Billionaire industrialist Sir Jim Ratcliffe has launched a scathing attack on the UK's carbon taxation policy, labelling it "the most idiotic tax in the world." His incendiary comments come just one day after the Government intervened to provide a crucial £120 million lifeline to his threatened Grangemouth chemical plant in Scotland.
A Lifeline for UK Manufacturing and a Stark Warning
The rescue package secured around 500 jobs at the Grangemouth facility, which is the UK's last remaining producer of ethylene. This chemical is a vital component for plastics used in critical sectors like manufacturing, automotive, and aerospace. Sir Jim, the owner of petrochemicals giant Ineos and a minority investor in Manchester United, stated the financial support was "only a start in reestablishing a competitive manufacturing base for the country."
However, he immediately followed this with a forceful demand for policy change. In a strongly-worded statement, Ratcliffe argued: "We now must scrap carbon taxation, the most idiotic tax in the world. It simply squeezes the life out of home production as there is no cash left for investment and we end up replacing home-produced goods with imported products from places that still burn coal!"
The 'Ridiculous' Levy That 'Kills Industry'
Ratcliffe described the levy on carbon emissions as "an utterly ridiculous tax that kills industry and increases global CO2 emissions." His criticism presents a direct challenge to Chancellor Rachel Reeves, whose recent budget has faced accusations of being anti-business from some quarters.
The Ineos chairman's broadside is set against a backdrop of significant job losses in the sector. Earlier this year, Ineos shut down its oil refinery at Grangemouth, resulting in more than 400 redundancies. The company continues to operate significant energy assets, including the Breagh gas field and the Clipper South rig in the North Sea.
A Call for North Sea Investment
Alongside his attack on carbon taxes, Sir Jim Ratcliffe issued a call to maximise domestic energy production. "We must maximise output from the North Sea which still has abundant reserves," he urged. He proposed a specific fiscal change, arguing: "If the Government simply applied corporation tax rates to North Sea production, investment would rise and output would grow."
This plea contrasts sharply with the current tax regime overseen by Energy Secretary Ed Miliband. The government recently increased the tax on North Sea producers' earnings from 75% to 78%, creating one of the highest levies of its kind globally. Ratcliffe's intervention highlights the growing tension between industrial policy, environmental goals, and economic competitiveness in the UK.
