Business leaders call for UK version of Joe Biden’s Inflation Reduction Act

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Institute of Directors poll found a majority of members would support the proposal


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A survey of UK business leaders has found the vast majority would support a British version of US President Joe Biden’s inflation reduction act, which subsidizes domestic investment in green technologies.

Overall, 78.9% of the 859 Institute of Directors (IoD) members who were polled supported the idea. A majority of supporters said they supported the plan because it would help combat climate change, while a significant minority said it would “level the playing field with the EU and the US”. “.

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Of those who opposed the plan, nearly two-thirds said it was a better use of taxpayer resources than green subsidies, while the remainder said it was a “protectionist policy”.

IOD policy director Dr Roger Barker said the UK lags behind the US and the EU, which already have similar plans.

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“The Inflation Reduction Act in the US is a game-changer that cannot be ignored by UK policy makers,” he said. “This provides substantial incentives for companies to pursue green innovations and green technologies in the United States rather than the United Kingdom.

“The EU is also raising the stakes through its ‘Green Deal Industrial Plan’ which, among other things, is proposing significant relaxation of EU state aid rules when it comes to investment in green technology.

“In 2021, Prime Minister Boris Johnson announced that the UK’s strategy was to ‘lead the world in ending our contribution to climate change’. However, we have now reached a stage where that rhetoric needs to be converted into substance. ,

With Chancellor Jeremy Hunt to announce the spring budget next week, Barker said he was concerned that Hunt would avoid major long-term investment plans, focusing instead on “short-term budgetary concerns”.

“A particular concern is that short-term budgetary concerns will override the strategic imperative of establishing a market leadership position in green business,” he said. “It is vital that government and the private sector work together, otherwise the UK will find itself left behind in the fast-paced race to lead the green economy.

“The UK deserves nothing less than its own version of the Inflation Reduction Act – to ensure the UK becomes the global destination of choice for green investment of all kinds.”

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