Summarize this content to 2000 words in 6 paragraphs in Arabic Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.Sir Keir Starmer should not cave in to Donald Trump’s “bullying” by lowering the UK’s Digital Services Tax, the leader of the Liberal Democrats has warned, arguing the US president is “an unreliable ally”.Sir Ed Davey said the prime minister was making a mistake with his friendly approach to Trump in the hope of sparing Britain from punitive trade measures, arguing that “Trump will put tariffs on us regardless”. “He’s not sentimental . . . he can change his mind at a moment’s notice,” Davey said in an interview with the Financial Times. “He’s an unreliable ally.”The Lib Dem leader said any move to soften the UK’s digital services tax on companies such as Alphabet and Facebook would be “wrong”. The FT reported this week the UK and US were discussing the levy as part of trade talks.“To cut it would be giving in to Trump bullying,” he said. Davey instead called for Labour to increase the digital services tax to pay for Starmer’s pledge to increase defence spending.The Lib Dems have carved out a niche as the UK party that is openly and aggressively criticising the new US administration and banging the drum for old school globalisation. “If you’re interested in the economy of the UK and the security of the UK, we’re the only party addressing those real issues,” Davey said.Davey, who leads the UK’s third-largest party in Westminster with 72 MPs, said Britain should pursue a new strategic grouping with Australia, New Zealand and Canada — dubbed “CANZUK”.The grouping would focus on enhanced intelligence sharing, increased trade and greater co-operation around foreign and defence policy, Davey said.He conceded that such an allegiance “might annoy [Trump] but . . . he respects people who have got some strength”.Speaking ahead of the Lib Dems’ spring conference in Harrogate this weekend, Davey criticised chancellor Rachel Reeves’ “disappointing” fiscal decisions and touted his ambition to beat Reform UK in May’s local elections.The Lib Dem leader has long called for a rapprochement with Europe, including calling on the UK to rejoin the customs union by the end of the decade, arguing that the economic bounty from any such deal with Europe would “more than make up” for the hit from future tariffs imposed by Trump. He added that it was a “huge missed opportunity” that the UK, along with the US and Turkey, would be excluded from a new €150bn EU defence fund unless it signed a defence and security pact with Brussels. Though the UK has lobbied hard to be included in the fund, talks have been held up by demands for a larger EU-UK agreement that would also include controversial issues such as fishing rights and migration.“If we’re getting cut out because we haven’t been fast enough to develop the defence and security pact, that is just such a mistake,” Davey said.Davey also argued that Starmer should be much more aggressive at using Trump’s proposed state visit to the UK as leverage to win concessions on America’s treatment of Ukraine and Canada.“I’m not one of those who wants to sort of randomly protest. What I do want to do is make sure we stand up for our values, stand up for our allies and stand up for our national interest,” he said.He said it was a mis-step for Starmer not to threaten retaliatory tariffs on the US after Trump imposed 25 per cent tariffs on British steel and aluminium imports, and reiterated his call for a specific tariff on Elon Musk’s electric vehicle company Tesla. Musk called Davey a “snivelling cretin” earlier this year.Starmer has made successive mistakes internationally and at home, Davey said, including cutting winter fuel payments, slashing the budget for overseas aid and the “rushed” decision to cut welfare payments announced this week. “Labour have . . . been so disappointing in government, they’re really struggling.”“If Starmer chooses to ape [Reform UK leader Nigel] Farage, he will lose the next election,” Davey warned. “Farage is a divider of people and we need a politic that builds consensus, to bring people together.”Davey said he believed the Lib Dems could win the new mayoralty of Hull and East Yorkshire at local elections in May, along with scores of seats in new strongholds such as Devon, Oxfordshire, Cambridgeshire and Wiltshire. But the party will have stiff competition in Hull from Reform, which has been eyeing up the seat for months and is the bookies’ favourite to win. “If you’re in front of people, knocking on doors, the support for Farage just dissipates,” Davey said. Davey argued that any future electoral pact between the Tories and Reform would be a boon for the Lib Dems. “You’d see a lot of people who previously voted Conservative — even at the last election — coming to us,” he said, referring to moderate Tory voters who would be unwilling to countenance voting for a party with Farage in a leadership role. “If the right think they can act like generals moving voters here and there, they’re going to get a nasty surprise.” Whatever happens, Davey said he would be leading the Lib Dems into the next general election, expected in 2029. “I’m not standing down, that’s for sure — this is a very exciting moment for the Liberal Democrats,” he said. “I wouldn’t want to be anywhere else.”
