'Now Brexit is behind us' Business leaders hope Macron's state visit can strengthen ties

Keir Starmer hailed the Anglo-French relationship for being “as strong as it’s ever been” yesterday as he tried to use Emmanuel Macron’s state visit to the UK to repair Brexit damage to trade links worth more than £100bn.

- Richard Partington Senior economics correspondent

The two leaders held meetings in Downing Street with bosses from 20 leading British and French companies to underscore renewed investment opportunities in both countries.

The gathering was attended by heads of companies including the French state-owned EDF, the banks HSBC and BNP Paribas, and the engineering companies Airbus and Babcock. The government plans to announce billions of pounds in fresh foreign direct investment to add to an already multibillion-pound relationship.

The last time a French head of state came to Britain on an official visit, 17 years ago, Gordon Brown and Nicolas Sarkozy had a similar message. At a joint press conference at Arsenal’s Emirates Stadium, they said cooperation between nations would be the only way out of the 2008 financial crisis.

This time, international relations are in a far worse position. Donald Trump is upending the postwar western economic and security consensus, threatening sweeping border taxes on the allies and enemies alike, and demanding European countries play a bigger role in Nato.

Much is at stake. France is the UK’s fifth largest trading partner, with annual volumes of goods and services crossing the Channel worth about 6% of Britain’s global total. The latest figures show the overall stock of UK direct investment in France was worth £101.2bn in 2023, while £117.5bn of British investment is controlled from France.

Veolia, the French waste management business, said yesterday it would invest £70m to build its largest new plastic recycling facility in Battlefield, near Shrewsbury in Shropshire. The company plans to spend up to £1bn in Britain by 2030.

After Starmer’s “EU reset” deal with Brussels in May, business leaders in both countries hope Macron’s state visit makes progress in repairing the damage of Brexit.