Factory chiefs have warned that Joe Biden’s subsidies have made investing in the UK harder to justify.

Three quarters of businesses surveyed by manufacturing group Make UK said incentives in the US, EU and other countries were making investments in Britain more difficult to rationalise.

The US president has poured billions into green subsidies through the Inflation Reduction Act, which offers generous incentives for businesses investing in industries such as electric vehicle manufacturing and clean power.

The EU has pledged to spend €50bn a year on its green transition as it seeks to rival Mr Biden’s plans with its own Green Deal.

However, support in Britain has been piecemeal. The Government has struck bespoke deals with the likes of Port Talbot-owner Tata Steel and Mini to support their transition to net zero but has failed to put in place an overarching scheme.

More than half of companies surveyed by Make UK said they would invest more if Britain had a formal industrial strategy in place.

More than half said they had withheld investment in the past two years because of an uncertain business environment, even though they had the capital available.

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