Jeremy Hunt reportedly told billionaire James Dyson that he should run for parliament if he thinks he could do a better job than the Government.
It is claimed the outburst came during a “fiery” showdown between the pair, set up to discuss research and development tax relief.
One source told the Financial Times: “It was an awful meeting.”
They revealed Mr Hunt blasted: “If you think you could do a better job, why don’t you just stand for election?”
Sir James has been a frequent critic of the Government’s, though did back Brexit in the 2016 referendum.
In a letter to The Times last year, Sir James slammed ministers for talking “hubristically” about making Britain a science and tech “superpower” while implementing “woeful policies” that undermine that ambition.
Despite being a British success story, the vacuum entrepreneur has moved his company headquarters to Singapore, warning that the rival economy is “investing far more in modern, forward-looking economies elsewhere in the world that encourage growth and innovation rather than deter them”.
He has also condemned Britain’s “rocketing corporation tax”, “damaging legislation on working from home” and a “crippling shortage of qualified engineers”.
According to one Government insider, Sir James doesn’t shy away from telling the Government about his economic views.
The source said: “He keeps sending quite aggressive letters. He’s quite forthright in his views, both publicly and privately”.
Sir James has also criticised Rishi Sunak personally, accusing him of refusing to meet with businessmen like him and presiding over a “scandalous neglect” of science and tech sectors.
Mr Sunak has promised to make Britain a science and innovation world leader by 2030, with Jeremy Hunt often promoting the UK as the next Silicon Valley.
While the Treasury didn’t deny the reports, refusing to comment on a private meeting, an insider disputed the claim that the meeting had been “fiery”.
They insisted it had instead been a “good, robust discussion”.
In January last year Sir James blasted the “short-sighted” and “stupid” economic approach of Rishi Sunak’s Government, warning it was keeping Britain in a state of “Covid inertia”.
He also defended the policies of Kwasi Kwarteng and Liz Truss, saying he had been hopeful about their time in power and “thought they were doing the right thing”.
He conceded he was “the only one who did”.
“Kwarteng wasn’t raising taxes. He was going for growth, which I think is the right thing. It allows us to pay for things and generates wealth,”
Sir James accused Mr Sunak of “not going for growth”.
