According to the Telegraph, Britain’s competition watchdog warned Theresa May against moves to prop up struggling industries and regions with subsidies this week.
The CMA is arguing that using a new industrial strategy and initiatives such as the Northern Powerhouse may do more harm than good to the economy.
The Competition and Markets Authority issued a rebuke to advocates of greater state intervention in business in response to the Government’s industrial strategy Green Paper.
Watchdogs warned of the “unintended consequences” of policies that provide support based on the sector or location in which businesses operate. Government efforts to boost Britain’s productivity, which lags behind other major economies, could be damaged rather thanboosted, the CMA cautioned.
It said: “Government rather than market forces may end up ‘picking winners’.
Full Content: Telegraph
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