economic relationship between the UK and the US presents huge opportunities for our people - supporting the PMs priority to grow our economy and create better paying jobs.

Every day, innovations in science and technology are unlocking new possibilities for our people and businesses doing everything from bringing down the cost of the things we buy to accelerating our transition to clean energy.

In recent years the UK and US have taken a number of steps to enhance our economic relationship, removing barriers including the ban on British beef and lamb exports, and tariffs on steel and whisky. In recent weeks we agreed a new deal to give architects more access to US markets.

Quotes from US businesses:

Stephen A. Schwartzman, Chairman and Chief Executive Officer, Blackstone

As one of the largest overseas investors in the UK, Blackstone is a strong believer in the resilience of the UK economy. The building of our new headquarters in London is a clear vote of confidence in its future as a financial centre.

Adebayo Ogunlesi, Chairman and Chief Executive Officer, Global Infrastructure Partners

The United Kingdom has always been, and remains, an important market for Global Infrastructure Partners (GIP). We believe the UK is an attractive market for infrastructure investments and are privileged to have invested in some market-leading infrastructure companies that provide essential services in the UK, including London City Airport, London Gatwick Airport, Edinburgh Airport, Hornsea 1, Peel Ports, Vantage Towers and Scotia Gas Networks. We look forward to continuing to invest in and grow our companies and explore new investment opportunities.

Rob Sharps, CEO and President, T. Rowe Price

The UK continues to be a world-leading center for asset management. We appreciate the UK governments commitment to pursue targeted policy reforms to ensure that remains true for many years to come. T. Rowe Price has been in the City of London since 1979 and intends to stay for the foreseeable future. Our expanded presence in the City underscores our commitment to our clients, helps us attract and retain top talent, and supports our long-term international growth plans.

Adam Sichol, Co-Founder and Chief Executive Officer, Longfellow Real Estate Partners

With a rich history of innovation and research, the United Kingdom is the next logical step of growth for Longfellow. Our two nations have an incredible bond that encourages collaboration, growth, and ultimately the creation of thoughtful, world-class space that supports the UKs leading industries such as life science and innovation ecosystems.

Jose Minaya, Chief Executive Officer, Nuveen

We have seen continued potential to expand our investment capabilities and talent in the UK, most recently demonstrated through our $1 billion acquisition of Arcmont Asset Management, one of the largest private lenders in Europe. We also continue to deepen our real estate and alternatives capabilities in London and Edinburgh. Our continued success has naturally required a need to support that growth with top industry talent, and we now have almost 400 employees in the UK, including several key global company leaders. That is double our head count from 2019 and makes the UK our largest base by personnel outside of the US.

Michael J. Kasbar, Chairman and Chief Executive Officer, World Fuel Services Corporation

We are excited to continue investing in the United Kingdom to support their critically important energy transition objectives that drive energy independence and decarbonization. This is just the latest chapter of World Fuels commitment to clean energy and one that we expect will foster further investment in the United Kingdoms energy diversification strategy.

Phebe N. Novakovic, Chairman and Chief Executive Officer, General Dynamics

General Dynamics has been a partner with the UK defence industry and the Ministry of Defence for over 20 years to provide mission essential equipment to the UK military. We are proud of the investment and partnerships we have built over the years.

Greg Hayes, Chairman and Chief Executive Officer, Raytheon Technologies

Raytheon Technologies businesses have been investing across England, Scotland, Wales, and Northern Ireland for over a century. We are especially proud that our 6,750 local employe



View the original news story