Leaving the European Union is an opportunity for the UK to use taxes and subsidies to encourage companies to increase spending, said Prime Minister Boris Johnson.
In addition to the regulatory change, “you can use tax systems and subsidies to boost investment,” he said in an interview with BBC television.
The issue of state aid rules was a major obstacle to Brexit trade negotiations. According to the terms of the agreement, either side can impose tariffs on the other if it is clear that business is being unfairly harmed.
The United Kingdom is operating outside the bloc for the first time after the end of the transition period. Johnson said he wants to use the new UK autonomy to boost science and “raise the bar” for struggling economies in underprivileged parts of the country.
Many economists expect more paperwork and barriers to trade to affect economic growth in the same way that the coronavirus pandemic produced the hammers.
Despite a series of new rules for trade with the EU, Brexit is still a blessing for exporters, said Johnson. “There is some bureaucracy and we are trying to remove it,” said Johnson when asked about the bureaucracy that went into effect on January 1. “We have a huge opportunity to expand our horizons and think globally and think big.”
(Adds additional details of the interview.)