Chemical Companies Owned by Billionaire Sir Jim Ratcliffe Received Up to £70m in UK State Aid In the Last Four-Year Period
Prior to this week's £50m government bailout for its Grangemouth facility, chemical companies under the ownership of billionaire Jim Ratcliffe were already awarded as much as £70m in British government support over the past four years.
Latest Revelations and Bailout Package
Based on official data published this week, state aid to the Ineos group in the last year alone was between £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 support its Scottish ethylene plant, fearing that otherwise the UK would lose its sole facility producing ethylene—a critical raw material for plastics. The government also backed a £75m loan guarantee, while Ineos committed to invest £30m of its private capital.
Refinery Shutdown and Wider Challenges
This support arrives following 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.
Ratcliffe, who is worth $14.5bn, reportedly requested government help in October. The request coincides with the wide-ranging Ineos group, controlled by the 73-year-old, has been under significant financial pressure, partly due to soaring energy costs in the wake of Russia's 2022 invasion of Ukraine.
Reflecting growing unease over its ability to manage debt, the credit rating agency lowered 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 Manchester United, in which he holds a minority stake.
Form of Support and Official Responses
The majority of 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 sites in Grangemouth and Hull were given as estimates rather than precise figures.
An Ineos representative stated the aid did not constitute “favourable terms” for the company, but was “awarded against strict criteria, and available to any UK business that meets the requirements.”
While Ratcliffe thanked the government for the £50m support in an official statement, Ineos also released more critical comments. In these, the billionaire launched a broadside against government policy, including carbon taxes levied on 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 burdensome carbon levies 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,” arguing they put UK plants at a disadvantage against international competitors. Currently, most chemicals and plastics are excluded from the UK's planned carbon import tax.
Investment and Environmental Pledges
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 very difficult year, yet society depends on this industry every day. Should we fail to manufacture these essential materials 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 new funding would be used to improve energy efficiency, reduce carbon emissions, and boost overall performance.
He noted the site, which uses an processing unit running on North Sea gas and US-sourced liquefied petroleum gas, had been under “intense strain” from surging 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—interestingly while Ratcliffe was a leading supporter of the campaign for the UK to leave the EU.
