UK 'on the slide,' says Ineos founder Sir Jim Ratcliffe

Sir Jim Ratcliffe, the founder of petrochemical giant Ineos and a significant stakeholder in Manchester United, has expressed a loss of confidence in the United Kingdom, describing the nation as "on the slide." He attributes this decline to a combination of high taxes and elevated immigration levels.

Ratcliffe, whose wealth is estimated at approximately £15 billion, voiced his concerns in an interview with the BBC. He argued that failing to invest further in North Sea oil and gas reserves was "insanity" and warned of potential gas shortages this winter due to low storage levels, particularly if a cold snap occurred.

The UK government responded by stating its commitment to economic growth and noting an increase in business investment over the past two years. A spokesperson also expressed confidence in the nation's energy security, citing a diverse energy mix and not anticipating supply issues.

Sir Jim, a proponent of Brexit who has been a tax resident in Monaco since 2020, suggested that a "politics of envy" is driving wealth creators away from the UK. He contrasted this with the United States, where he believes wealth creation is applauded, stating that he would only return to the UK if conditions improved.

Energy Policy Criticisms

Ratcliffe specifically criticized the government's approach to North Sea oil and gas development, calling the hesitation to approve further projects like Rosebank and Jackdaw "absurd." He contended that high taxes on North Sea operators are jeopardizing the sector's viability. While tax reforms for energy company profits are underway, they are not scheduled for full implementation 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," Ratcliffe stated. "If you tax everybody to death, they're all going to leave. And that's what's happening."

While environmental concerns and climate data have fueled arguments against further fossil fuel exploitation, political pressure has mounted to proceed with projects like Rosebank and Jackdaw to support jobs, tax revenues, and energy security. Ratcliffe backed these calls, emphasizing the illogical nature of importing more energy than necessary.

A government spokesperson acknowledged that oil and gas would remain important for decades but stressed the long-term goal of transitioning to homegrown clean power for energy and financial security.

Gas Storage Concerns

Ratcliffe also raised concerns about the UK's low gas storage levels. He warned that a sharp cold spell could lead to a situation where the UK might have to curtail industrial gas use. The UK typically relies on liquefied natural gas (LNG) and imports from Europe, rather than extensive domestic storage.

Energy consultants have indicated that while EU gas storage levels are lower than usual for this time of year, the physical risk of running out of gas is relatively low, especially if projects like Jackdaw proceed. Uncertainty remains, however, regarding U.S. policy on LNG exports.

Carbon Capture and Other Criticisms

Ratcliffe's comments came during the launch of the EU's first carbon capture and storage (CCS) system in Denmark, an Ineos-invested project. He expressed disappointment that the UK government had not provided sufficient support for similar developments, despite a £21.7 billion commitment to CCS projects over 25 years, with no projects yet operational in the UK.

Beyond energy and tax policy, Ratcliffe also critiqued the UK's levels of immigration and welfare spending, stating that politicians have been unwilling to address these issues effectively. He previously caused controversy earlier this year with remarks about the UK being "colonised by immigrants," for which he later apologized for offending some people.