Tycoon James Dyson fears Britain is being hampered by ‘short-sighted’ polices that discourage growth

Billionaire James Dyson today launched a brutal attack on ‘short-sighted’ and ‘stupid’ red tape and high taxes in the UK.

The tycoon said Britain was stuck in a state of ‘Covid inertia’ that was holding the economy back.

Sir James, who backed Brexit and has an estimated net worth of £23billion, accused the Tory government of ‘interfering’ and ‘penalising the private sector’.

He also complained that the failure to get workers back to the office after the pandemic has ‘badly damaged the country’s self-belief and work ethic’. 

The comments come amid rising pressure from ministers and Conservative MPs for Rishi Sunak and Jeremy Hunt to bring in tax cuts.

The PM and Chancellor have scrambled to bring in revenue, insisting their priority is to stabilise the government finances in the wake of the disastrous Liz Truss meltdown.

However, there is disquiet after the Treasury made clear there is no prospect of tax cuts at the Budget in March.

MailOnline understands there is instead a Cabinet push for Mr Hunt to ease the eye-watering burden on Brits by the Autumn, with fears it could be the only ‘narrow path’ to the Tories winning the next election. 

Billionaire James Dyson (left) today launched a brutal attack on ‘short-sighted’ and ‘stupid’ red tape and high taxes in the UK.  The comments come amid rising pressure from ministers and Conservative MPs for Rishi Sunak and Jeremy Hunt (right) to bring in tax cuts

Writing in The Daily Telegraph, Sir James also called on Chancellor Jeremy Hunt to use the spring budget to ‘incentivise private innovation and demonstrate its ambition for growth’.

‘The Government seems intent on moving in the opposite direction with the introduction of suffocating regulation, greater interference with business, and thinking it can impose tax upon tax on companies in the belief that penalising the private sector is a free win at the ballot box.’ 

Sir James warned: ‘This is as short-sighted as it is stupid. In the global economy, companies will simply choose to transfer jobs and invest elsewhere. 

‘Our country has an illustrious history of enterprise and innovation, born of a culture which we are in the process of extinguishing.’ 

The negative assessment came despite glimmers of hope that inflation could be easing. 

Figures yesterday showed the headline CPI finally nudging down from 40-year highs, with the rate 10.5 per cent in the year to December.

GDP data has also been holding up marginally better than analysts had expected, with the UK potentially avoiding a technical recession in the last quarter of 2022. 

Tories believe the government should have a bit more room for manoeuvre after energy costs dropped, reducing the liabilities for the household bill subsidies.

One senior minister told MailOnline that Rishi Sunak and Mr Hunt would take the decision, but a likely election in the second half of next year should focus minds. Tax cuts could help boost Rishi Sunak’s position and morale in the crunch final year of the parliament.

The minister said there were ‘some grounds for hope with the economic data looking slightly better’.

Inflation dropped slightly in December after spiralling to a 40-year high in October 

GDP data has also been holding up marginally better than analysts had expected, potentially avoiding a technical recession in the last quarter of 2022

‘Bills are starting to ease, inflation might be coming down,’ they said.

‘If we can make some savings on things like the energy bills scheme, if the economy is stronger because we’ve stabilised the government, we might be able to return to the issue of tax cuts soon.’

They added: ‘It’s a narrow path. We need a better economy, persuade people to trust us with the NHS. We might need to get lucky with Ukraine, and hope Starmer makes mistakes.

‘But it is all about momentum. If we go into 2024 putting some money back into people’s pockets then it will be all to play for.’

A Treasury source insisted that tackling inflation was the ‘priority’ for Mr Hunt.

‘We want low taxes and sound money. But sound money has to come first because inflation eats away at the pound in people’s pockets even more insidiously than taxes,’ they said.

However, they acknowledged that the Bank of England is anticipating the PM’s goal of halving inflation could be reached by the final quarter of the year.