Leaving the European Union is an opportunity for Britain to use taxes and subsidies to encourage companies to increase spending, Prime Minister Boris Johnson said.
In addition to regulatory changes, “you can use tax systems and subsidies to stimulate investment,” he said in an interview with BBC television.
The issue of state aid rules has been a major obstacle to the Brexit trade negotiations. Under the terms of the agreement, each party may impose tariffs on the other if it is clear that the business is being unfairly affected.
The UK is now operating outside the bloc for the first time since the end of the transition period. Johnson said he wants to use the UK’s new autonomy to boost science and “raise the bar” of troubled economies in disadvantaged parts of the country.
Many economists expect more documents and barriers to trade to affect economic growth just as they do the coronavirus pandemic.
Despite a series of new rules for trading with the EU, Brexit is still an advantage for exporters, Johnson said. “There is some bureaucracy and we are trying to eliminate it,” Johnson said when asked about the bureaucracy that went into effect on January 1st. “We have a massive opportunity to broaden our horizons and think globally and broadly.”
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