Investor Hails Peter Kyle’s ‘Picking Winners’ Strategy
News Context
At a glance
- Saturday 24 January 2026 1:26 pm | Updated: saturday 24 January 2026 1:27 pm
- Investors are hitting out at Peter Kyle, the shadow cabinet minister, for what they claim is a pattern of "picking winners" in the green energy sector, raising concerns...
- Kyle, the shadow secretary of state for science, innovation and technology, has repeatedly championed specific companies in parliamentary questions and speeches, leading too accusations that he is improperly...
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Saturday 24 January 2026 1:26 pm
| Updated:
saturday 24 January 2026 1:27 pm
Business secretary Peter Kyle has come under fire over his admission the government would be “picking winners” across the UK economy.
The former Gail’s and Pizza Express investor Luke Johnson hit out at Kyle’s “arrogance and equal measure” for comments on the Labour government’s approach to investment.
On friday, Kyle spoke out about the government’s hopes of “betting big” through the British Business Bank (BBB) and other state-backed investments to support UK firms.
He wrote in a post on X: “I am betting big.And I am picking winners. It’s more activist.
“And ther will be things that don’t work out, sure. But to have a healthy economy, failure leads to success.”
Peter Kyle and Potential Delays to UK-US Trade Talks
Table of Contents
Shadow business Secretary Peter Kyle warned on January 23, 2024, that escalating tariff tensions between the UK and the United States could significantly delay the resumption of formal trade negotiations. kyle’s comments reflect growing concerns over the US response to the UK’s recently implemented carbon border adjustment mechanism (CBAM), which the US views as potentially discriminatory.
The UK’s Carbon Border Adjustment mechanism (CBAM)
The UK’s CBAM, mirroring a similar EU policy, imposes a carbon price on imports of certain carbon-intensive goods – aluminum, cement, ceramics, fertilizers, glass, hydrogen, and iron and steel – from countries with less stringent climate policies. The UK government details the CBAM’s objectives and implementation on its official website.The mechanism aims to prevent “carbon leakage,” where domestic industries face unfair competition from imports produced in countries with lower environmental standards.
US Concerns and Potential retaliation
The United States Trade Representative (USTR) has expressed strong reservations about the UK’s CBAM, arguing it could violate World Trade Organization (WTO) rules and disproportionately impact American businesses. On January 19, 2024, USTR Katherine Tai issued a statement outlining these concerns and signaling potential retaliatory measures, including tariffs on UK exports. Specifically, the USTR is worried the CBAM could discriminate against US producers, especially in the steel and aluminum sectors.
Peter Kyle’s Warning and Labour Party Position
Peter Kyle, speaking to City A.M. on January 23, 2024, stated that the imposition of US tariffs in response to the CBAM would create a “very tough” habitat for restarting trade talks. As reported by City A.M., Kyle emphasized the importance of a stable trading relationship and warned that escalating tensions could derail progress. The Labour Party, while committed to addressing climate change, also recognizes the need to maintain strong economic ties with the US.
Status of UK-US Trade Negotiations
Formal trade negotiations between the UK and the US have been stalled since 2022, with limited progress made on key issues such as agricultural access and financial services. The UK government had hoped to resume talks in 2024, but the CBAM dispute adds a significant new obstacle. According to a report by the House of Commons International Trade Committee published on March 22, 2023, several factors contributed to the stalled negotiations, including differing priorities and political considerations on both sides.
Potential Economic Impact
The imposition of US tariffs on UK goods could have a substantial economic impact, particularly on sectors such as steel, aluminum, and automotive. In 2022, the UK exported £14.5 billion worth of goods to the US, representing approximately 18% of total UK exports. The Office for National Statistics (ONS) provides detailed trade statistics. Any disruption to this trade flow could negatively affect UK economic growth and employment.
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