Ryanair chief executive Michael O’Leary has launched a scathing attack on Rachel Reeves’ economic strategy, claiming the Chancellor of having no idea how to promote growth and that the UK economy is “doomed to fail” without tax reductions. Mr O’Leary made the caustic comments in a Sky News interview after the announcement of the budget airline’s annual results, which showed profits of £1.68billion (€1.92billion) and 153.7 million passengers carried in the year to March 2025.
Mr O’Leary called for the removal of air passenger duty (APD) on flights from non-London airports in the upcoming Budget on November 26 and said this would support tourism growth and generate revenue through higher spending. He added: “When she got elected 12 months ago and we wrote to her calling on her to abolish APD… if not at London airports which are full, but all non-London airports, there’s enormous growth available in airports like Manchester, Liverpool, Birmingham, Glasgow, Edinburgh.”
Mr O’Leary said: “You know, we support growth, but Rachel Reeves hasn’t a rasher’s how to deliver growth,” using Irish slang meaning she has no clue.
He added: “And until she starts recutting these insane taxes and stop trying to tax wealth, the UK economy is doomed to continue to fail.”
The interview took place as the government prepares its first Budget under Labour, with planned increases in employer National Insurance contributing to concerns among businesses about employment and investment.
The UK recorded growth of 0.6% in the first half of 2025, the strongest among G7 countries.
Mr O’Leary acknowledged aviation’s contribution to the economy, noting it supports £22 billion in annual tourism spending, but said taxes are limiting its potential.
Mr O’Leary suggested economic pressures could benefit Ryanair.
Mr O’Leary said: “As people get more price-sensitive, more and more of them will fly Ryanair.” The company’s shares fell 2% after the results, though Mr O’Leary projected 200 million passengers by 2030.
Inflation stood at 2.3% in October, with rising borrowing costs adding pressure on public finances. Mr O’Leary’s remarks highlight tensions between the government’s fiscal plans and business calls for lower taxes to support recovery.