The competition for investments is becoming more rapid: Now Great Britain also wants to pledge to boost its own economy. With a massive investment program worth 4.5 billion pounds (5.18 billion euros), the country aims to strengthen its domestic industry, focusing entirely on carbon neutrality.
Reflecting on the USA, which provides extensive government subsidies for eco-friendly businesses with the so-called "Inflation Reduction Act" (IRA), the United Kingdom is now following this example. However, Secretary of State for Business Kemi Badenoch emphasizes that they will not allow themselves to be drawn into a subsidies battle.
"For proponents of the free market, private sector capital investment is the key to further growth in our manufacturing industry, which will secure jobs and growth in the United Kingdom," says the minister.
A focus of the investment program is on the automobile industry, into which more than 2 billion pounds are to be invested. In addition, 975 million pounds are to be invested in the aerospace industry. The money is to flow into both emission-free vehicles and energy-efficient aircraft equipment.
Prime Minister Rishi Sunak emphasizes that the government has set ambitious goals to make Britain a world leader in manufacturing. The investments now announced will give the industry security for growth and investments, thereby creating the basis for new jobs and opportunities for the entire country, says Sunak.
However, the green rhetoric is partly contradicted by the recent decisions of the government. Just in September, Prime Minister Sunak withdrew the regulation that intended to ban combustion engine cars in the United Kingdom from 2030. The transition has been postponed to 2035. The conversion from gas boilers to heat pumps in private households has also been slowed down and homeowners are no longer obliged to improve the often poor insulation of their houses.
Analysts suspect that the government is responding to similar initiatives by the opposition Labour Party with its multi-billion investment plans, which, according to polls, is currently leading significantly.
On the upcoming Monday, a global investment summit is also taking place in London, where further economic initiatives for Great Britain will be outlined. Just a few days ago, Chancellor of the Exchequer Jeremy Hunt announced relief measures for businesses, which shows that the conservative government is indeed making efforts to address the interests of companies.
