Coronavirus UK: Duncan Bannatyne blasts Richard Branson

Duncan Bannatyne has blasted Sir Richard Branson for seeking a £500m taxpayer bailout to save Virgin Atlantic from collapse.

The Dragon’s Den star said the billionaire Virgin Group boss should instead go to a bank for help during a row with his followers on Twitter. 

And he also hit out at Branson’s offer to mortgage Necker Island, his home in the Caribbean, as collateral to help get cash to ‘save as many jobs as possible.’

In an open letter to staff he said he was not asking for a handout, but a commercial loan, believed to be £500m, and came after Virgin Australia went into administration.

But Branson was slammed for appealing for taxpayer aid to help stricken Virgin Atlantic, rather than using his £4billion fortune.

Scottish entrepreneur Mr Bannatyne, who said he had supported his leisure business during the pandemic with increased bank loans, said in a tweet to a follower: ‘Do you think the island is worth £500m?

He continued: ‘I have gone to the bank NOT the UK tax payer. The bank. A viable business will get the money from a bank.

‘I never slated him (Sir Richard) I said he should go to the bank for a loan not the hard working UK taxpayers that you show so little respect for.’

In another tweet he added: ‘But tell me, why can’t he borrow the money from a bank?

‘In every company in the world the staff pay their taxes. So you are saying government should financially support every company that is in trouble? ‘

Sir Richard has also addressed the fierce criticism he has faced in recent weeks over his tax situation.

Critics have pointed out that Sir Richard has paid no UK income tax since moving to the tax-free British Virgin Islands 14 years ago.

In the open letter to staff at Virgin Atlantic he said: ‘Many airlines around the world need government support and many have already received it.’

He said the crisis facing airlines is ‘unprecedented.

He also said despite his wealth, this did not mean he had ‘cash in a bank account ready to withdraw’. 

Hitting back at criticism that he was a tax exile who did not deserve help, saying he and his wife ‘did not leave Britain for tax reasons but for our love of the beautiful British Virgin Islands and in particular Necker Island’.

He said Necker would be offered as security for any loans. 

He added: ‘As with other Virgin assets, our team will raise as much money against the island as possible to save as many jobs as possible around the group,’ Sir Richard said.

Sir Richard is the 312th richest person in the world with an estimated $5.2bn fortune, according to the Bloomberg billionaires index. 

Clydebank-born Mr Bannatyne recently told Sky News the coronavirus crisis could cost his business £30 million. 

He had been backed by the Royal Bank of Scotland. About 2600 of his employees were put on furlough in March with 400 still working then. 

On Monday Virgin Australia went into voluntary administration after failing to secure a government bailout due to impacts of the pandemic.

‘Virgin Australia has entered voluntary administration to recapitalise the business and help ensure it emerges in a stronger financial position on the other side of the Covid-19 crisis,’ the airline said in a statement to the Australian Stock Exchange.

The move follows a board meeting of the firm’s international shareholders who voted against providing more financial support.

The airline had asked the Australian government for £710 million but the request was denied.

Virgin Australia’s board has appointed Deloitte has voluntary administrators.

The airline, which serviced domestic as well as short-haul international destinations, was founded in 2000 by Sir Richard Branson and was one of Australia’s main aviation providers.

In a letter to the airline’s staff, which he tweeted, Sir Richard said it ‘is not the end for Virgin Australia, but I believe a new beginning’.

He said: ‘Never one to give up, I want to assure all of you – and our competitor – that we are determined to see Virgin Australia back up and running soon.

‘We will work with Virgin Australia’s administrators and management team, with investors and with government to make this happen and create a stronger business ready to provide even more value customers, competition to the market, stimulus to the economy and jobs for our wonderful people.

‘Virgin Australia has captured the hearts of all Australians. That is down to all of you – past and present – who made it the best airline to fly within Australia.’

Sir Richard owns around 10% of the company, which is also owned in part by Etihad Airways and Singapore Airlines.