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

Before the recent £50m government bailout for its Scottish plant, industrial firms under the ownership of billionaire Jim Ratcliffe had already been granted up to £70m in UK state aid during the previous four-year period.

Latest Revelations and Financial Support

Based on official data published recently, state aid to the Ineos group in the most recent year ranged from £16m and £38m. From August 2022 onwards, the company has obtained a total of £28m and £70m.

The government stepped in on Tuesday to provide Ineos with £50m to prop up its Grangemouth operations, fearing that without it the UK would cease to have its sole facility producing ethylene—a vital raw material for plastics. The government also backed a £75m credit guarantee, while Ineos committed to invest £30m of its private capital.

Refinery Shutdown and Wider Challenges

This support comes 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 political problem for the government.

The billionaire, with an estimated net worth of $14.5bn, is understood to have asked for government assistance in October. The request comes at a time when the wide-ranging Ineos group, controlled by the 73-year-old, has faced significant financial pressure, in part due to sharply increased energy costs following Russia's 2022 invasion of Ukraine.

In a sign of increasing concern over its financial health, Fitch Ratings lowered Ineos's debt rating in September. Ratcliffe has also had to commit significant funds into his Ineos Grenadier automotive project and the turnaround of the football club, in which he holds a partial ownership.

Nature of Aid and Company Statements

The majority of the previous state aid was delivered in the form of tax relief in return for “commitments to reduce energy use and CO2 output.” The value of these relief schemes for Ineos's sites in Grangemouth and Hull were given as estimates rather than exact amounts.

An Ineos representative said the aid did not represent “favourable terms” for the company, but was “granted based on strict criteria, and open to any UK business that qualifies.”

While Ratcliffe thanked the government for the £50m support in an announcement, Ineos also released sharper remarks. In these, the industrialist strongly criticised government policy, including 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 burdensome carbon levies are pushing industry out of the UK at an alarming rate.”

In further comments, Ratcliffe described carbon taxes as “an extremely foolish levy in the world,” arguing they put UK plants at a competitive 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. British industry 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.”

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

He explained the site, which uses an processing unit running on North Sea gas and US-sourced liquefied petroleum gas, had been under “extreme pressure” 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, worth hundreds of millions of euros—interestingly while Ratcliffe was a prominent backer of the campaign for the UK to leave the EU.