Welcome to the July BABN Policy and Trade Update.

BAB has launched the latest edition of its annual Trade and Investment Guide (see here), a comprehensive and practical resource to help UK companies navigate the US market. This is a co-branded publication with the BABN logo that BAB produces on behalf of the entire BABN. All BABN chapters are encouraged to share it with their members. A full list of chapters with contact details can be found at the end of the Guide.

In other news, Prime Minister Keir Starmer's announcement on 22 June that he will resign has opened the door for new leadership in the Labour Party and Downing Street. Andy Burnham is regarded as the likely winner of a contest following his rapid transition from Mayor of Greater Manchester to Member of Parliament for Makerfield. Regardless of who takes over the mantle from Starmer, the coming months are likely to bring changes to government leadership and policy priorities that may have implications for the commercial environment for business in the UK.

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

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New BAB Publication: Strengthening US-UK Energy Cooperation

10 June 2026

Overview: BAB published a new policy paper, The US-UK Energy Landscape: Tactical Opportunities for Cooperation Amidst Strategic Divergence, which argues that while the US and UK are pursuing different energy strategies based on domestic priorities, both governments share the same objective to deliver secure, affordable energy while supporting growth. Rather than creating friction, BAB suggests these distinct approaches present new opportunities for cooperation, investment, and innovation across the transatlantic corridor.

The report prioritizes three areas:

• Market Diversification – Expand US-UK cooperation on nuclear energy, sustainable aviation fuel (SAF), and fusion technologies to strengthen energy security, accelerate commercial deployment, and develop resilient transatlantic supply chains.

• Accelerating Transmission and Grid Infrastructure Deployment – Enhance collaboration on grid planning, permitting, technical expertise, and critical supply chains, including transformers and cables, to meet rising electricity demand driven by AI, advanced manufacturing, and electrification.



• Pricing and Market Design Reform – Pursue reforms that reduce exposure to energy price volatility, improve investment signals, and support more affordable and competitive energy markets, particularly in the UK.

Read more: Read our press release and the policy paper here.

New BAB Publication: UK Food & Drink Market Competitiveness

17 June 2026

Overview: BAB published a new report, Creating a Supportive and Stable Regulatory Environment for the UK Food and Drink Industry, highlighting concerns that the cumulative impact of overlapping regulatory changes is increasing costs and creating uncertainty for the food and drink industry. These include restrictions on the advertising and promotion of products high in fat, sugar and salt (HFSS), proposed changes to the Nutrient Profiling Model (NPM), and a range of environmental, packaging and labelling requirements. While individual regulatory measures are intended to deliver important public health and environmental benefits, the report argues that government must also consider their combined impact on competitiveness, investment and growth. This is particularly important against a backdrop of geopolitical uncertainty, energy market volatility and ongoing pressure on food prices.

Read more: Read our press release and the report here.

PM Starmer Resigns: Labour Leadership Contest Underway

22 June 2026

What happened: On 22 June, Keir Starmer announced he will resign as leader of the Labour Party and Prime Minister. Starmer said he will remain in post until a leadership contest is complete, with nominations opening 9 July and closing 16 July before the summer recess.

Why it matters: Starmer's resignation follows Andy Burnham's decisive by-election victory to become the new MP for Makerfield and growing pressure from within the Labour Party for a change in No.10 leadership. Burnham is regarded as the leading figure to replace Starmer.

Looking ahead: Contenders to replace Starmer have between 9 July and 16 July to garner the necessary support. If Burnham is nominated without another candidate competing against him, he would automatically become Labour leader. This raises the prospect that he could then be propelled into Downing Street as early as mid-July, less than a month after taking his seat in Parliament. Whoever wins a Labour leadership election would automatically become the Prime Minister without the need for a general election.

US Threatens Tariff on Countries for Digital Services Tax

26 June 2026

Overview: President Trump threatened a 100% tax on imports from any country that imposes a tax on digital services from United States companies, particularly singling out European countries. The President said the new tax would supersede any previously negotiated trade deals. While the measure appears to target countries planning the "imminent implementation" of a digital service tax (DST), the implications for the UK remain unclear, as it has enforced a DST since 2020.

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 18 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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