Sir Jim Ratcliffe’s energy giant Ineos has said Britain is too “negative” to lure investment as it backs Donald Trump’s America instead.
Ineos Energy said high taxes on oil and gas in the UK meant it was no longer “economically attractive” to invest in Britain’s offshore industry.
The company has announced it is investing £3billion in the United States instead. Ineos chairman Brian Gilvary said: “The UK's current tax regime, its over-regulation and the negative political attitude towards oil and gas are barriers that would deter any investor now."
Writing in The Telegraph, he added: “The US, by contrast, has long been an attractive market for energy investment – with a stable fiscal regime, supported by governments that understand the importance of affordable energy security.”
The comments raise fresh questions over the UK’s energy policy under Labour. Ed Miliband, the Energy Secretary, has vowed to block exploration for new oil and gas fields.
Rachel Reeves, the Chancellor, has also increased the net tax on profits from oil and gas to 78% – the highest of any sector in Britain. The US total effective tax rate for oil and gas is roughly half the UK’s, at 40%.
Mr Gilvary, a former BP executive, said the world needed reliable energy sources such as oil and gas and that Mr Miliband’s policy of not issuing new offshore licences was “similar to tying your legs together at the start of a race”.
Click here to read the full piece in today's Telegraph.