Prime Minister Andy Burnham has warned that planned European Union industrial regulations intended to shield regional manufacturers from Chinese competition could cause significant damage to the United Kingdom. Speaking while en route to a UN summit in New York, Burnham expressed concern over the potential impact on British supply chains and intends to raise the matter directly with European Commission President Ursula von der Leyen.
The Industrial Accelerator Act
The proposed legislative framework, formally titled the Industrial Accelerator Act, is known as the “Made In Europe” scheme. It aims to protect EU-based firms by granting them preferential access to public contracts and subsidies. While the policy remains under development, the EU’s automotive sector has requested that the UK be included to prevent supply chain disruption.
Diplomatic Tensions
- Tensions over the scheme have reportedly further delayed the planned EU-UK summit, which had previously been postponed following Sir Keir Starmer’s resignation as prime minister in July.
- Burnham stated his immediate priority is rebuilding the relationship with the EU to reach an agreement that boosts the British economy.
- He noted significant support among member states for the UK’s position, asserting that Europe’s argument is not with Britain.
- Burnham stated: “We are making the argument ‘we are not your enemies here… we are not the problem’. Made in Europe is dealing with a different problem. We are making the argument that ‘let’s avoid collateral damage’.”
- During the flight, Burnham declined to rule out committing to rejoining the EU in Labour’s next manifesto, saying it was an issue “for another day”.
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