Once upon a time, Conservative governments were accused of being too close to business, if not in the pockets of business leaders – thanks to their often generous party donations.
How the tables have turned.
Now, it is some of our most brilliant businessmen and women who are accusing the Conservatives of being so hostile towards them that they are being driven out of the country.
The latest on the attack is Sir Jim Ratcliffe, founder and chairman of petrochemicals giant Ineos, the fourth largest chemicals group in the world.
Ratcliffe doesn’t mince his words.
Ruling: The Competition and Markets Authority blocked the acquisition by Ineos of a $1bn concrete additives business from Sika AG, a Swiss multinational
He claims the Government is blocking deals which would benefit the UK, pursuing a ridiculous North Sea windfall tax, no longer supports our manufacturing base and is driving business elsewhere.
The main target of Ratcliffe’s attack is the decision by the Competition and Markets Authority to block the acquisition by Ineos of a $1billion concrete additives business from Sika AG, a Swiss multinational speciality chemical business.
Ratcliffe said Ineos agreed to buy the concrete admixtures business from Sika back in January.
They jointly put the deal to the CMA for approval on March 7, with supporting evidence which showed there was no overlap between the businesses. Nine days later, the CMA reported back with ‘negative feedback’.
Ratcliffe asked for face-to-face meetings but was denied. Very bizarre. Then, Sika was snapped up by a US company.
You can see why Ratcliffe is so angry, arguing that it is another example of a deal being stopped ‘that would benefit the UK’.
Several calls to the CMA yesterday to find out more went unanswered and there are no details of the proposed merger on its website.
There are some who might say Ratcliffe’s criticism of competition and industrial policy is a bit rich, if not hypocritical.
After all, nearly three years ago, he left Hampshire for tax-free Monaco. Some might say Ratcliffe can’t care that much for his country if he does not want to pay taxes.
If you were cynical, you might also say that Ratcliffe – who has contributed to the book Grit, Rigour & Humour, telling the story of Ineos, which is published next week – is warming up the ground should he be successful in buying Manchester United from the Glazer family.
That doesn’t sound like his style at all. He is far too much of a maverick. But if Ratcliffe is correct that there were no substantial regulatory reasons to halt the merger, then the CMA has some explaining to do.
He is also right to say the CMA is in danger of becoming too aggressive a regulator – and one that lets through too many foreign takeovers of UK businesses.
It is tragic – and unnecessary – but there is no doubt that the UK is becoming a less attractive place to do business. No 10 should be rattled.
Savings gain
A fascinating piece of research from Bloomberg shows that the latest interest rate rises are benefiting savers more than they are costing those with mortgages.
Analysis of the Bank of England’s data shows that UK households are about £10billion a year wealthier because of the rate rises. For now that is.
There will be a time lag because so many mortgage holders – around 85 per cent – are on fixed-rate mortgages yet to come to an end.
It’s another reason why lifting interest rates 13 times to 5 per cent is still not having the desired impact on inflation.
Another reason is that fewer people today have mortgages. There are 10m mortgage holders today – around 30 per cent of households, compared with 4 per cent in 2008. This time, pain is being aimed at a smaller group of households.
And it is also why the Bank of England needs to stop raising rates, and wait to assess the impact of existing rises.
Millionaires can pay more
You may have read about Patriotic Millionaires UK, the group of uber-rich who don’t believe they pay enough tax.
They have written to Rishi Sunak arguing for a 1-2 per cent wealth tax on assets over £10million, a move which they reckon could raise an extra £50billion a year.
They would also like to see capital gains tax hiked to the same level as income tax and end inheritance tax loopholes.
Here is a counter-proposal. They could go to the Government’s website where there is a voluntary tax scheme already in place. Indeed, these millionaires can even choose to pay directly into a special pot to reduce the national debt.
As they say, put your money where your mouth is.
