Prime Minister Sir Keir Starmer says he can strike a trade deal with Donald Trump and avoid punitive tariffs on the UK, dismissing Elon Musk's sharp criticism of his leadership as "noise" ".
In an interview with the Financial Times during a visit to Kyiv, Starmer insisted that Trump's inauguration on Monday would not add to his political woes and said their "constructive" relationship would benefit the incoming president. The outpouring continues from ally Musk, the world’s richest man. .
"What's important to me is my relationship with the United States and my relationship with President-elect Trump," Starmer said, responding to recent revelations in the Financial Times that Musk had been exploring moving him Reports of the eviction from Downing Street were dismissive.
"Ultimately my experience is that you have to focus on what's important," he said, referring to Musk's suggestion that he is the leader of an "authoritarian" government. "Ignore the noise."
Trump asked Musk to help his new administration cut back on the U.S. bureaucracy. Starmer also said he would "relentlessly cut spending" if required to comply with Labour's fiscal rules after Britain's borrowing costs rose in recent months.
Starmer values what he sees as a strong early relationship with Trump, despite the president-elect's close relationship with domestic rival Nigel Farage and the Trump campaign accusing Labor of meddling in the US election in October.
Starmer repeatedly recalled the time the president-elect hosted him for dinner at Trump Tower in New York last September.
"He's put in a huge effort," said Starmer, sitting in Kiev's traditional Kanapa restaurant wearing a down jacket with a bonfire in the corner. “He came to New York to have dinner with me, and I was very grateful for that.”
The relationship is now about to be tested, especially if Trump follows through on his threat to impose new global tariffs.
"Tariffs are not in anyone's interests," Starmer said as plates of dumplings and mushrooms began to arrive. "Our goal is to have some form of trade deal with the United States. That's where our focus is."
Since Brexit, successive British prime ministers have dreamed of some form of UK-US trade deal, but it has never materialized. Starmer rejected the idea that he had to choose between a deal with Trump or a better trade deal with the EU as a "false choice".
Starmer's visit to Kyiv on Thursday - days before Trump's inauguration - was a symbolic demonstration of Britain's continued support for Volodymyr Zelensky: the pair signed a "100-year agreement" between the two countries Partnership”.
But it was also Starmer's signal to Trump that Britain was prepared to join France and other European allies in taking action - possibly sending peacekeepers on the ground - if Ukraine agreed to end its war with Russia.
Trump told Zelenskyy and French President Emmanuel Macron last month that he wanted the Europeans to ensure peace, but Starmer said he believed the new US president would help Ukraine be in the "strongest position possible" ahead of any peace talks location".
"He is acutely aware of the contribution that the United States has made here," Starmer said. His visit to Kiev coincided with Russian drone activity over the city. "This is very important to both of us. I think he absolutely understands the critical role that the United States is going to play in this."
Zelensky on Thursday named the United States, along with Germany, Hungary and Slovakia, among the countries that oppose Ukraine joining NATO. Starmer said he would "urge" these countries to stay open.
Meanwhile, Starmer had to shelve a deal to transfer sovereignty over the Chagos Islands - home to the US/UK military base Diego Garcia - from the UK to Mauritius because some in Trump's team were concerned Tamer may cede influence to China.
"I think he's right to review it," Starmer said after the Prime Minister gave in to Trump's request to study the deal before it was signed. But he insisted the deal would secure the base's long-term legal future.
Will Trump be happy to see Starmer continue his rapprochement with Beijing, including his attempts to create more UK-China trade? "Let's see," he said. "The United States is our closest ally. It's usually best not to get ahead of ourselves."
Starmer has enough economic problems and Trump doesn't want to make them worse as Britain battles the threat of "stagflation" with inflation above the Bank of England's 2% target and growth close to zero . Business and markets are becoming increasingly bleak.
But the Prime Minister insists his long-term economic strategy is working and his critics should no longer obsess over daily economic data and rejects speculation that Rachel Reeves' future as Prime Minister is in some way Depends on whether inflation was 2.5% last month. or 2.6%.
"I've always said it takes time," said Starmer, who believed investment in the UK was strong. "I don't think it's necessarily reflective to overreact to every decimal point every day. We know this is going to be a long-term journey."
The UK 10-year government bond yield hit a post-financial crisis high of 4.93% last week, but fell to 4.65% on Friday. British government bonds rose as weaker-than-expected inflation, growth and sales data prompted investors to ramp up bets on a rate cut from the Bank of England.
Starmer claimed he would not hesitate to take action if borrowing costs exceeded expectations and caused holes in Reeves' financial plans, even if it risked a bitter clash with Labor MPs and many of his own ministers.
"We will cut spending ruthlessly if necessary," he said. "Ultimately, the fiscal rules and our commitment to them are ironclad." Starmer insisted that last year's budget increased tax revenue by 40 billion pounds and laid the foundation for economic growth.
“It’s about setting conditions, it’s about stability, it’s about certainty,” he said. "It's important not to change things haphazardly but to stick to the decisions that have been made, even though they were difficult and the right ones."
Starmer's support has plummeted since the election, with Labor now just 1 percentage point ahead of Farage's Reform Party, according to a YouGov poll. Nerves are already frayed among Labor MPs.
"I love fighting," Starmer said, thinking about the long train journey from Kiev. "I had to fight to get the leadership of the Labor Party, I had to fight to win the election. Five years ago people said, 'He can't do it' but I said, 'Look at this space'."
Additional reporting by Ian Smith in London