Labour Party chair Bridget Phillipson has challenged billionaire businessman Sir Jim Ratcliffe after the Manchester United co-owner said he had "no confidence" in Britain and claimed the country was "on the slide".
Speaking to the BBC's Sunday with Laura Kuenssberg, Phillipson said Ratcliffe's criticism should be treated cautiously given his decision to become a tax resident in Monaco.
She said:
You'll forgive me if I do take with a pinch of salt what someone who is a tax exile has to say about our country.
Phillipson added that while Ratcliffe was entitled to make his own decisions about where he lived and paid tax, she believed that weakened his position when criticising Britain.
I do think you lose the moral high ground in the argument you make… by making these kinds of pronouncements while choosing to make decisions that he is within his rights to make to become a tax exile.
Ratcliffe says he has 'no confidence' in UK
Ratcliffe, the founder of chemicals group Ineos, criticised Britain's economic direction in a BBC interview, raising concerns about tax, immigration and welfare spending.
He said Britain had a "green eye towards wealth" and argued that the country was encouraging wealthy people to leave. Ratcliffe said he would consider returning to Britain only if "things would have to get better".
He has been a tax resident in Monaco since 2020, having left the UK in 2018.
Phillipson: 'I am optimistic about our country'
Phillipson rejected Ratcliffe's wider assessment of Britain.
She acknowledged that the Government faces significant international and economic pressures but said she remained confident about the country's prospects.
I am optimistic about our country's prospects.
She added that Labour was going into the forthcoming Budget from a stronger position because of decisions taken by the Government over the previous two years and said she believed "our country's best days lie ahead of us".
Labour figures push back against Ratcliffe
Phillipson's intervention follows criticism of Ratcliffe from Treasury minister Torsten Bell, who accused parts of the political right of having a "patriotism problem".
Bell pointed to Ratcliffe's tax status, his past support for Brexit and his criticism of the state of British manufacturing.
The exchanges have opened a wider debate over how political and business leaders talk about Britain's economic prospects at a time when the Government is seeking to increase investment and reindustrialise the country.
Government points to business investment
Labour ministers have sought to counter claims of national decline by highlighting recent private-sector investment, including McLaren Automotive's £500 million expansion programme and wider efforts to support British manufacturing.
Phillipson said the Government wanted a successful economy and recognised the importance of supporting businesses to invest and grow.
Her argument, however, was that those debates should also take account of the responsibilities of wealthy individuals who choose to move their tax affairs overseas.
The clash highlights an emerging dividing line in the economic debate: Ratcliffe argues Britain is becoming less attractive to wealth and investment, while Phillipson insists the country retains strong prospects and says criticism from a billionaire living as a tax exile should be viewed in that context.
