Daily Briefing – Tuesday 21st July

Good morning and welcome to your Unbound Daily Briefing for Tuesday 21st July - the stories we are covering today include:

• Burnham's Brexit Benefits
• Nationalisation of British Steel

Burnham's Brexit Benefits

The new UK Prime Minister is in seat, and has started the process of putting in place new cabinet ministers to form his new Government. One of his first actions, announced late last night, is the temporary removal of VAT on domestic electricity bills to ease the cost of living for GB households. This is a change not possible as an EU member, as demonstrated by how the change will not take effect in Northern Ireland where the EUs VAT rules still apply. As stated in the Government's press release on the changes, "Under the terms of the UK’s exit from the EU, the EU VAT rates apply in NI on goods, including electricity. Agreement from the EU to implement in NI would be necessary."

• Read the Government press release on the removal of VAT on domestic electricity bills in GB

Nationalisation of British Steel

One of the last actions of the Keir Starmer Government, prior to both the summer recess and the transfer of leadership to Andy Burnham, was to renationalise British Steel. Nationalisation of British companies is a topic misunderstood by many within the Brexit debate, and Britain Unbound will be publishing more on this topic in the coming days as an explainer into the limitations of state ownership within the EU, but to summarise here - it is possible for the state to own a company within the EU, but it is not possible for that state-owned company to receive any preferential treatment from the state, or to be awarded contracts without competition from bidders across the EU. So this intention by the UK Government to secure British Steel and protect the critical national steelmaking capability, would not be possible from within the EU.

• Read the BBC Article on the Nationalisation of British Steel