Justice secretary Michael Gove has pointed to an increased ability to bail out failing sectors as an important side-effect of a Leave vote next week.
Speaking to Share Radio, Gove said that Brexit would free up policymakers to launch more effective interventions.
“I am not a great fan of government picking winners or state aid but sometimes it is necessary to support industries through troubled times and of course the government is doing, even as we speak at the moment, a significant amount to try to help the steel workers in Port Talbot," he said.
“Were we outside the European Union, then we would have more flexibility."
It comes as the government is currently in discussions over support for the UK's steel industry, having previously mooted funding a 25 per cent stake in Port Talbot steelworks in support of a new buyer.