In an op-ed originally published by The Times, Prime Minister Keir Starmer has robustly defended his administration's active state involvement in the economy, arguing that an "activist and interventionist" government is essential for driving national growth amid global volatility.
Detailing a string of recent international trade achievements, Starmer pointed to a newly finalized agreement with the Gulf Cooperation Council (GCC)—a $2 trillion economic bloc—making the UK the first G7 nation to secure such a deal. He contrasted his administration's aggressive trade strategy with past leadership, asserting that "previous governments weakened our global connections" and "damaged our ability to trade." According to Starmer, this interventionist framework has yielded tangible domestic benefits, claiming the government has secured £360 billion in foreign investment and created approximately 170,000 jobs since the general election.
The Prime Minister highlighted that the GCC trade deal alone is projected to boost the UK economy by £3.7 billion annually, including a £1.9 billion lift to real wages. This agreement follows other recent deals secured with India, the US, the EU, and South Korea. Starmer also noted several state-backed domestic successes, including an £800 million AI investment via the Sovereign AI Fund, a new Universal Studios theme park in Bedford, and a major naval shipbuilding contract with Norway. Furthermore, he linked this macroeconomic growth to immediate household relief, noting the extension of the fuel duty cut and subsidized summer bus fares for children.
Responding to critics of state interference, Starmer emphasized that his strategy relies on collaboration rather than regulation, writing: "Crucially, I am clear we will do this not by working against good businesses, but by helping them to thrive." Reaffirming his commitment to a ten-year modern industrial strategy, Starmer concluded that the UK's recent position as the fastest-growing economy in the G7 during the first quarter proves his economic blueprint is "starting to bear fruit and deliver for the British people."
