The canary in the coal mine was struggling EV start-up Arrival, which said in October it was shifting its production focus from the UK to the US to take advantage of the country’s generous new subsidy package.
Arrival’s statement was blunt. “The major factors in the company’s decision to shift focus to developing its US business included the tax credit recently announced as part of the Inflation Reduction Act – expected to offer between $7,500 (£6300) to $40,000 (£33,000) for commercial vehicles.”
The cash-starved start-up might very well have to shut its doors before taking advantage of those subsidies but the fact that it was willing to up sticks when it was so close to starting UK production shows what a profound effect the US's subsidy programme is having.
The Inflation Reduction Act (IRA) was signed into law in August as a blockbuster $369 billion (£307.6bn)