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British finance minister Jeremy Hunt said the US Inflation Reduction Act that provides subsidies to green industries was a “very real competitive threat.” This comes amidst concerns in Europe that the subsidies would put companies based in the EU at a disadvantage.
Hunt spoke at a green energy conference in London on Tuesday, touching on the US legislation. Hunt said that the British government does not have the funds to provide similar subsidies for companies based in the UK following the financial backlash that led former Prime Minister Liz Truss to resign. However, Hunt said that the government plans to announce policies in the coming months to help shield companies in the UK, such as opening $6 trillion in pension funds to support the industry.
“This is not a time when it’s going to be easy for us to access the GDP equivalent of $369 billion,” said Hunt. “We have to remember that equation in the US is somewhat coming from behind because the previous president was not remotely interested in net zero.”
“So there is some catch-up element in what the US is doing, but it is a very real competitive threat,” Hunt added.
Hunt told reporters that the British government’s policies could be announced in the coming months when pressed on the date of the policy response.
Meanwhile, nurses in the country will put a pause to their planned strike action to engage in “intensive talks” with the government over pay and working conditions, both sides announced on Tuesday. The Royal College of Nursing and the government said that the first round of discussions would start on Wednesday when health minister Steve Barclay would meet the RCN’s representatives.
“Both sides are committed to finding a fair and reasonable settlement that recognizes the vital role that nurses and nursing play in the National Health Service and the wider economic pressures facing the United Kingdom,” said the statement.
The government said it was inviting teaching unions to “move into formal talks on pay, conditions, and reform” on the condition that the upcoming strikes would be cancelled. The agreement to hold talks with the nurses union meant that the strike planned for March 1 would be cancelled.
