One of Britain’s richest people, Sir Jim Ratcliffe, says he has lost confidence in the UK, describing the country as “on the slide”.
The founder of petrochemical giant Ineos, who also owns a large stake in Manchester United, said the UK was in decline due to a combination of high taxes and high immigration.
He told the failing to invest further in North Sea oil and gas amounted to “insanity” and warned gas storage was so low that the UK could “run out of gas” if there was a cold snap this winter.
In response to the billionaire’s criticism, the government said it was working to deliver growth and that business investment had increased in the last two years.
A spokesperson said they did not foresee any problems with gas supply: “We have a diverse energy mix and are confident in our security of supply.”
Sir Jim, whose wealth is estimated to be around £15bn, has prompted controversy in the past with his comments on immigration. He was a supporter of Brexit but has been a tax resident in Monaco since 2020.
The businessman’s UK exit has been followed by other high-profile billionaires, including steel tycoon Lakshmi Mittal and most recently hedge-fund boss Chris Rokos.
Sir Jim said the politics of envy was driving people away from the UK.
“In America they applaud people who create wealth,” he said. “Unfortunately the UK has got a bit of a green eye towards wealth at the moment.”
He said for him to return to the UK “things would have to get better”.
Prime Minister Andy Burnham has said he will take a “pragmatic approach” to oil and gas, but one of the biggest decisions facing the government, whether to give the go-ahead to further development of the oil and gas fields at Rosebank and Jackdaw, is still waiting to be resolved.
Sir Jim criticised the hesitation and suggested high taxes on North Sea operators were threatening the sector’s viability. Tax on energy company profits is being reformed, but won’t be fully implemented until 2030.
Ineos operates the Forties pipeline which transports about 30% of the UK’s North Sea oil.
“You would expect [the government] to exploit our natural resources and we’re clearly not doing that. We’re shutting it down.
“If you tax everybody to death, they’re all going to leave. And that’s what’s happening.”
Recent climate data combined with record heatwaves have given weight to the argument against further exploitation of fossil fuels. However, political pressure has grown on the government to proceed with Rosebank and Jackdaw to support UK jobs, tax revenues and boost energy security.
Sir Jim backed those calls, saying it was “absurd” to import more energy than necessary.
The government spokesperson said that oil and gas would play an important role in the UK “for decades to come”, but they added: “The transition to homegrown clean power is the only way to deliver energy and financial security for families and businesses.”