Industrial Firms Controlled by Tycoon Sir Jim Ratcliffe Obtained As Much As £70m in UK State Aid Over the Last Four-Year Period

Prior to this week's £50m state rescue package for its Grangemouth facility, industrial firms controlled by tycoon Jim Ratcliffe were already awarded as much as £70m in British government support during the previous four-year period.

Latest Disclosures and Financial Support

According to government disclosures published recently, public funding to Ratcliffe's chemical empire in the last year alone ranged from £16m and £38m. From August 2022 onwards, the company has obtained between £28m and £70m.

Authorities intervened on Tuesday to grant Ineos with £50m to prop up its Scottish ethylene plant, concerned that otherwise the UK would lose its last remaining facility manufacturing ethylene—a critical raw material for plastics. Officials additionally supported a £75m loan guarantee, while Ineos pledged to invest £30m of its private capital.

Plant Closure and Broader Context

This intervention comes after Ineos closed the neighbouring oil refinery in September 2024, costing 400 jobs—a move described as a huge blow to the local community and a challenge for the government.

Ratcliffe, who is worth $14.5bn, is understood to have requested government assistance in October. This appeal comes at a time when the wide-ranging Ineos group, controlled by the 73-year-old, has been under considerable economic strain, partly due to soaring energy costs in the wake of Russia's full-scale invasion of Ukraine.

In a sign of growing unease over its financial health, Fitch Ratings downgraded Ineos's debt rating in September. Ratcliffe has also been required to invest significant funds into his Ineos Grenadier automotive project and efforts to revitalise the football club, in which he holds a minority stake.

Form of Support and Official Responses

Most the earlier government support came in the form of tax relief in return for “commitments to reduce energy use and CO2 output.” Figures for these relief schemes for Ineos's sites 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 “granted based on strict criteria, and available to any UK business that qualifies.”

While Ratcliffe thanked the government for the £50m support in an announcement, Ineos separately issued more critical comments. In these, the billionaire strongly criticised government policy, including carbon taxes paid by industrial users.

“The solution is not decarbonisation by deindustrialisation,” he stated. “Without a strong manufacturing base, the economy will falter. High energy costs and punitive carbon charges are pushing industry out of the UK at an alarming rate.”

Speaking elsewhere, Ratcliffe labelled carbon taxes as “an extremely foolish levy in the world,” contending 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.

Future Environmental Pledges

The Ineos representative 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. The UK chemicals sector has had a very difficult year, yet everyone relies on this industry every day. Should we fail to manufacture 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, indicated the new funding would be used to enhance energy efficiency, reduce carbon emissions, and boost overall 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.

Records show that Ineos has previously received substantial 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 exit the European Union.