US Inflation Reduction Act

13. What assessment he has made of the impact of the US Inflation Reduction Act on the UK’s relationship with the US.

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.

The Inflation Reduction Act is attracting investment from the UK to the US, as industry groups across our economy are saying. 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?

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.

I call the shadow Foreign Secretary.

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? It will be interesting to see whether the Foreign Secretary answers.

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.