Healey urges EU not to lock UK out of 'Made in Europe' plan

Industrial Accelerator Act aims to shield EU industries from unfair Chinese competition

UK Chancellor John Healey will meet European Union finance ministers in Dublin on Friday and warn them not to lock Britain out of the bloc’s “Made in Europe” scheme, a policy designed to protect EU industries from unfair Chinese competition. British officials are concerned the scheme could exclude UK firms from European supply chains, and Healey will call on the EU to design the new policy so it deepens UK ties “rather than erecting new barriers,” according to Treasury sources who spoke to the BBC.

The “Made in Europe” policy, formally called the Industrial Accelerator Act, is being considered by the EU and would shield EU manufacturing by restricting goods from outside the bloc. There is concern in government that the scheme could lock British firms out of European supply chains, the BBC reported.

Healey intends to use the Dublin meeting to focus on tech firms, defence companies and manufacturing. Treasury officials told the BBC the chancellor will also tell European finance ministers it is important to “learn lessons” after UK talks collapsed last year for Britain to join an EU defence loans scheme, a dispute that centred on how much money the UK would pay.

Healey said in a statement: “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.” A Treasury source added: “The chancellor wants to make sure nothing holds them back.”

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,” the BBC reported.

The Dublin meeting comes after a UK-EU “reset summit” was delayed following Sir Keir Starmer’s resignation as prime minister. Treasury sources now expect that summit to take place in November.

Healey’s trip also follows news earlier this week that he is in discussions about joining the Defence, Security and Resilience Bank, a Canada-led initiative that supporters say would enable governments to borrow at lower costs to increase military spending. His predecessor as chancellor, Rachel Reeves, previously rejected the idea.

Paying for the UK’s growing defence commitments is one of Healey’s biggest challenges as he prepares for the October Budget and next year’s spending review, the BBC reported.