BILLIONAIRE businessman Sir Jim Ratcliffe has slammed Net Zero carbon levies as “the most idiotic tax in the world”.
The Manchester United co-owner, who is boss of chemicals firm INEOS, called on the government to scrap the taxes as it harms investment.
He also demands drilling in the “abundant reserves” of the North Sea oil and gas fields in the face of the government’s push for green energy.
The punishing carbon costs aim to incentivise businesses to cut CO2 emissions in the UK but not every country enforces such taxes.
But Sir Jim, speaking after his firm secured a government support package at their Grangemouth plant, said: “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!
“An utterly ridiculous tax that kills industry and increases global CO2 emissions.”
His intervention came as the government announced it will help keep the Ineos chemical plant at Grangemouth operating following an announcement it would shut.
The rescue plan will see more than £120 million support package which will help secure around 500 jobs.
He also called on the government to come up with an energy strategy including a shake-up of taxes on oil and gas firms.
Ministers will allow oil and gas drillers to develop new fields but only alongside existing ones. But no new licenses will be issued for new fields.
He also wants an overhaul of the windfall tax on the companies which was introduced after Russia’s invasion of Ukraine – but then increased and extended after Labour took power.
It has meant the headline tax rate stands at 78 per cent up from 40 per cent in 2022. It runs until 2030.
Sir Jim added: “Furthermore, we need an energy strategy that provides competitive energy costs to industry and we must maximise our output from the North Sea which still has abundant reserves.
“If the government simply applied corporation tax rates to North Sea production, investment would rise and output would grow.”
The comments come after it emerged INEOS will invest £150 million at Grangemouth which will be supported by a £75 million loan guarantee from government and a £50 million grant.
He added: “Grangemouth is hugely important both economically and strategically.
“We need jobs.
“We need home production.
“We need national security which we lose if we can’t run hospitals or make armaments or transport food.
“The government’s support for Grangemouth is a great start but is only a start in reestablishing a competitive manufacturing base for the country.”
