Sir Jim Ratcliffe, chief executive of Ineos and co-owner of Manchester United, has criticized Labour's green energy plans, claiming they could tax North Sea oil and gas production to “de-exist”.
It comes just days after he publicly supported Labor leader Sir Keir Starmer.
Ratcliffe warned that Labour's proposals to increase taxes on oil and gas producers and cut tax breaks in the North Sea would threaten Britain's energy security and lead to increased reliance on imported energy. “If we close the North Sea, what will that achieve? Because we will only have to import our energy.”
Despite his recent endorsement of Sir Keir, Ratcliffe remains skeptical of Labour's net zero policies. At The Times CEO Summit in London, he described Labour's plan to decarbonise the UK's electricity system by 2030 as “ridiculous”, questioning the feasibility of such a target. “Where will all this (electricity) come from?” he asked, highlighting the crucial role of gas in maintaining electricity supplies when renewable energy sources such as wind fall short.
Ratcliffe stressed the risks associated with Labour's 2030 deadline, noting that most nuclear power stations in the UK are due to close around that time. With major nuclear stations such as Hartlepool and Heysham 1 expected to close by 2026, and Heysham 2 and Torness by 2028, the UK will rely solely on Sizewell B until Hinkley Point C is operational, which is not expected before 2031.
“We are not doing well at building new nuclear power plants,” Ratcliffe said, criticizing the long timelines for building new plants. He said that without gas and nuclear, and with inconsistent wind energy production, the UK could face major energy shortages.
Labor responded by stressing that they plan to keep gas-fired power stations as a backup to ensure reliable electricity supplies. These plants, along with power provided by interconnectors from other countries, will be available when renewable energy sources are in short supply due to weather conditions or increased demand.
Ratcliffe, who has a net worth of £11.9 billion, has been a strong supporter of Brexit, but has criticized the Conservative government's handling of Brexit and its economic management. “The government spends (more than) £1 trillion a year, which is an enormous amount of money, and it is quite clearly not well spent,” he said.
His criticism of Labour's energy policy underscores the debate about the future of the UK's energy sector and the balance between achieving net zero targets and maintaining energy security.