Michael O’Leary, CEO of Ryanair, has branded the economic plan proposed by the UK Government as “nuts”. He declared that the mini-budget could potentially bankrupt the UK in the coming years. Last week, a proposal was presented to scrap the top rate of tax and lower the basic rate to 19p in the pound, which sent the pound tumbling to an all-time low against the dollar.
“I think what they have done in the UK is nuts,” Mr O’Leary exclaimed in Dublin. “You can’t have an energy guarantee that runs for two years. It’s completely uncosted. I think they could bankrupt the UK economy in the next two years. We (Irish state) have been there with the bank guarantee back in 2007 and 2008, we can’t go back there again.”
In response, the Irish deputy premier Leo Varadkar said he is not “unduly concerned” about the move. He acknowledged that it is their nearest neighbour and largest trading partner and that if it goes into recession, Ireland will be affected. “So we are looking closely at the situation in other countries, but I am not unduly concerned at this stage,” he said.
On Tuesday, Ireland disclosed its 11 billion euro budget plan for the upcoming year. It is intended to assist households in paying their energy bills, and included welfare increases, tax cuts and business grants.
Mr O’Leary commented that the Irish Government handled their budget “sensibly. He stated, “I wouldn’t personally agree with some of the spending. As a father of four children I don’t need an additional children’s allowance. But I think the Government has pitched it sensibly.”
