Chemical Companies Controlled by Tycoon Sir Jim Ratcliffe Received Up to £70m in UK Government Support In the Past Four Years
Before this week's £50m state rescue package for its Scottish plant, chemical companies under the ownership of billionaire Jim Ratcliffe had already been granted up to £70m in UK state aid over the past four years.
Latest Disclosures and Bailout Package
Based on government disclosures published recently, state aid to Ratcliffe's chemical empire in the most recent year was between £16m and £38m. Since August 2022, the company has obtained between £28m and £70m.
The government stepped in on Tuesday to grant Ineos with £50m to prop up its Grangemouth operations, fearing that otherwise the UK would lose its sole facility manufacturing ethylene—a critical feedstock for plastics. The government also backed a £75m credit guarantee, while Ineos pledged to invest £30m of its own funds.
Plant Closure and Broader Context
This intervention arrives following Ineos closed the neighbouring oil refinery in September 2024, resulting in the loss of 400 jobs—a move described as a significant setback to the local community and a political problem for the government.
The billionaire, with an estimated net worth of $14.5bn, reportedly asked for government assistance in October. The request coincides with the wide-ranging Ineos group, under the control of the 73-year-old, has faced considerable economic strain, partly due to sharply increased energy costs following Russia's full-scale invasion of Ukraine.
Reflecting growing unease over its financial health, Fitch Ratings lowered Ineos's debt rating in September. Ratcliffe has also been required to invest substantial resources into his off-road vehicle venture and the turnaround of the football club, in which he holds a minority stake.
Form of Support and Company Statements
The majority of the earlier government support was delivered in the form of tax breaks in exchange for “voluntary agreements to reduce energy use and CO2 output.” Figures for these relief schemes for Ineos's plants 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 open to any UK business that qualifies.”
Although Ratcliffe thanked the government for the £50m support in an announcement, Ineos separately issued sharper remarks. In these, the industrialist strongly criticised government policy, specifically carbon taxes paid by industrial users.
“The solution 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 alarming rate.”
In further comments, Ratcliffe labelled carbon taxes as “an extremely foolish levy in the world,” arguing they put UK plants at a competitive disadvantage against foreign rivals. Currently, most chemicals and plastics are not covered from the UK's initial carbon import tax.
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 safeguard skilled jobs. British industry has had a brutal year, yet everyone relies on this industry every day. Should we fail to manufacture these essential materials in the UK, they are imported instead, often from higher-carbon production abroad.”
A senior Ineos executive, head of sustainability for the company's Olefins & Polymers division, indicated the Grangemouth money would be used to improve energy efficiency, reduce carbon emissions, and upgrade overall performance.
He explained 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, worth hundreds of millions of euros—interestingly while Ratcliffe was a prominent backer of the campaign for the UK to exit the European Union.
