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Sir Keir Starmer is under pressure to speed up his appointment of a new UK ambassador to Washington, after the US suspended implementation of a technology deal struck by Donald Trump during his state visit to Britain.
Varun Chandra, the prime minister’s business adviser and an architect of recent UK-White House trade accords, is seen by some diplomats as the frontrunner for the post and best placed to put the talks back on track.
One veteran British diplomat said the absence of a permanent UK envoy to Washington since September — when Lord Peter Mandelson was fired over his relationship with convicted sex offender Jeffrey Epstein — had allowed negotiations to falter.
“The US trade hawks have been allowed to come at us again over further trade concessions without any replacement ambassador in situ to repel this and maintain pressure in favour of the tech deal’s implementation,” said the former diplomat.
The US-UK “technology prosperity deal”, announced in September, aims to spur co-operation between the two countries in areas including artificial intelligence, quantum computing and nuclear energy.
But Washington suspended implementation of the pact last week, amid growing frustration over the progress of trade talks with London.
Chandra, former managing partner of London-based consultancy Hakluyt, was instrumental in negotiating the tech deal alongside Mandelson, and has close links to the White House and US trade teams.
He was interviewed by Starmer for the Washington job last week, along with Nigel Casey, Britain’s ambassador to Moscow, and Christian Turner, who had already been lined up as the next UK envoy to the UN in New York.
One government official said “due diligence” was being carried out on Starmer’s preferred candidate and the process was taking “some time” with a fierce argument raging about who should get the job.
The Foreign, Commonwealth and Development Office has been pushing for Casey, a career diplomat, to be given the role, rather than Chandra, who would be a political appointment.
Another well-connected government official said that Casey, Britain’s ambassador to Russia since November 2023, was needed in Moscow at a highly sensitive time with peace talks over the Ukraine war in the balance.
The person said: “People are focused on the Washington job, but Moscow is also very important and Nigel is seen to be doing a very good job in Russia. It’s not clear there is anyone obvious who would do such a good job.”
Chandra is widely seen as the best placed candidate to unblock talks on the tech deal, which have become enmeshed in US demands for greater access to British markets for agricultural products. UK food standards are seen by Washington as unfair non-tariff barriers.
Allies of Starmer admit Trump’s team is “playing hardball” and the stakes are high, but insist that the interlocking trade issues can be resolved.
Downing Street said it was in “active conversations with US counterparts” and that the UK was “firmly committed to ensuring the tech prosperity deal delivers opportunities for hard-working people in both countries”.
“Negotiations of this kind are never straightforward, but we’re confident of securing a deal that delivers growth, security, and opportunity up and down the country,” it added.
