Chemical Firms Controlled by Tycoon Sir Jim Ratcliffe Obtained As Much As £70m in UK Government Support Over the Past Four Years
Prior to the recent £50m state rescue package for its Scottish plant, chemical companies under the ownership of tycoon Jim Ratcliffe had already been granted as much as £70m in UK state aid over the past four years.
Latest Revelations and Bailout Package
According to official data published this week, state aid to the Ineos group in the last year alone was between £16m and £38m. From August 2022 onwards, the conglomerate has received a total of £28m and £70m.
The government stepped in this week to grant Ineos with £50m to support its Scottish ethylene plant, concerned that without it the UK would lose its sole facility manufacturing 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 support 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 local community and a challenge for the government.
The billionaire, with an estimated net worth of $14.5bn, is understood to have asked for government help 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 2022 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 significant funds into his Ineos Grenadier automotive project and efforts to revitalise Manchester United, in which he holds a partial ownership.
Nature of Aid and Official Responses
The majority of the earlier government support was delivered in the form of tax breaks in exchange for “commitments to reduce energy use and CO2 output.” Figures for these tax breaks for Ineos's plants in Grangemouth and Hull are reported as ranges rather than exact amounts.
An Ineos representative stated the aid did not constitute “favourable terms” for the company, but was “awarded against strict criteria, and available to any UK business that meets the requirements.”
Although Ratcliffe thanked the government for the £50m support in an official statement, Ineos separately issued more critical comments. In these, the industrialist launched a broadside against 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 continue to decline. Soaring power prices and punitive carbon charges are driving industry out of the UK at an alarming rate.”
In further comments, Ratcliffe described carbon taxes as “an extremely foolish levy in the world,” contending they put UK plants at a disadvantage against international competitors. Currently, most chemicals and plastics are excluded 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 efficient chemical plants in Europe and to protect skilled jobs. British industry has had a very difficult year, yet society depends on this industry every day. If we don't produce these essential materials in the UK, they are imported instead, often from more polluting operations abroad.”
A senior Ineos executive, head of sustainability for the company's chemicals unit, said the Grangemouth money would be used to improve energy efficiency, reduce carbon emissions, and boost overall performance.
He noted the site, which uses an ethylene cracker running on North Sea gas and US-sourced liquefied petroleum gas, had been under “intense strain” from rocketing energy costs and the UK's carbon taxes.
Records show 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.
