Chemical Companies Controlled by Billionaire Jim Ratcliffe Received As Much As £70m in British Government Support Over the Last Four-Year Period
Before the recent £50m state rescue package for its Scottish plant, chemical companies under the ownership of tycoon Sir Jim Ratcliffe were already awarded as much as £70m in British government support during the previous four-year period.
Recent Disclosures and Bailout Package
Based on government disclosures published recently, state aid to the Ineos group in the last year alone ranged from £16m and £38m. Since August 2022, the company has received a total of £28m and £70m.
Authorities intervened on Tuesday to grant Ineos with £50m to support its Grangemouth operations, concerned that otherwise the UK would lose its last remaining facility producing ethylene—a critical feedstock for plastics. The government also backed a £75m loan guarantee, while Ineos pledged to invest £30m of its private capital.
Plant Closure and Broader Context
This support comes following Ineos shut down the adjacent oil refinery in late 2024, resulting in the loss of 400 jobs—a move described as a huge blow to the local community and a political problem for the government.
Ratcliffe, who is worth $14.5bn, is understood to have asked for government help in October. This appeal coincides with the wide-ranging Ineos group, under the control of the 73-year-old, has been under considerable economic strain, partly due to soaring energy costs following Russia's full-scale invasion of Ukraine.
In a sign of increasing concern over its ability to manage debt, the credit rating agency lowered Ineos's debt rating in September. Ratcliffe has also had to commit significant funds into his Ineos Grenadier automotive project and efforts to revitalise Manchester United, in which he holds a partial ownership.
Form of Support and Company Statements
Most the previous state aid was delivered in the form of tax relief in exchange for “commitments to reduce energy use and carbon dioxide emissions.” The value of these tax breaks for Ineos's sites in Grangemouth and Hull are reported as ranges rather than exact amounts.
An Ineos spokesperson said the aid did not constitute “favourable terms” for the company, but was “granted based on strict criteria, and available to any UK business that meets the requirements.”
While Ratcliffe thanked the government for the £50m support in an announcement, Ineos also released sharper remarks. In these, the industrialist launched a broadside against government policy, including carbon taxes paid by industrial users.
“The solution is not decarbonisation by deindustrialisation,” he stated. “Without a strong manufacturing base, the economy will continue to decline. Soaring power prices and burdensome carbon levies are pushing industry out of the UK at an unsustainable pace.”
In further comments, Ratcliffe labelled carbon taxes as “the most idiotic tax in the world,” contending they place 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 border adjustment mechanism.
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 productive chemical plants in Europe and to protect skilled jobs. British industry has had a brutal year, yet society depends on this industry every day. If we don't produce these essential materials in the UK, they are brought in from overseas, often from more polluting operations abroad.”
Colin Pritchard, head of sustainability for the company's Olefins & Polymers division, said the new funding would be used to enhance energy efficiency, cut carbon emissions, and boost plant performance.
He noted the site, which uses an ethylene cracker utilising North Sea gas and imported liquefied petroleum gas, had been under “intense strain” from surging energy costs and the UK's carbon taxes.
It has also been reported that Ineos has in the past obtained significant tax breaks from the EU, valued at hundreds of millions of euros—notably while Ratcliffe was a prominent backer of the campaign for the UK to exit the European Union.
