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Britain is determined to compete in the global race for green investment, the chancellor has told Sky News, days before the expected announcement that Jaguar Land Rover owner Tata will build a major new battery factory in the country.
Jeremy Hunt said that he was prepared to deploy subsidy money from the government’s £1bn war chest to help support these big green projects, despite warning only last month about the dangers of new subsidies.
It came as he unveiled a host of new measures, worth a combined £650m, designed to help encourage the life sciences and pharmaceuticals sector in the UK.
The Tata chairman is due to visit Downing Street next week to confirm that the Indian industrial giant has chosen Britain over Spain as the location of its new battery plant, which will serve its car business in the UK, as well as Europe.
The competition between the nations was hotly fought, and the Tata package is understood to be worth around £500m, including support on a range of matters, most notably energy costs.
“I can’t talk about any commercial discussions,” Mr Hunt said.
“But what I can say is that we understand – the prime minister and I – that we’re in a global race to attract investment, and we will always do what it takes to make sure the UK remains competitive.”
Asked about whether that included subsidies, he said: “We have a £1bn automotive transformation fund.
“We know that other countries are supporting companies who make these investments.
“It’s obviously good for the UK – not just to create these jobs, but also to transition to net zero – and the transition to electric cars is a very important part of that.”
Distancing from Boris Johnson-style industrial strategy
The comments underline an important shift in the mood music coming from government, which sought to distance itself from Boris Johnson-style industrial strategy in its early days.
The US Inflation Reduction Act, through which Washington is providing hundreds of billions of dollars…
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