Owl says: but if we are all going to be richer by leaving the EU, why will this be needed?
And in a “free market” aren’t uneconomic businesses supposed to fail? Confused(dot) Owl!
“Tories slammed by free market groups over state aid pledges.
Business and free market groups slammed pledges today by Boris Johnson to expand state aid for businesses if the Conservative Party win the upcoming election.
In a press conference today, Johnson promised to expand Britain’s state aid regime once the UK leaves the EU.
“We will back British businesses by introducing a new state aid regime which makes it faster and easier for the government to intervene to protect jobs when an industry is in trouble,” a briefing document said.
Head of regulatory affairs at the Institute of Economic Affairs (IEA) Victoria Hewson said support for state aid was “veiled support for cronyism.”
“For all the lip service the Conservatives pay to free markets and free enterprise, today’s announcements about state aid call into question their basic understanding of how these systems work,” she said.
“Calls to expand state aid translate to veiled support for cronyism. Interventionist and protectionist policies always end up disadvantaging smaller businesses in favour of a few giants.”
A spokesperson for the Institute of Directors said: “It’s not clear how these proposals will fit with ambitions of a ‘Global Britain’. The Conservatives must be wary of opening a can of worms on state aid, it’s important to have consistent rules in place to resist the impulse of unwarranted protectionism.” … “