Industrial Companies Controlled by Tycoon Sir Jim Ratcliffe Obtained Up to £70m in UK Government Support Over the Past Four Years

Before this week's £50m state rescue package for its Grangemouth facility, chemical companies controlled by billionaire Jim Ratcliffe were already awarded as much as £70m in British government support over the past four years.

Recent Disclosures and Bailout Package

According to government disclosures released this week, public funding to the Ineos group in the last year alone ranged from £16m and £38m. From August 2022 onwards, the company has received a total of £28m and £70m.

Authorities intervened on Tuesday to grant Ineos with £50m to support its Grangemouth operations, fearing that otherwise the UK would lose its last remaining facility producing ethylene—a critical raw material for plastics. The government also backed a £75m credit guarantee, while Ineos committed to invest £30m of its own funds.

Plant Closure and Wider Challenges

This intervention arrives after 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 area and a challenge for the government.

Ratcliffe, who is worth $14.5bn, reportedly asked for government help in October. The request coincides with the wide-ranging Ineos group, controlled by the 73-year-old, has been under considerable economic strain, in part due to sharply increased energy costs following Russia's full-scale invasion of Ukraine.

In a sign of increasing concern over its ability to manage debt, Fitch Ratings lowered Ineos's debt rating in September. Ratcliffe has also been required to invest substantial resources into his off-road vehicle venture and efforts to revitalise Manchester United, in which he holds a partial ownership.

Form of Support and Official Responses

The majority of the previous state aid came in the form of tax relief in return for “voluntary agreements to curb consumption and CO2 output.” The value of these relief schemes for Ineos's sites 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 “awarded against strict criteria, and open to any UK business that meets the requirements.”

Although Ratcliffe publicly welcomed the £50m support in an announcement, Ineos also released sharper remarks. 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. Soaring power prices and burdensome carbon levies are pushing industry out of the UK at an alarming rate.”

In further comments, Ratcliffe described carbon taxes as “an extremely foolish levy in the world,” arguing they place UK plants at a competitive disadvantage against foreign rivals. It is noted that most chemicals and plastics are excluded from the UK's planned carbon border adjustment mechanism.

Investment and Sustainability Claims

The Ineos spokesperson added: “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 brutal year, yet society depends on this industry every day. Should we fail to manufacture these essential materials in the UK, they are imported instead, often from more polluting operations abroad.”

Colin Pritchard, head of sustainability for the company's Olefins & Polymers division, indicated the Grangemouth money would be used to improve energy efficiency, reduce carbon emissions, and boost overall performance.

He explained the site, which uses an ethylene cracker utilising North Sea gas and imported liquefied petroleum gas, had been under “extreme pressure” from surging 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 prominent backer of the campaign for the UK to exit the European Union.