Government will not get involved in ‘subsidy race’ with US over Inflation Reduction Act

During Foreign Office questions today, Labour spokesperson David Lammy asked the minister David Rutley about the UK’s response to the Inflation Reduction Act.

Mr Lammy asked: “The government’s secretary of state for energy and net-Zero described the United States’ Inflation Reduction Act as dangerous. The chancellor described it as distortive and not the British way. Does the foreign secretary agree with his colleagues in Cabinet?”.

Mr Rutley responded: “We are working incredibly closely with the United States. They’re taking their steps forward. We don’t want to get involved with the subsidy race because the UK had a head start in it over a decade on the green investment”.