Chemical Companies Owned by Tycoon Sir Jim Ratcliffe Obtained As Much As £70m in British Government Support In the Past Four Years
Prior to this week's £50m state rescue package for its Scottish plant, industrial firms controlled by tycoon Sir Jim Ratcliffe were already awarded up to £70m in British government support over the past four years.
Recent Disclosures and Bailout Package
Based on government disclosures released recently, state aid to Ratcliffe's chemical empire in the most recent year was between £16m and £38m. Since August 2022, the conglomerate has obtained between £28m and £70m.
The government stepped in this week to provide Ineos with £50m to prop up its Grangemouth operations, concerned that otherwise the UK would cease to have its sole facility manufacturing ethylene—a critical raw material for plastics. Officials additionally supported 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 huge blow to the local community and a political problem for the government.
Ratcliffe, who is worth $14.5bn, reportedly asked for government assistance in October. This appeal comes at a time when the wide-ranging Ineos group, controlled by the 73-year-old, has faced considerable economic strain, partly due to sharply increased energy costs in the wake of Russia's 2022 invasion of Ukraine.
In a sign of increasing concern over its ability to manage debt, the credit rating agency downgraded Ineos's credit rating in September. Ratcliffe has also been required to invest significant funds into his off-road vehicle venture and the turnaround of Manchester United, in which he holds a minority stake.
Form of Support and Company Statements
The majority of the previous state aid came in the form of tax relief in exchange for “voluntary agreements to curb consumption and carbon dioxide emissions.” Figures for these relief schemes for Ineos's sites in Grangemouth and Hull were given as estimates rather than exact amounts.
An Ineos spokesperson 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.”
While Ratcliffe publicly welcomed the £50m support in an announcement, Ineos separately issued more critical comments. In these, the billionaire strongly criticised government policy, specifically carbon taxes levied on industrial users.
“The answer is NOT decarbonisation by deindustrialisation,” Ratcliffe wrote. “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 unsustainable pace.”
Speaking elsewhere, Ratcliffe labelled carbon taxes as “an extremely foolish levy in the world,” arguing they place UK plants at a disadvantage against foreign rivals. Currently, most chemicals and plastics are not covered from the UK's planned carbon import tax.
Investment and Environmental Pledges
The Ineos spokesperson 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. The UK chemicals sector has had a brutal year, yet everyone relies on this industry every day. If we don't produce 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 Olefins & Polymers division, indicated the new funding would be used to improve energy efficiency, reduce carbon emissions, and boost plant performance.
He explained the site, which uses an ethylene cracker utilising North Sea gas and imported liquefied petroleum gas, had been under “intense strain” from surging 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, valued at hundreds of millions of euros—interestingly while Ratcliffe was a leading supporter of the campaign for the UK to exit the European Union.
