Welcome to the October BABN Policy and Trade Update.

In the context of this important election year, BAB released the 4th Transatlantic Confidence Index. The results offer a clear direction of what transatlantic businesses will want to see happen in US/UK policymaking. In addition, BAB made submissions to government on the UK proposed Carbon Adjustment Mechanism Scheme; SAF Certainty Revenue Mechanism; the UK Digital Markets Competition & Consumers Act; and sent a letter to the IRS on Excise Tax. BAB also held its Annual Gala luncheon in London at the end of September in honour of the US Ambassador to the UK.

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

Follow BAB on X and LinkedIn

UK General Election Results

4 July 2024

What happened: On July 4^th, the UK population flocked to the polls in the general election. The government saw a shift of power from blue to red as the Conservatives lost 251 seats and the Labour party won 211. This brought the largest 3 parties final result to:

Labour: 412; Conservatives: 121; Liberal Democrats: 72. 

More information: Alongside Labour, the Liberal Democrats – the centre party – achieved a successful outcome, gaining a large proportion of seats in the South of England. Other notable changes saw the Green Party winning 4 seats, and the Reform Party winning 5 seats. In Northern Ireland, the DUP lost 3 seats, and in Scotland the SNP lost 39 seats. The Labour government has not proposed any significant changes to US-UK bilateral trade so far, re-committing to the special relationship, as seen by the Prime Minister’s, and other senior Cabinet staff trips to the US in the first weeks of premiership. There is currently no schedule for the release of DBT’s new trade strategy, which will build on the UK’s new industrial strategy approach (reflecting a BAB ask).

UK Party Conferences

6 September - 1 October 2024

What happened: Between 6 September and 1 October, party conferences for the main four political parties took place in the UK. Here are the dates:

• Green Party Conference: 6-8 September 2024
• Liberal Democrat Autumn Conference: 14-17 September 2024
• Labour Party Annual Conference: 22-25 September 2024
• Conservative Autumn Conference: 29 September-2 October 2024

More information: The Labour Conference in particular was watched closely in anticipation of more policy clarity ahead of the Autumn Budget. The Prime Minister invited business to shape policy directly; though it is yet to be seen how much of a role business will play for the new government. More details on the specific meetings and events that were held during the conferences can be found here. 

UK International Investment Summit

14 October 2024

What it is: The UK government has announced the date of the International Investment Summit, which will be held on 14th October, with the aim to attract global investment and showcase the UK as a stable place to do business.

More information: More details on the Summit can be found here.

Transatlantic Confidence Index 2024

24 July 2024

Headline: The fourth edition of the Transatlantic Confidence Index by BAB and Bain & Company highlights a stable confidence level in the US-UK economic corridor for 2024.

At a glance: US companies’ confidence in the US business environment has stabilised after years of decline, whilst UK companies’ confidence in the US remains high.

Tax competitiveness emerged as a top priority, ranking as a top three concern for US and UK companies, driven by continued concern over the high tax burden in the UK and upcoming US tax reviews in 2025.

Companies on both sides of the Atlantic emphasise the need for stable policies and support for deeper transatlantic economic collaboration remains high, with businesses ranking a trade agreement higher than sectoral deals.

Read more: Read the full breakdown here or contact Sophie Rahemanji (London) (srahemanji@babinc.org) for more information.

BAB Submission to CBAM Consultation

14 June 2024

What it is: The UK government will introduce a Carbon Borden Adjustment Mechanism (CBAM) from January 2027 on imports of certain carbon intensive imported goods from 8 sectors. They recently ran a consultation asking for views surrounding the design and administration of the mechanism.

Where to read: BAB submitted a response as part of its sustainability sub-committee work, in collaboration with AmCham EU who have experienced the introduction of a similar mechanism in the EU. You can read the full submission here.

Want to learn more: Please contact Sophie Rahemanji (London) (srahemanji@babinc.org) for feedback or questions on the paper.

BAB Submission to SAF CRM Consultation

20 June 2024

What it is: The UK government recently released a consultation seeking views on the options for a revenue certainty mechanism (RCM) to support the sustainable aviation fuels (SAF) industry in the UK. It proposed 4 potential RCMs, and asked for reasons why the UK should introduce one, which would be most appropriate and how it may be implemented.

Where to read: BAB submitted a response as part of its sustainability sub-committee work. You can read the full submission here.

Want to learn more: Please contact Sophie Rahemanji (London) (srahemanji@babinc.org) for feedback or questions on the paper.

BAB Submission Response to Consultation on CMA draft guidance

30 July 2024

What it is: BAB, in partnership with the U.S Chamber of Commerce’s US-UK Business Council (UKBC), submitted a joint response to the public consultation on the UK Consumer Markets Authority’s (CMA) draft guidance last week. The guidance sets out how the new Digital Markets Competition & Consumers Bill will be operationalised in the UK. Thank you to those who contributed to the submission! The consensus from industry is that the guidance (in its current form) does not offer enough detail around decision making, engagement and information management.

Where to read: You can read the full submission here.

Want to learn more: Please contact Nikki Hewett (US) (nhewett@babinc.org) for feedback or questions on the paper.

BAB Letter to the US Internal Revenue Service (IRS) on Stock Buyback Excise Tax

13 August 2024

What it is: BAB submitted a letter to the US Internal Revenue Service (IRS) seeking clarification on regulations covering the US subsidiaries of foreign parent companies as it applies to the Stock Buyback Excise Tax provision contained in the Inflation Reduction Act (IRA).

Where to read: You can read the full letter here.

Want to learn more: Please contact Nikki Hewett (US) (nhewett@babinc.org) for feedback or questions on the letter.

New Business and Trade Secretary

9 July 2024

Overview: The new UK Business and Trade Secretary is calling on business owners to provide feedback on the following questions:

• How we should use our Industrial Strategy to kickstart Britain's economy;
• How you have supported your teams while also growing your business so we can take forward the best examples to inform our work;
• What's stopping you growing if you're a small business owner; and
• How we should use our trade strategy to drive up exports and sell more British-designed, British-made products and services to markets around the world.

Please direct interested parties to put their answers down in an email to: telljonathan@BusinessandTrade.gov.uk. The inbox will be open until 17 October.

Farnborough Airshow

22 - 26 July 2024

What it is: July saw the hosting of Farnborough Air Show which brought together leading innovators from the aerospace, aviation, and defense industries and beyond.

BAB was pleased to see a variety of states both traditionally within and new to the sector. The event was a productive week to show innovation in the field from US and UK companies, and how states are working with companies to attract FDI from the field.

For more information: BAB sent a delegation to the event; reach out to Francesca Lentini (flentini@babinc.org) if you would like further information about the exhibition, or if BAB can help with relevant delegation trips in the aerospace and aviation sector.