Industrial Companies Controlled by Tycoon Sir Jim Ratcliffe Received Up to £70m in UK Government Support Over the Past Four Years
Prior to this week's £50m state rescue package for its Scottish plant, chemical companies controlled by billionaire Jim Ratcliffe were already awarded up to £70m in British government support during the previous four-year period.
Recent Disclosures and Bailout Package
According to official data published recently, public funding to the Ineos group in the most recent year ranged from £16m and £38m. Since August 2022, the conglomerate has obtained between £28m and £70m.
The government stepped in this week to grant Ineos with £50m to support its Scottish ethylene plant, fearing that without it the UK would cease to have its sole facility manufacturing ethylene—a critical raw material for plastics. The government also backed a £75m loan guarantee, while Ineos pledged to invest £30m of its private capital.
Refinery Shutdown and Wider Challenges
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 significant setback to the local community and a challenge for the government.
The billionaire, with an estimated net worth of $14.5bn, reportedly requested government help in October. This appeal coincides with the expansive Ineos group, controlled by the 73-year-old, has faced significant financial pressure, in part due to soaring energy costs following Russia's full-scale invasion of Ukraine.
In a sign of increasing concern over its financial health, the credit rating agency downgraded Ineos's debt 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 partial ownership.
Form of Support and Company Statements
The majority of the previous state aid came in the form of tax breaks in return for “commitments to curb consumption and CO2 output.” Figures for these tax breaks for Ineos's plants in Grangemouth and Hull were given as estimates rather than precise figures.
An Ineos spokesperson 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 meets the requirements.”
While Ratcliffe thanked the government for the £50m support in an announcement, Ineos separately issued more critical comments. In these, the industrialist launched a broadside against government policy, specifically carbon taxes paid by industrial users.
“The solution 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 unsustainable pace.”
Speaking elsewhere, Ratcliffe described carbon taxes as “an extremely foolish levy in the world,” arguing they place UK plants at a competitive disadvantage against international competitors. It is noted that most chemicals and plastics are not covered from the UK's planned carbon import tax.
Future 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 efficient chemical plants in Europe and to safeguard 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 brought in from overseas, often from higher-carbon production abroad.”
A senior Ineos executive, head of sustainability for the company's Olefins & Polymers division, said the Grangemouth money would be used to improve energy efficiency, reduce carbon emissions, and boost plant 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 rocketing 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—notably while Ratcliffe was a leading supporter of the campaign for the UK to leave the EU.
