Sir Jim Ratcliffe backs Tory pledge to scrap Net Zero levies amid 'killing British industry' fears

Mrs Badenoch unveiled the plans on April 2, stating that current carbon charges are "killing British industry and fatally weakening our national resilience".

The Conservative leader's proposals would remove the requirement for industrial firms to purchase carbon credits under the Emissions Trading Scheme.

She said: "I have heard from countless bosses how carbon taxes and green levies have made doing business in Britain much, much harder than it needs to be."

Major industrial companies have backed the proposals, including ExxonMobil and Huntsman Corporation.

Paul Greenwood, chairman of ExxonMobil's UK operations which oversees the Fawley refinery in Hampshire, said his firm "pays hundreds of millions of pounds in CO2 costs every year that many of our international competitors do not pay.

"We support policies that create a level playing field and allow us to continue building the strong refineries on which this country depends. Continuing as-is risks both jobs and our national security."

Peter Huntsman, president of Huntsman Corporation, whose Wilton aniline plant in Teesside faces uncertainty, warned that current policy is affecting competitiveness.

Mr Huntsman said: "The carbon tax, along with banning domestic energy production, is driving the deindustrialisation of Britain, pushing up costs, weakening competitiveness and destroying jobs and livelihoods."

Industry organisations including the Chemical Industries Association and Ceramics UK have also expressed support for the Conservative plans.

Environmental groups have raised concerns about the proposals and their potential impact on climate policy.

Doug Parr, chief scientist at Greenpeace UK, said alternative approaches to carbon taxation could be used to meet environmental objectives, including redistributing revenue to taxpayers.

Mr Parr said: "The question for the Conservatives now is how are they going to fill the hole in tax revenues that this would create, and, more importantly, if they say they believe in climate change and scientists are correct that it is one of the biggest threats to our future, then what are they actually going to do about it?"

He added: "At the moment, they are stripping away all the policy measures that would tackle the problem."

Labour's industry minister Chris McDonald criticised Mrs Badenoch's position, pointing to her previous role in Government.

Mr McDonald said: "It's a total embarrassment for her to, yet again, be railing against her own work in government. Her new pledge is wrong, and it would hammer industry."

He compared the proposals to previous economic policies, describing them as a "multibillion-pound unfunded spending commitment" that would place pressure on working people.

The minister said Labour's Industrial Strategy would reduce business electricity costs by around 25 per cent while supporting investment and job creation across the UK.