Sir James Dyson has denounced Rachel Reeves for what he branded ‘revenge economics’ – warning her tax raids on farmers and dithering over North Sea gas drilling are damaging Britain and its security.
The billionaire inventor said the Chancellor’s ‘death taxes’ on farmers and Ed Miliband’s continued defence of carbon taxes is weakening Britain’s capacity to stay self-sufficient in both food and energy production.
Ms Reeves previously announced that, from 2027, farming assets would be subject to a 20 per cent inheritance tax – a move that sparked a major backlash from Labour MPs in rural constituencies and forced the Prime Minister to scale back the policy.
The threshold for passing on agricultural assets free from inheritance tax will now increase from £1 million to £2.5 million.
Sir James said there is ‘no possible justification’ for failing to make the UK self-sufficient, and said Ms Reeves is ‘sacrificing key elements’ of Britain’s national security to carry out a politically vindictive strike against business and wealth creation.
He said: ‘The amount her death tax on family firms generates, which no foreign, private equity or publicly listed business has to pay, will be dwarfed by the loss of income tax and corporation tax as businesses disappear.
‘The combination of tax hikes and ever more restrictive employment laws will ramp up unemployment – already above five per cent and rising – and further erode the tax take.
He added Labour has put ‘revenge economics’ at the heart of their agenda, with damaging effects on the UK and its security.
Billionaire inventor Sir James Dyson (pictured) has denounced Rachel Reeves for what he branded ‘revenge economics’
Sir James said there is ‘no possible justification’ for failing to make the UK self-sufficient, and said Rachel Reeves (picture) is ‘sacrificing key elements’ of Britain’s national security
In an interview with The Times, Sir James also claimed the Prime Minister was driving the UK into dependence on ‘unreliable imports’ for energy and food, two of the nation’s most critical resources.
He pointed out that Labour has been ‘incredibly slow’ to start fracking and North Sea gas drilling, while continuing to ‘recklessly’ buy energy from overseas.
Energy Secretary Ed Miliband is currently considering the go-ahead for the North Sea’s first major gas project, Jackdaw, yet remains against any development of the massive Rosebank oil field.
Mr Miliband has faced growing pressure to lift the ban on North Sea exploration as the Iran war disrupts energy supplies.
No formal decision on either project is expected before next month’s Scottish elections, while the Offshore Petroleum Regulator for Environment and Decommissioning carries out its assessment.
So far, Sir Keir Starmer has declined to comment publicly on the debate over expanding North Sea operations.
Sir James described this as ‘folly.’
He said: ‘As President Trump likes to remind us, the US has its own energy so can survive without the Strait of Hormuz being open, while Britain, under Ed Miliband’s perverse destruction of our energy assets, cannot.’
Sir James pointed out that Labour has been ‘incredibly slow’ to start fracking and North Sea gas drilling. Energy Secretary Mr Miliband (pictured) is currently considering the go-ahead for the North Sea’s first major gas project, Jackdaw
Sir James’s (pictured) comments come as Ms Reeves faces mounting pressure to help struggling drivers, as it emerged last month that the Government stands to gain an £8 billion windfall from soaring energy prices
However, Sir James said Conservative leader Kemi Badenoch’s proposal to scrap carbon taxes was a ‘step in the right direction.’
He added there is no sense in ‘boasting about leading the world on renewables’ while importing carbon at prices set by others, calling it an ‘inefficient and anti-aspiration’ energy policy – a critique that also applies to food.
Sir James further warned that the Chancellor’s response is to ‘heartlessly destroy’ local farms and businesses with her 40 per cent tax raid, even as they are faced with soaring costs for fuel, fertiliser and wages.
He added the government is doing ‘its best’ to undermine anyone or anything striving to be innovative and productive to help ‘secure’ the nation’s future.
His comments come as Ms Reeves faces mounting pressure to help struggling drivers, as it emerged last month that the Government stands to gain an £8 billion windfall from soaring energy prices.
The Chancellor continues to refuse calls – mirrored by countries including Australia, Spain, and Poland – to cut fuel duty, despite chaos in the Middle East.
Meanwhile, surging oil prices have pushed diesel above £1.80 a litre and petrol to £1.52, even as the Treasury is believed to be raking in an extra £20 million a day.
The windfall comes from higher VAT on fuel, the levy on North Sea profits, and ‘excess profit’ taxes on power generators.
Rising debt interest payments are being offset by the boost in inflation, which is also expected to increase income tax receipts.
Millions of Britons now face further strain as pay rises push them deeper into the tax system, following Ms Reeves’s freeze on tax thresholds until 2031.