Healey to ask EU finance ministers to let UK into industry scheme

The chancellor is to warn the European Union (EU) not to lock the UK out of its scheme to protect industries from unfair Chinese competition.

John Healey will push for closer UK-EU partnerships on tech, defence, and manufacturing at a meeting of EU finance ministers in Dublin on Friday.

But he will call on the EU to design its "Made in Europe" programme in a way that deepens ties with the UK "rather than erecting new barriers", Treasury sources told the BBC.

Officials said Healey will tell European finance ministers it is important to "learn lessons" after talks collapsed last year for Britain to join an EU defence loans scheme.

That dispute centred on how much money the UK would pay to join.

The "Made in Europe" policy, officially called the Industrial Accelerator Act (IAA), is currently being considered by the bloc and aims to protect EU manufacturing with restrictions on goods from outside countries.

There is concern in government the scheme could lock British firms out of European supply chains.

Treasury officials said Healey wanted to reduce the economic impact of Brexit and build closer ties with the EU, but not at any cost to the UK.

Healey said: "The next chapter of Britain's growth story will be written in more places.

"To me, closer ties with the EU means British businesses – wherever they are based across the UK – get better access to both the supply chains and the customers they need to grow."

Healey will use the meeting in Dublin to focus on tech firms, defence companies, and manufacturing.

"The chancellor wants to make sure nothing holds them back," a Treasury source said.

It comes after a reset summit with the EU was delayed after Sir Keir Starmer's resignation as prime minister.

Treasury sources now expect that to take place in November.

Healey's meeting in Dublin comes after it emerged earlier this week that he is in discussions about joining a global investment bank aimed at raising more money for defence spending.

He is considering a bid to join the Defence, Security and Resilience Bank (DSRB), not long after his predecessor Rachel Reeves rejected the idea.

Canada has been leading efforts to establish the bank, which supporters say would enable governments to borrow at lower costs to increase military spending.

Paying for the UK's growing defence commitments is one of Healey's biggest headaches as he prepares for the Budget in October and next year's spending review.

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