Chemical Companies Owned by Billionaire Sir Jim Ratcliffe Obtained Up to £70m in British Government Support In the Past Four Years

Prior to the recent £50m state rescue package for its Grangemouth facility, industrial firms under the ownership of tycoon Jim Ratcliffe had already been granted up to £70m in UK state aid over the past four years.

Latest Revelations and Bailout Package

Based on official data published recently, public funding to the Ineos group in the most recent year was between £16m and £38m. Since August 2022, the conglomerate has received a total of £28m and £70m.

Authorities intervened on Tuesday to provide Ineos with £50m to support its Scottish ethylene plant, concerned that otherwise the UK would cease to have its sole facility manufacturing ethylene—a vital raw material for plastics. Officials additionally supported a £75m loan guarantee, while Ineos pledged to invest £30m of its own funds.

Refinery Shutdown and Wider Challenges

This support arrives after Ineos closed the neighbouring oil refinery in September 2024, resulting in the loss of 400 jobs—a move described as a huge blow to the area and a political problem for the government.

Ratcliffe, who is worth $14.5bn, is understood to have requested government assistance in October. The request comes at a time when the expansive Ineos group, controlled by the 73-year-old, has been under significant financial pressure, in part due to soaring energy costs in the wake of Russia's full-scale invasion of Ukraine.

Reflecting growing unease over its ability to manage debt, the credit rating agency downgraded Ineos's debt rating in September. Ratcliffe has also been required to invest substantial resources into his off-road vehicle venture and efforts to revitalise the football club, in which he holds a minority stake.

Nature of Aid and Official Responses

Most the earlier government support came in the form of tax relief in return for “voluntary agreements to curb consumption and CO2 output.” Figures for these relief schemes for Ineos's sites in Grangemouth and Hull are reported as ranges rather than exact amounts.

An Ineos representative stated the aid did not represent “favourable terms” for the company, but was “awarded against strict criteria, and open to any UK business that meets the requirements.”

Although Ratcliffe publicly welcomed the £50m support in an official statement, Ineos also released more critical comments. In these, the industrialist launched a broadside against government policy, specifically carbon taxes levied on industrial users.

“The solution is not decarbonisation by deindustrialisation,” Ratcliffe wrote. “Without a strong manufacturing base, the economy will continue to decline. Soaring power prices and punitive carbon charges are driving industry out of the UK at an alarming rate.”

In further comments, Ratcliffe labelled carbon taxes as “an extremely foolish levy in the world,” contending they put UK plants at a disadvantage against foreign rivals. It is noted that most chemicals and plastics are not covered from the UK's initial carbon import tax.

Investment and Sustainability Claims

The Ineos representative further stated: “Ineos has invested over £400m at Grangemouth in the last five years to keep it as one of the most efficient chemical plants in Europe and to safeguard skilled jobs. The UK chemicals sector has had a very difficult year, yet everyone relies on this industry every day. Should we fail to manufacture these essential materials in the UK, they are imported instead, often from more polluting operations abroad.”

A senior Ineos executive, head of sustainability for the company's Olefins & Polymers division, indicated the Grangemouth money would be used to improve energy efficiency, cut carbon emissions, and boost overall performance.

He explained the site, which uses an processing unit utilising North Sea gas and imported liquefied petroleum gas, had been under “intense strain” from rocketing energy costs and the UK's carbon taxes.

It has also been reported that Ineos has previously received substantial tax breaks from the EU, valued at hundreds of millions of euros—notably while Ratcliffe was a leading supporter of the campaign for the UK to leave the EU.