Chemical Companies Controlled by Tycoon Jim Ratcliffe Received Up to £70m in British State Aid In the Past Four Years
Before this week's £50m state rescue package for its Grangemouth facility, industrial firms under the ownership of billionaire Sir Jim Ratcliffe were already awarded up to £70m in British government support over the past four years.
Recent Disclosures and Financial Support
Based on official data published this week, public funding to Ratcliffe's chemical empire in the most recent year was between £16m and £38m. Since August 2022, the company has received between £28m and £70m.
Authorities intervened on Tuesday to grant Ineos with £50m to prop up its Scottish ethylene plant, concerned that without it the UK would cease to have its sole facility producing ethylene—a critical raw material for plastics. Officials additionally supported a £75m credit guarantee, while Ineos pledged to invest £30m of its private capital.
Refinery Shutdown and Wider Challenges
This intervention comes after Ineos closed the adjacent oil refinery in September 2024, costing 400 jobs—a move described as a significant setback to the area and a challenge 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 significant financial pressure, partly due to sharply increased energy costs in the wake of Russia's full-scale invasion of Ukraine.
Reflecting growing unease over its ability to manage debt, Fitch Ratings lowered Ineos's credit rating in September. Ratcliffe has also been required to invest substantial resources 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
Most the earlier government support came in the form of tax breaks in exchange for “voluntary agreements to curb consumption 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 said the aid did not constitute “special treatment” for the company, but was “granted based on strict criteria, and open to any UK business that qualifies.”
While Ratcliffe publicly welcomed the £50m support in an official statement, Ineos also released more critical comments. In these, the industrialist strongly criticised government policy, specifically carbon taxes levied on industrial users.
“The answer is NOT decarbonisation by deindustrialisation,” Ratcliffe wrote. “Without a strong manufacturing base, the economy will falter. Soaring power prices and punitive carbon charges are driving industry out of the UK at an unsustainable pace.”
In further comments, Ratcliffe described carbon taxes as “the most idiotic tax in the world,” contending they place UK plants at a competitive disadvantage against international competitors. It is noted that most chemicals and plastics are excluded from the UK's planned carbon import tax.
Investment and Environmental Pledges
The Ineos spokesperson further stated: “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. If we don't produce 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 chemicals unit, said the new funding would be used to enhance energy efficiency, cut carbon emissions, and upgrade overall performance.
He explained 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.
It has also been reported that Ineos has in the past obtained substantial 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.
