Billionaire industrialist Sir Jim Ratcliffe has launched a scathing critique of the Labour Party's economic strategy, issuing a grave warning that proposed tax increases could devastate British industry and trigger a mass exodus of investment to the United States.
The INEOS chairman and Manchester United co-owner, one of Britain's most prominent business leaders, argues that the UK is already at a significant competitive disadvantage. He points to the vastly more attractive investment landscape in the US, fuelled by President Biden's multi-billion dollar Inflation Reduction Act.
A Stark Choice for British Industry
In a direct message to Sir Keir Starmer, Ratcliffe stated that the current investment climate is pushing companies to look across the Atlantic. 'The Americans are rolling out the red carpet with substantial financial incentives for major projects,' he explained. 'The UK, by contrast, is considering policies that would make it even harder to justify investing here. It's a very simple equation for any business leader.'
The Grangemouth Threat and UK Jobs
The warning is not merely theoretical. Ratcliffe's chemical giant, INEOS, is currently weighing a critical decision on the future of its vast Grangemouth refinery and petrochemical plant in Scotland—a site that supports thousands of direct and indirect jobs.
He explicitly linked the plant's future to the government's approach, suggesting that unfavourable tax policies could be the final nail in the coffin for such large-scale industrial operations in Britain. The potential closure of Grangemouth would represent a massive blow to the UK's manufacturing base and energy security.
Labour's Proposed Reforms Under Fire
Ratcliffe's comments take aim at several key Labour proposals, including plans to extend the Energy Profits Levy (windfall tax) and remove the favourable tax benefits currently associated on non-domiciled residents. The business leader argues that these measures would stifle growth, discourage entrepreneurship, and ultimately reduce the tax revenue collected by the Treasury.
He champions a pro-business, low-tax environment as the only proven method to stimulate economic growth, create high-paying jobs, and fund public services like the NHS through organic, increased tax receipts from a thriving private sector.
The intervention from a figure of Ratcliffe's stature places significant pressure on the Labour leadership to clarify its economic plans and reassure the business community that the UK will remain a competitive place to invest and grow a company.
