UK Exchequer Chancellor Urges Measures Against Risks Posed By US Inflation Reduction Act

MOSCOW (UrduPoint News / Sputnik - 29th March, 2023) UK Chancellor of the Exchequer Jeremy Hunt on Wednesday called for measures to protect inward investment against risks posed by the US Inflation Reduction Act (IRA), which provides $369 billion in subsidies to encourage green investments in the United States.

"This is $369 billion of subsidy and there are risks as a result of that and we need to mitigate against those risks. That does not necessarily mean matching subsidy for subsidy but it means making sure the overall package which means people choose to invest in the UK remains attractive," Hunt told the Treasury Committee of the UK lower house.

The IRA was signed by US President Joe Biden in August 2022 to curb inflation.

The document provides for extended tax subsidies to purchase electric vehicles which were assembled in the US and to use batteries with domestically produced components. Under this legislation, nearly $370 billion will be spent on ensuring clean energy and achieving climate goals, and $64 billion on reducing the cost of medicines and health insurance. The act is designed to attract investments in those areas and reduce dependence mainly on Chinese technologies.

In December 2022, UK Secretary of State for business and Trade Kemi Badenoch sent a letter to her US counterpart, Katherine Tai, protesting the IRA and calling the measures protectionist.