Commons Sense

House of Commons · Ministers' Questions

US Inflation Reduction Act

Tuesday 13 June 2023 · 3 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 3 Not answered 0

Key points

  • The US and UK Governments have a trading relationship worth 280 billion.
  • The Prime Minister and President Biden signed the Atlantic declaration, a first-of-its-kind economic partnership.
  • The UK Government emphasizes its economic strategy and close cooperation with the US, avoiding a subsidy race.

Topics (select to filter)

Questions & Answers

Q1 Bill Esterson Lab Sefton Central
Economy Foreign Affairs Business & Trade
Context

The US Inflation Reduction Act is causing concern over its impact on investment and trade between the UK and the US.

Question

What assessment has been made of the impact of the US Inflation Reduction Act on the UK's relationship with the US?

Answer from David Rutley

The US and UK Governments do more together than any other two Governments in the world. We have a trading relationship worth £280 billion, and last week the Prime Minister was in Washington when he and President Biden signed the Atlantic declaration, a first-of-its-kind economic partnership.

Partly answered

Not addressed: Did not provide an assessment of the impact of the Inflation Reduction Act on the UK-US relationship.

How: Changes Subject To Broader Economic Partnerships

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Q2 Bill Esterson Lab Sefton Central
Economy Business & Trade
Context

The refusal to publish an industrial strategy is seen as a lack of response to the Inflation Reduction Act.

Question

The Inflation Reduction Act is attracting investment from the UK to the US, and industry groups across our economy are saying this. Does the Minister agree that the refusal to publish an industrial strategy shows there will be no made in Britain plan in response to President Biden's made in America agenda while this Conservative Government remain in office?

Answer from David Rutley

Well, that is an interesting question, to which I say that we have a very clear economic strategy, and the Atlantic declaration is a very important element in strengthening our partnership with the US. The beginning of the negotiations on critical minerals will make sure UK companies are eligible for tax credits under the US Inflation Reduction Act; this is a hugely important and positive step forward.

Partly answered

Not addressed: Did not acknowledge the refusal to publish an industrial strategy or address if there's no made in Britain plan.

How: Changes Subject To Economic Strategy

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Q3 David Lammy Lab Tottenham
Climate Brexit Foreign Affairs
Context

The UK government's Secretary of State and Chancellor have described the act as dangerous and distortive, contrasting with allies' investment strategies.

Question

Our allies in the United States, the European Union, Australia and Germany have all entered the global race to reach net zero and create the jobs of the future with massive public investment, but the Government's Secretary of State for Energy Security and Net Zero described the United States Inflation Reduction Act as “dangerous” and the Chancellor described it as “distortive” and “not the British way.” Does the Foreign Secretary agree with his colleagues in Cabinet or our allies in the United States?

Answer from David Rutley

We are working incredibly closely with the United States. They are taking their steps forward; we do not want to get involved with the subsidy race, because the UK had a head start of over a decade on green investment. As the right hon. Gentleman knows, as we have been at similar meetings, we are working incredibly closely with the United States and it is a very strong relationship. In my recent visit to the US we highlighted that there is $1 trillion invested in each of our economies; we are going to move forward from that very strong space.

Partly answered

Not addressed: Did not specify agreement with colleagues or allies on the act's impact.

How: Changes Subject To Existing Economic Relations

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