Business

‘UK could be bankrupt in two years’

Ryanair CEO Michael O’Leary has described the UK government’s economic plan as “nuts”.

O’Leary said the mini-budget could bankrupt the UK economy in the coming years.

Chancellor Kwasi Quarting announced plans last week to scrap the highest tax rate and lower the base rate to 19p per pound.

The announcement sent the pound higher, eventually dropping to an all-time low against the dollar.

Read:Renewables companies warn UK revenue cap could deter investment

“I think what they’ve done in the UK is crazy,” O’Leary said, speaking in Dublin.

“You can’t have a two-year power guarantee. It’s not expensive at all.

I think they could bankrupt the UK economy in the next couple of years.

“We (the Irish state) were there with the bank guarantee in 2007 and 2008, we can’t go back there again.”

Irish Deputy Prime Minister Leo Varadkar said he was not “unnecessarily concerned” about the move.

Obviously, we pay attention to what is happening around the corner. “It is our closest neighbor and one of the largest trading partners,” Varadkar added.

“Just like with the US or the eurozone, if one of our trading partners goes into a recession that has an impact on us.

Read:Tanker Market Could Find Respite from Restricted Tonnage Supply Moving Forward

So we’re looking closely at the situation in other countries, but I’m not unnecessarily worried at this point.

The Irish government on Tuesday unveiled its €11 billion budget plan for next year.

The cost-of-living budget was designed to help families pay their rising energy bills, and contained a number of welfare increases, tax cuts, and business grants.

O’Leary said the Irish government presented its budget “reasonably”.

I wouldn’t personally agree with some of the spending. As a father of four, I don’t need an extra child allowance.”

“But I think the government handled it sensibly.”

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