Leaving the European Union represents an opportunity for the UK to use taxes and subsidies to encourage companies to ramp up their 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 the BBC.
The issue of state aid rules was a major obstacle to Brexit trade talks. Under the terms of the deal, either party can impose tariffs on the other if it is clear that companies are being unfairly undermined.
The UK is now operating outside the bloc for the first time after the end of the transition period. Johnson has said he wants to use the UK’s new autonomy to boost science and take the struggling economies of disadvantaged parts of the country to the next level.
Many economists expect more paperwork and trade barriers to hurt economic growth, just as the coronavirus pandemic is slowing production.
Despite a slew of new rules for trade with the EU, Brexit is still a boon for exporters, Johnson said. “There’s some bureaucracy and we’re trying to take it out,” Johnson said when asked about the red tape that went into effect January 1. “We have a tremendous opportunity to broaden our horizons and think globally and big.”
(Adds extra details from an interview.)