Welcome to the December BABN Policy and Trade Update.

November brought a flurry of activity on both sides of the Atlantic. In the UK, the government unveiled its much‑anticipated Autumn Budget, setting the tone for the year ahead. Meanwhile in Washington, the US Supreme Court heard oral arguments in the IEEPA case on presidential tariff powers. We also examined the implications of the proposed de minimis removal and contributed to the US‑UK Transatlantic Taskforce for Markets of the Future.

As an eventful year for US‑UK policy and trade draws to a close, we are already looking ahead to 2026, the 250th anniversary of US Independence. With a Financial Services Taskforce report scheduled for March, discussions planned around AUKUS, defence spending, energy security and costs, and continued progress on the Economic and Technology Prosperity Deal, there is much to look forward to. From all of us at BAB, we wish you a happy holidays.

See below for a breakdown of policy and trade headlines and our published works.

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UK Budget

26 November 2025

Chancellor of the Exchequer, the Rt Hon. Rachel Reeves, announced the governments Autumn budget on 26 November.

What we said: BAB welcomed the government’s focus on growth, entrepreneurship and investment, including targeted support for innovation, AI growth zones, nuclear energy, and low-carbon initiatives. These measures were recognised as bolstering future-facing industries and reinforcing commitments under the UK-US Tech Prosperity Deal.

On the other hand: BAB voiced concerns that the budget was a little underwhelming and fell short on fundamental business issues.

1. Business rates relief has been scaled back, increasing cost burdens.
2. There is a notable lack of broader energy support, leaving companies exposed to market volatility.
3. Persistent concerns over the Employment Rights Bill (now Act).

BAB explained that alongside the budget, the UK must address basic competitiveness challenges: tax policy; energy affordability; and regulatory clarity. 

Read more: Our full statement can be found on our website.



Transatlantic Taskforce for Markets of the Future (TTMF)

September - December 2025

On 22^nd September 2025, UK Chancellor Rachel Reeves and U.S. Treasury Secretary Scott Bessent announced the establishment of the TTMF at Downing Street during a joint roundtable. Chaired jointly by officials from both treasuries, the Taskforce has a mandate to research two core areas:

1. Capital Markets Integration

• Short and medium-term collaboration options while regulatory regimes are still evolving.  
• Long-term vision for wholesale digital market innovation.  

2. Digital Assets & Innovation 

• Streamlining cross-border capital raising to reduce burden on firms. 
• Enhancing market competitiveness and investor access.  

A consolidated report of recommendations is expected within 180 days, via the UK-US Financial Regulatory Working Group (FRWG).

BAB held a discussion with US and UK government last week, with a written submission expected before the end of the year of practical recommendations. This will be published in early January 2026.



US-UK IP Working Group

17 November 2025

What is the US-UK IPWG?: The US-UK  IP Working Group is a bi‑annual, industry-led forum convened by BAB and the U.S. Chamber of Commerce, which was launched in October 2023. The purpose of the Working Group is to deepen US-UK cooperation on intellectual property policy by convening industry and government officials to discuss IP matters of importance.  

What happened: BritishAmerican Business (BAB) and the U.S. Chamber of Commerce convened the 4th meeting of the US-UK IP Working Group. Participants included representatives from leading transatlantic businesses, as well as officials from both the UK and US governments. The meeting featured keynote remarks from Tanuja Garde, Director of the Intellectual Property, Government Procurement and Competition Division at the World Trade Organization (WTO). The meeting was moderated by Kelly Anderson, Vice President of International Policy at the U.S. Chamber, and Daniel Hurley, Policy Manager at BAB. 

The discussion covered the following topics:

• WTO Areas of Focus
• Institutional Reform
• Post-Pandemic Debates
• IP-related Discussions
• MC14 Agenda Setting
• US-UK Collaboration at WIPO & WTO
• Standard Essential Patents
• Government-to-Government Engagement Opportunities

Read the summary note here.



US-UK Pharmaceutical Deal

1 December 2025

What happened: Announced as part of the broader US-UK Economic Prosperity Deal, both countries agreed on a landmark pharmaceutical pricing framework. 

Key elements:

1. Tariff concessions: The US grants no tariffs on UK pharmaceutical exports, ingredients, and medtech for at least 3 years; UK exports are also shielded from future Section 301 tariffs.

• UK NHS investment uplift: The UK commits to increasing net NHS spend on innovative medicines by around 25%, making this one of the most significant spending changes in the 2000s.
• Rebate scheme reform: The UK’s VPAG rebate cap will be reduced to 15% or lower from 2026, helping preserve revenue from new drugs. BAB welcomed this news, which was a key advocacy issue for a number of years.
• NICE valuation realignment: Quality-adjusted life-year thresholds will be raised from £20-30k to £35-35k, ensuring more innovating drugs.

What do all these changes mean?: The deal aims to strengthen the UK’s attractiveness for pharma R&D (a sticking point in our 2025 Transatlantic Confidence Index), whilst providing UK customers with more innovative medicines. It supports the goals of both governments agendas, reinforcing the UK as a global life sciences leader (a key sector in its Industrial Strategy), and secures US pharma supply chains. The agreement hopes to reduce uncertainty around pharma tariffs for the corridor, ensuring a strong trading environment for the remainder of both governments terms.

BAB welcomed the announcement with cautious positivity, reflecting the complexity of the issues involved and the seriousness of the consequences if progress had not been made.

Learn more: Read our CEO’s statement here. 

Technology Prosperity Deal Updates

15 December 2025

Overview: During the US President's State visit in September, the US and UK signed the Technology Prosperity Deal (TPD), a landmark agreement to deepen cooperation across AI, civil nuclear energy, and quantum computing.

HOWEVER: It was confirmed earlier this week that the US suspended the deal after pushing for UK concessions in areas outside of the trade and tech partnership, such as rules and regulations on industrial, food, and agricultural products. There is hope to get negotiations back on track in the new year.

What is in the TPD:

• AI: The TPD strengthens collaboration between the US Center for AI Standards and Innovation (CAISI) and the UK AI Safety Institute (AISI). It establishes a flagship AI for Science programme focused on biotechnology and precision medicine, with joint work on data sets, disease research and personalised medicine.
• Civil nuclear energy: The deal aligns the US Nuclear Regulatory Commission and the UK Office for Nuclear Regulation on the streamlining of licensing processes. It targets reactor design reviews within two years and site licensing within one year. The UK also committed to achieving full independence from Russian nuclear fuel by 2028, ensuring a secure transatlantic supply chain. The agreement includes enhanced cooperation on fusion energy R&D, supported by AI.
• Quantum computing: A joint benchmarking taskforce will be established to develop interoperable standards across quantum hardware, software, and algorithms. The partnership aims to accelerate breakthroughs in defence, finance, and energy, as well as build a secure quantum supply chain.

Our recent analysis : BAB provided an overview of the key commitments set out in the agreement, outlined any existing cooperation in its focus areas, and analysed the strength of each commitment, with a specific view to the impact on business. The analysis also offers some recommendations for governments on how to bring the deal to life.

Where to find it: Read our analysis here.

Thank you for reading this month's Policy and Trade Update. If you have any feedback or comments please contact us.

BAB participates in and offers policy and trade support to the BritishAmerican Business Network, a group of over 20 independent trade organisations across North America and the U.K. If you would like to learn more about the network and its activities, please visit our website.



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