Chemical Firms Owned by Tycoon Sir Jim Ratcliffe Received As Much As £70m in UK State Aid In the Last Four-Year Period

Before the recent £50m government bailout for its Grangemouth facility, chemical companies under the ownership of tycoon Jim Ratcliffe were already awarded up to £70m in British government support during the previous four-year period.

Recent Revelations and Bailout Package

Based on official data published recently, public funding to the Ineos group in the last year alone ranged from £16m and £38m. Since August 2022, the company has received a total of £28m and £70m.

Authorities intervened on Tuesday to grant Ineos with £50m to support its Grangemouth operations, concerned that otherwise the UK would lose its last remaining facility manufacturing ethylene—a vital raw material for plastics. Officials additionally supported a £75m loan guarantee, while Ineos committed to invest £30m of its own funds.

Plant Closure and Wider Challenges

This intervention comes following Ineos closed the adjacent oil refinery in September 2024, resulting in the loss of 400 jobs—a move described as a significant setback to the area and a challenge 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 expansive Ineos group, under the control of the 73-year-old, has faced considerable economic strain, partly due to soaring 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 lowered Ineos's credit rating in September. Ratcliffe has also been required to invest substantial resources into his Ineos Grenadier automotive project and efforts to revitalise the football club, in which he holds a partial ownership.

Nature of Aid and Company Statements

The majority of the earlier government support came in the form of tax relief in return for “voluntary agreements to curb consumption and CO2 output.” Figures for these relief schemes for Ineos's sites in Grangemouth and Hull were given as estimates rather than exact amounts.

An Ineos spokesperson said the aid did not constitute “favourable terms” for the company, but was “awarded against strict criteria, and available to any UK business that qualifies.”

While Ratcliffe thanked the government for the £50m support in an official statement, Ineos also released more critical comments. In these, the industrialist strongly criticised government policy, specifically carbon taxes levied on industrial users.

“The answer is NOT decarbonisation by deindustrialisation,” he stated. “Lacking a robust manufacturing base, the economy will falter. High energy costs and burdensome carbon levies are pushing industry out of the UK at an alarming rate.”

In further comments, Ratcliffe described carbon taxes as “the most idiotic tax in the world,” arguing they put UK plants at a disadvantage against international competitors. It is noted that most chemicals and plastics are excluded from the UK's initial carbon import tax.

Future Sustainability Claims

The Ineos representative added: “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 protect skilled jobs. British industry has had a very difficult 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 Olefins & Polymers division, said the Grangemouth money would be used to improve energy efficiency, cut carbon emissions, and boost overall performance.

He explained the site, which uses an ethylene cracker 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.

It has also been reported 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 leave the EU.