Industrial Firms Owned by Tycoon Sir Jim Ratcliffe Received Up to £70m in British State Aid Over the Past Four Years

Prior to the recent £50m state rescue package for its Scottish plant, chemical companies controlled by tycoon Sir Jim Ratcliffe were already awarded up to £70m in British government support over the past four years.

Latest Revelations and Bailout Package

Based on government disclosures published this week, state aid to the Ineos group in the most recent year ranged from £16m and £38m. Since August 2022, the company has received a total of £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 producing ethylene—a critical 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 arrives after Ineos closed the adjacent oil refinery in late 2024, costing 400 jobs—a move described as a significant setback to the local community 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. This appeal coincides with the expansive Ineos group, controlled by the 73-year-old, has faced significant financial pressure, in part due to soaring energy costs following Russia's full-scale invasion of Ukraine.

In a sign of growing unease over its financial health, the credit rating agency lowered Ineos's debt rating in September. Ratcliffe has also been required to invest significant funds into his off-road vehicle venture and efforts to revitalise the football club, in which he holds a partial ownership.

Form of Support and Official Responses

Most the previous state aid came in the form of tax relief in exchange for “voluntary agreements to reduce energy use and carbon dioxide emissions.” The value of these relief schemes for Ineos's plants in Grangemouth and Hull were given as estimates rather than precise figures.

An Ineos representative said the aid did not constitute “special treatment” for the company, but was “awarded against strict criteria, and open to any UK business that qualifies.”

While Ratcliffe publicly welcomed the £50m support in an official statement, Ineos separately issued sharper remarks. 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 continue to decline. Soaring power prices and burdensome carbon levies are driving industry out of the UK at an unsustainable pace.”

Speaking elsewhere, Ratcliffe labelled carbon taxes as “an extremely foolish levy in the world,” contending they put UK plants at a disadvantage against international competitors. Currently, most chemicals and plastics are not covered from the UK's planned carbon border adjustment mechanism.

Investment and Sustainability Claims

The Ineos representative added: “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 safeguard skilled jobs. British industry has had a brutal year, yet everyone relies on this industry every day. Should we fail to manufacture these critical products 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 improve energy efficiency, cut carbon emissions, and upgrade plant performance.

He noted the site, which uses an ethylene cracker running on North Sea gas and imported 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, valued at hundreds of millions of euros—interestingly while Ratcliffe was a prominent backer of the campaign for the UK to leave the EU.