INEOS has delivered a stinging verdict on the UK Autumn Budget 2026, accusing the Government of failing to save British manufacturing and warning that its policies risk accelerating the country's industrial decline.
The company said the Chancellor had missed a critical opportunity to tackle soaring energy costs, punitive taxation and the mounting pressure on Britain's industrial base, leaving manufacturers increasingly unable to compete with overseas rivals.
"Today's Budget is a major missed opportunity to save British manufacturing. The Government knows that Britain's industrial base is being destroyed by some of the highest energy costs in the world, yet it has failed to take the decisive action needed to stop it."
INEOS said the Government's move to reduce electricity costs was welcome but insufficient to address the scale of the crisis facing Britain's chemicals industry. Manufacturers, it argued, continue to be crippled by high gas prices and carbon taxes that competitors in other countries do not face.
The consequences are already being felt, with factories closing, thousands of skilled jobs disappearing and investment shifting overseas.
"This is not a warning about what might happen. It is happening now."
The company also welcomed the Government's approval of the Jackdaw gas field but challenged ministers over their continued position on the Rosebank development, arguing that domestic oil and gas production remains vital to Britain's economic and energy security.
"The approval of Jackdaw is very welcome and a victory for common sense. But what about Rosebank? Britain will need oil and gas for decades. Producing our own resources rather than importing them from overseas is better for British jobs, investment, tax revenues and energy security."
However, INEOS warned that approving new developments would achieve little unless the Government urgently reforms what it described as a punitive 78% tax regime on North Sea production.
It said the current Energy Profits Levy was undermining investment and putting a potential £50 billion boost to the British energy sector at risk.
"But approving new fields is pointless if a punitive 78% tax regime prevents companies investing in them. There is an opportunity to unlock £50 billion of investment in British energy. The Government must urgently bring forward the replacement of the Energy Profits Levy and create the conditions for investment in the North Sea."
INEOS also accused the Government of creating an uneven playing field by penalising domestic energy producers and manufacturers while allowing imports from countries operating under weaker environmental standards to gain ground in the UK market.
"It is economic madness to penalise British energy production and burden our manufacturers with excessive costs while allowing imports from countries with lower environmental standards to take their place."
In its strongest criticism of the Budget, the company said the Chancellor had failed to confront the structural problems undermining British industry, warning that the consequences would extend far beyond the energy sector.
"The Chancellor had an opportunity today to reverse Britain's industrial decline. Instead, this Budget risks accelerating it. Britain needs to back its own energy resources and its own industries, not imports. Otherwise, we will continue to lose factories, investment and skilled jobs that will never come back."
