Chemical Companies Controlled by Tycoon Sir Jim Ratcliffe Received As Much As £70m in UK State Aid In the Last Four-Year Period
Before this week's £50m government bailout for its Scottish plant, chemical companies under the ownership of billionaire Sir Jim Ratcliffe were already awarded as much as £70m in British government support over the past four years.
Latest Revelations and Financial Support
According to official data published recently, public funding to the Ineos group in the most recent year ranged from £16m and £38m. From August 2022 onwards, the company has received between £28m and £70m.
The government stepped in on Tuesday to provide Ineos with £50m to prop up its Grangemouth operations, concerned that without it the UK would lose its last remaining facility manufacturing ethylene—a vital feedstock for plastics. Officials additionally supported a £75m loan guarantee, while Ineos committed to invest £30m of its private capital.
Plant Closure and Broader Context
This intervention arrives following Ineos shut down the adjacent oil refinery in September 2024, costing 400 jobs—a move described as a significant setback to the area and a challenge for the government.
Ratcliffe, who is worth $14.5bn, reportedly requested government help in October. This appeal coincides with the wide-ranging Ineos group, controlled by the 73-year-old, has faced significant financial pressure, 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, the credit rating agency downgraded Ineos's debt rating in September. Ratcliffe has also been required to invest substantial resources into his off-road vehicle venture and efforts to revitalise the football club, in which he holds a minority stake.
Nature of Aid and Company Statements
The majority of the earlier government support came in the form of tax breaks in exchange for “voluntary agreements to curb consumption and carbon dioxide emissions.” The value of 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 “favourable terms” for the company, but was “awarded against strict criteria, and open 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 billionaire strongly criticised government policy, including carbon taxes paid by industrial users.
“The answer is NOT decarbonisation by deindustrialisation,” Ratcliffe wrote. “Without a strong manufacturing base, the economy will continue to decline. High energy costs and punitive carbon charges are driving 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. It is noted that most chemicals and plastics are not covered from the UK's planned carbon border adjustment mechanism.
Investment and Sustainability Claims
The Ineos spokesperson added: “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 critical products in the UK, they are brought in from overseas, often from more polluting operations abroad.”
A senior Ineos executive, head of sustainability for the company's chemicals unit, indicated the Grangemouth money would be used to enhance energy efficiency, reduce carbon emissions, and boost plant 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—interestingly while Ratcliffe was a prominent backer of the campaign for the UK to exit the European Union.
