Chemical Firms Controlled by Tycoon Sir Jim Ratcliffe Received As Much As £70m in British State Aid In the Past Four Years

Before the recent £50m state rescue package for its Scottish plant, chemical companies controlled by tycoon Sir Jim Ratcliffe had already been granted as much as £70m in UK state aid over the past four years.

Recent Revelations and Bailout Package

Based on 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 a total of £28m and £70m.

The government stepped in on Tuesday to grant Ineos with £50m to prop up its Grangemouth operations, fearing that without it the UK would lose its last remaining facility manufacturing ethylene—a critical raw material for plastics. Officials additionally supported a £75m credit guarantee, while Ineos pledged to invest £30m of its own funds.

Plant Closure and Broader Context

This intervention comes following Ineos shut down the neighbouring oil refinery in September 2024, resulting in the loss of 400 jobs—a move described as a huge blow to the area and a challenge for the government.

Ratcliffe, who is worth $14.5bn, is understood to have asked for government help in October. The request comes at a time when the expansive Ineos group, controlled by the 73-year-old, has been under considerable economic strain, partly due to soaring energy costs following Russia's full-scale invasion of Ukraine.

In a sign of increasing concern over its ability to manage debt, the credit rating agency lowered Ineos's debt rating in September. Ratcliffe has also had to commit substantial resources into his Ineos Grenadier automotive project and efforts to revitalise Manchester United, in which he holds a partial ownership.

Nature of Aid and Company Statements

The majority of the previous state aid was delivered in the form of tax relief in exchange for “commitments to curb consumption and carbon dioxide emissions.” The value of these tax breaks for Ineos's sites in Grangemouth and Hull are reported as ranges rather than precise figures.

An Ineos representative stated the aid did not represent “special treatment” 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 more critical comments. In these, the billionaire strongly criticised government policy, specifically carbon taxes paid by industrial users.

“The answer is NOT decarbonisation by deindustrialisation,” Ratcliffe wrote. “Without a strong manufacturing base, the economy will falter. High energy costs and punitive carbon charges are driving industry out of the UK at an alarming rate.”

In further comments, Ratcliffe described carbon taxes as “the most idiotic tax in the world,” arguing they place UK plants at a competitive disadvantage against international competitors. Currently, most chemicals and plastics are not covered from the UK's planned carbon border adjustment mechanism.

Investment and Environmental Pledges

The Ineos representative further stated: “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 protect skilled jobs. British industry 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 higher-carbon production abroad.”

Colin Pritchard, head of sustainability for the company's chemicals unit, said the new funding would be used to enhance energy efficiency, reduce carbon emissions, and boost plant 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 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.