Chemical Companies Controlled by Tycoon Jim Ratcliffe Received As Much As £70m in British State Aid In the Past Four Years
Prior to the recent £50m government bailout for its Grangemouth facility, industrial firms controlled by tycoon Sir Jim Ratcliffe were already awarded as much as £70m in UK state aid over the past four years.
Latest Disclosures and Bailout Package
According to government disclosures released this week, public funding to the Ineos group in the last year alone ranged from £16m and £38m. From August 2022 onwards, the conglomerate has obtained between £28m and £70m.
The government stepped in on Tuesday to provide Ineos with £50m to support its Scottish ethylene plant, fearing that otherwise the UK would cease to have its last remaining facility producing ethylene—a vital 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 intervention arrives after Ineos closed 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 challenge for the government.
The billionaire, with an estimated net worth of $14.5bn, is understood to have requested government help in October. The request coincides with the wide-ranging Ineos group, controlled by the 73-year-old, has been under considerable economic strain, in part due to soaring energy costs following Russia's 2022 invasion of Ukraine.
In a sign of growing unease over its ability to manage debt, Fitch Ratings lowered Ineos's debt rating in September. Ratcliffe has also had to commit substantial resources into his off-road vehicle venture and the turnaround of the football club, in which he holds a partial ownership.
Form of Support and Official Responses
The majority of the earlier government support was delivered in the form of tax breaks in exchange for “commitments to reduce energy use and CO2 output.” Figures for these relief schemes for Ineos's plants in Grangemouth and Hull are reported as ranges rather than precise figures.
An Ineos spokesperson stated the aid did not constitute “special treatment” for the company, but was “granted based on strict criteria, and open to any UK business that qualifies.”
While Ratcliffe publicly welcomed the £50m support in an announcement, Ineos also released more critical comments. In these, the billionaire strongly criticised government policy, including carbon taxes levied on industrial users.
“The solution is not decarbonisation by deindustrialisation,” Ratcliffe wrote. “Lacking a robust manufacturing base, the economy will continue to decline. Soaring power prices and burdensome carbon levies are pushing industry out of the UK at an alarming rate.”
In further comments, Ratcliffe labelled carbon taxes as “the most idiotic tax in the world,” arguing 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 maintain its status as one of the most productive chemical plants in Europe and to protect skilled jobs. The UK chemicals sector has had a very difficult year, yet society depends 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.”
Colin Pritchard, head of sustainability for the company's Olefins & Polymers division, indicated the new funding would be used to enhance energy efficiency, cut carbon emissions, and upgrade 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 previously received 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 leave the EU.
