Energy giant Ineos has ceased all British investment and will channel £3billion into American operations, blaming the Labour Government's taxation of North Sea oil and gas extraction.
The company, owned by billionaire Sir Jim Ratcliffe, cited Britain's "unstable fiscal regime" as the primary factor behind the strategic business shift.
Brian Gilvary, who leads Ineos's energy arm, confirmed the firm had "stopped investing in Britain" and would direct future capital exclusively towards the United States.
He described the UK as having "one of the most unstable fiscal regimes in the world" for natural resources and energy sectors.
Sir Jim Ratcliffe's energy firm is claiming it 'cannot invest' in Britain due to Labour's tax raid
|PA / GETTY
Under Energy Secretary Ed Miliband, Labour has prioritised a net zero strategy despite facing calls for more drilling in the North Sea. This latest investment freeze from the energy giant follows Ineos's closure of Scotland's Grangemouth oil refinery after a century of operations.
The company has cautioned that its neighbouring Olefins and Polymers facility, which supplies materials to numerous British plastics manufacturers, faces similar risks due to excessive taxation and energy expenses.
"We cannot invest with any certainty because we can't be sure what future tax rates will be," Mr Gilvary stated.
Sir Jim, who is the owner of Manchester United owner, has previously highlighted how Britain's elevated energy costs, which he claims have driven by environmental levies, have rendered such facilities economically unviable.
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| GETTYThe executive highlighted America's superior investment climate, noting the country's consistent track record and comprehensive understanding of domestic energy supply's economic benefits.
"The United States has got a long track record. In the 1990s, it was producing 6.5 million barrels of oil a day and importing five million, but now it's producing 30 million barrels a day and exporting. That's proper energy security and a proper fiscal regime," he explained.
Ineos Energy maintains operations at the Breagh and Clipper South platform in the North Sea, alongside interests in the Greater Laggan gas fields.
The company also manages the Forties Pipeline System through a separate subsidiary, though volumes have declined as operators reduce North Sea investments.
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Chancellor Rachel Reeves increased the windfall levy on oil and gas profits to 78 per cent, up from the 75 per cent rate implemented by the previous Conservative administration.
Critics claim tax burden compounds Britain's industrial competitiveness challenges, with electricity prices reaching 26.0p per kilowatt hour by late 2024, compared to 14.8p in early 2021.
Industrial gas costs similarly surged from 2.5p to 5.5p per kilowatt hour during this period.
These rates exceed American equivalents by five times and European levels by three times, contributing to a 33 per cent decline in energy-intensive industrial output.
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Ed Miliband is spearheading the Government's net zero drive | PAA Treasury spokesperson responded: "We know that oil and gas will be with us for decades to come. We will manage the transition to clean energy in a balanced way that helps communities, creates jobs and supports workers to reskill."
Earlier this year, Sir Jim Ratcliffe's business empire was dealt a blow its debt pile is now projected to reach nearly £10billion this year by two leading credit rating agencies.
In February, Fitch Ratings and Moody's warned that mogul's chemicals firm is acquiring debts between five to six times larger than the firm's yearly earnings.
Both agencies downgraded their outlooks for the company to "negative", which could dent its ability to borrow from the leading investment banks at the same terms it was offered in the past.