Chemical Firms Controlled by Billionaire Jim Ratcliffe Received As Much As £70m in UK Government Support In the Past Four Years

Before this week's £50m government bailout for its Scottish plant, industrial firms under the ownership of billionaire Sir Jim Ratcliffe were already awarded up to £70m in UK state aid over the past four years.

Latest Revelations and Bailout Package

Based on government disclosures released recently, state aid to the Ineos group in the most recent year ranged from £16m and £38m. Since August 2022, the conglomerate has obtained between £28m and £70m.

The government stepped in this week to grant Ineos with £50m to prop up its Grangemouth operations, concerned that otherwise the UK would cease to have its sole facility producing ethylene—a critical feedstock for plastics. The government also backed a £75m loan guarantee, while Ineos pledged to invest £30m of its own funds.

Plant Closure and Broader Context

This intervention arrives after Ineos closed the neighbouring oil refinery in September 2024, costing 400 jobs—a move described as a significant setback to the area and a political problem for the government.

The billionaire, with an estimated net worth of $14.5bn, reportedly asked for government assistance in October. This appeal coincides with the wide-ranging Ineos group, under the control of the 73-year-old, has faced significant financial pressure, in part due to sharply increased energy costs in the wake of Russia's 2022 invasion of Ukraine.

In a sign of growing unease over its financial health, the credit rating agency downgraded Ineos's credit rating in September. Ratcliffe has also had to commit substantial resources into his off-road vehicle venture and the turnaround of Manchester United, in which he holds a minority stake.

Form of Support and Company Statements

Most the previous state aid came in the form of tax relief in exchange for “voluntary agreements to curb consumption and CO2 output.” The value of these tax breaks for Ineos's sites in Grangemouth and Hull were given as estimates rather than precise figures.

An Ineos spokesperson stated the aid did not represent “special treatment” for the company, but was “granted based on strict criteria, and available to any UK business that meets the requirements.”

While Ratcliffe publicly welcomed the £50m support in an official statement, Ineos separately issued more critical comments. In these, the industrialist strongly criticised government policy, including carbon taxes levied on industrial users.

“The answer is NOT decarbonisation by deindustrialisation,” he stated. “Without a strong manufacturing base, the economy will continue to decline. High energy costs and punitive carbon charges are pushing industry out of the UK at an unsustainable pace.”

Speaking elsewhere, Ratcliffe described carbon taxes as “an extremely foolish levy in the world,” contending they put UK plants at a competitive disadvantage against foreign rivals. Currently, most chemicals and plastics are excluded from the UK's planned carbon border adjustment mechanism.

Future 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 efficient chemical plants in Europe and to safeguard skilled jobs. British industry has had a brutal year, yet society depends on this industry every day. If we don't produce these critical products in the UK, they are imported instead, often from higher-carbon production abroad.”

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

He explained 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, worth hundreds of millions of euros—notably while Ratcliffe was a prominent backer of the campaign for the UK to exit the European Union.