UK Chancellor Backs Burnham, EU Approves US Trade deal, More

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Bloomberg News Now 9 min 7 speakers 3 chapters transcribed 2 months ago
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Ashley Roberts 0:00
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Stephen Carroll 0:32
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Caroline Hepker 0:36
And I'm Caroline Hepker.
Stephen Carroll 0:37
The UK's Chancellor, Rachel Reeves, is back to Andy Burnham to become the next Prime Minister. Speaking to a BBC reporter this morning, Rachel Reeves says Andy Burnham is the only one who decides who the next Chancellor is.
Caroline Hepker 0:48
I'm not going to pre-empt his decisions. Those are his decisions to take as Prime Minister.
Stephen Carroll 0:53
You'll be aware the BBC is reporting that Andy Burnham is potentially going to offer you a more junior role in the Cabinet. Is that something you'd accept?
Caroline Hepker 1:00
I'm backing Andy. I think he'll be a great Prime Minister. But those are his decisions, not mine to make.
Stephen Carroll 1:07
The UK's Chancellor, Rachel Reeves, speaking there to the BBC. She'll also speak later at the British Chambers of Commerce annual conference.
Caroline Hepker 1:15
Now, while in office, Rachel Reeves has raised taxes by more than £60 billion in her two budgets, and the British Chambers of Commerce, which is one of Britain's largest business lobby groups, is this morning warning Andy Burnham against further tax hikes. Speaking to Bloomberg Radio, the BCC's Director General, Siobhan Havilland, said companies are at breaking point.
Siobhan Haviland 1:38
increasing taxes for business will be a road to ruin there is absolutely no way that increasing tax and business is going to get us anywhere near economic growth and we are just going to spiral down more lack of confidence from business more holding on to their money lack of investment it is a vicious circle so we absolutely have to see no new tax for business
Caroline Hepker 2:01
Haviland was speaking there ahead of the BCC's annual conference. Her comments come as Bloomberg learned that influential figures in Andy Burnham's team, including Andy Haldane, have urged the likely next Prime Minister to break up the Treasury to focus the government's agenda on growth.
Stephen Carroll 2:19
Well, as Andy Burnham rushes to assemble his team ahead of his expected elevation to Prime Minister in the coming weeks, unions are making the case for a more left-wing policy approach. Trade Unions Congress General Secretary Paul Novak has told Bloomberg Radio the government should impose a surcharge on bank profits. Last month, JP Morgan's CEO Jamie Dimon warned that the bank could scrap plans to invest billions of pounds in New London headquarters at Canary Wharf if such a levy were introduced. But Paul Novak says that's just a bluff.
Paul Novak 2:48
those comments with a pinch of salt. I mean, the Tories reduced the bank surcharge by 3% three years ago it is now. I think at the very least, considering those windfall profits that the banks are making, the government should reverse that. But I think they can go further. I mean, the Tories themselves put a 35% levy on the windfall profits of the energy companies.

What recent support did the UK's Chancellor express for Andy Burnham?

Paul Novak 3:10
And we're in a similar situation now with banks. And I would say to JP Morgan and everybody else, reflect on the fact that last year was a record year for bonuses in the City of London. £24 billion handed out.
Stephen Carroll 3:22
TUC's Paul Novak speaking there. He represents the umbrella body for dozens of individual trade unions, many of which fund and are directly affiliated with the Labour Party.
Caroline Hepker 3:32
Now to the European Union, which has given the EU-US trade deal final approval ahead of President Trump's deadline. It is the last step in a fitful year-long ratification process. The European Parliament ratified the agreement earlier this month, just days after President Trump threatened further tariffs, the US president going after France over its digital rules. Now, under the deal, the EU has agreed to erase levies on US industrial goods and some agricultural products in exchange for a 15% tariff ceiling on its products.

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