Speaking exclusively to Left Foot Forward, First Secretary of State Peter Mandelson, outlined the circumstances in which the Government believes it should intervene in markets.
MANDELSON: “I’m not in favour of political fixes to the economy or subsidies for businesses that would not otherwise be able to survive.
But nonetheless there are clear market barriers: clearly early costs for start up companies; there are finance needs for fast growing companies; backing for innovation, which Government has to play its part in supplying. Where there are barriers that are holding these new innovative start up or fast growing companies, those that have new ideas and are capable with the right backing of turning them into world beating products or services, and there’s something that government can do to back those, that’s what we should be doing.”
In July 2000, as Chancellor, Gordon Brown said, “The days of picking winners, uneconomic state subsidies and corporate fixes are over and cannot return.”Like this article? Sign up to Left Foot Forward's weekday email for the latest progressive news and comment - and support campaigning journalism by making a donation today.