The UK must adjust to the new reality of its relationship with the US - says Lords Committee

Today, the House of Lords International Relations and Defence Committee has published its report, Adjusting to new realities: rebalancing the UK-US partnership. The report concludes that the UK must reframe its relationship with the US and dismiss previous sentimentality about a “special relationship”. While the US remains a close ally, its strategic and political priorities mean that future relations with the UK will be far more transactional and interest based. The UK must therefore rebalance its approach towards the US—collaborate where it can but also hedge where it must in recognition of a partnership that remains vital but less predictable.  This will include working with partners and strengthening the UK's capacity to act without US support where feasible. Ultimately, a UK that is stronger, more strategically autonomous and resilient will be the surest foundation for a more balanced transatlantic partnership—one that consistently advances and protects the UK's national interest.

While the second Trump Administration has shone a light on the challenges in the relationship, the report notes five core trends in US politics that will impact the relationship in the future, irrespective of who sits in the Oval Office. These include China's rise as a geopolitical competitor; related calls for Europe take more responsibility for its defence and security; a resentment of globalisation and its impact on ordinary Americans; a recourse to economic nationalism and willingness to deploy protectionist tools such as tariffs; and a polarised domestic climate that will lead to pendulum swings between administrations with very different political dispositions, thus raising questions over the consistency of US policy. As a result, the UK must be hard-headed and realistic about the future trajectory of the relationship.

Specific findings and recommendations from the report include:

• Defence: although the UK has benefited from closely collaborating with the US on defence, this has fostered a dependency culture leading to a decline in UK capabilities and loss of UK credibility in Washington. The Government should provide a clear and costed pathway to achieving the commitment to increase defence spending to 5% of GDP. It should also publish the overdue Defence Investment Plan and accelerate implementation of the Strategic Defence Review. 

• Foreign policy: Confidence in sustained US international engagement has dissipated as the gulf between the UK and US on the relevance of the rules-based system and international law has widened under the current administration. A priority for the UK Government should be to engage with like-minded partners, maintaining openness to US re-engagement, but not relying on it. The development of closer relations with the EU and the pursuit of novel partnerships with other like-minded partners (provided these partnerships do not undermine established multilateral fora) will be critical. 

• Economic ties: These ties are being severely tested with the re-emergence of economic nationalism in the US manifesting in the form of tariffs, export controls and supply chain re-shoring. These policies depart from free trade principles and market-driven solutions. The UK must recalibrate its approach and develop a more balanced trade strategy with European partners and beyond to provide greater resilience against continued deployment of protectionist trade tools and US political volatility. There are clear opportunities for the UK to continue to collaborate with the US. Advanced technologies—particularly AI and other frontier technologies (civilian and defence)—are a significant opportunity for innovation-led economic growth, providing a multiplier effect for the UK. 

The report also contains recommendations for the Government relating to the ‘Europeanisation' of NATO; the politicisation of US intelligence; international development cooperation in the light of aid funding cuts; economic collaboration and priorities for the Economic Prosperity Deal; and academic, research and cultural collaboration. 

Commenting on the report, Lord Robertson of Port Ellen, who chairs the International Relations and Defence Committee said:

“We set out to examine the future of the UK and the US relationship, focusing on long-term trends that will shape our partnership over the next decade. One of our central conclusions is that the UK must move beyond the sentimental notion of a “special relationship”. That does not mean turning away from the United States. Ours is a long-standing partnership rooted in diplomatic, economic, military and intelligence cooperation, and this will endure.

“What must change is how the UK approaches the relationship. Overall, the United States is becoming more transactional and interest-based, with likely shifts between administrations holding markedly different views raising questions about the consistency of US commitments. 

“What this means for the UK, is that it must reduce its over-reliance on the US and take the lead in cultivating other partnerships even while continuing to collaborate with the US where feasible and when interests align. Greater UK autonomy and resilience are essential if we are to protect our national interest in an increasingly volatile global environment where US support may not always be guaranteed.”