Chemical Companies Controlled by Tycoon Sir Jim Ratcliffe Obtained As Much As £70m in British Government Support In the Last Four-Year Period

Prior to this week's £50m state rescue package for its Grangemouth facility, chemical companies controlled by tycoon Sir Jim Ratcliffe had already been granted as much as £70m in British government support during the previous four-year period.

Latest Disclosures and Financial Support

According to government disclosures released this week, state aid to the Ineos group in the most recent year was between £16m and £38m. Since August 2022, the conglomerate has received between £28m and £70m.

Authorities intervened this week to grant Ineos with £50m to support its Scottish ethylene plant, fearing that without it the UK would lose its last remaining facility producing ethylene—a critical feedstock for plastics. The government also backed a £75m credit guarantee, while Ineos committed to invest £30m of its own funds.

Refinery Shutdown and Wider Challenges

This intervention arrives after Ineos shut down the neighbouring oil refinery in late 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.

The billionaire, with an estimated net worth of $14.5bn, reportedly requested government help in October. This appeal comes at a time when the expansive Ineos group, under the control of the 73-year-old, has faced considerable economic strain, partly due to soaring energy costs following Russia's full-scale invasion of Ukraine.

In a sign of growing unease over its ability to manage debt, Fitch Ratings lowered Ineos's credit rating in September. Ratcliffe has also been required to invest significant funds into his Ineos Grenadier automotive project and the turnaround of Manchester United, in which he holds a partial ownership.

Nature of Aid and Company Statements

Most the previous state aid came in the form of tax breaks in return for “voluntary agreements to curb consumption and CO2 output.” Figures for these relief schemes for Ineos's plants 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 qualifies.”

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

“The answer is NOT decarbonisation by deindustrialisation,” he stated. “Without a strong manufacturing base, the economy will falter. High energy costs and burdensome carbon levies are driving industry out of the UK at an alarming rate.”

Speaking elsewhere, Ratcliffe labelled carbon taxes as “the most idiotic tax in the world,” contending they place UK plants at a disadvantage against international competitors. It is noted that most chemicals and plastics are not covered from the UK's initial carbon border adjustment mechanism.

Future Environmental Pledges

The Ineos spokesperson added: “Ineos has invested over £400m at Grangemouth in the last five years to maintain its status as one of the most productive chemical plants in Europe and to safeguard skilled jobs. British industry has had a brutal year, yet society depends on this industry every day. Should we fail to manufacture these critical products in the UK, they are brought in from overseas, often from higher-carbon production abroad.”

Colin Pritchard, head of sustainability for the company's chemicals unit, indicated the new funding would be used to improve energy efficiency, cut carbon emissions, and boost overall performance.

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

Records show that Ineos has in the past obtained substantial tax breaks from the EU, worth hundreds of millions of euros—notably while Ratcliffe was a leading supporter of the campaign for the UK to leave the EU.