Industrial Firms Owned by Tycoon Sir Jim Ratcliffe Obtained As Much As £70m in UK State Aid Over the Last Four-Year Period

Before the recent £50m government bailout for its Scottish plant, industrial firms controlled by tycoon Jim Ratcliffe had already been granted up to £70m in UK state aid during the previous four-year period.

Recent Disclosures and Bailout Package

According to official data 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 support its Grangemouth operations, fearing that otherwise the UK would cease to have its last remaining facility manufacturing ethylene—a critical raw material for plastics. The government also backed a £75m loan guarantee, while Ineos committed to invest £30m of its private capital.

Refinery Shutdown and Broader Context

This support comes following Ineos shut down the neighbouring oil refinery in late 2024, resulting in the loss of 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, is understood to have requested government assistance in October. This appeal coincides with the expansive Ineos group, under the control of the 73-year-old, has faced considerable economic strain, partly due to soaring energy costs following Russia's full-scale invasion of Ukraine.

Reflecting increasing concern over its financial health, the credit rating agency downgraded 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 the football club, in which he holds a partial ownership.

Form of Support and Official Responses

Most the earlier government support came in the form of tax relief in return for “commitments to reduce energy use and CO2 output.” The value of these tax breaks for Ineos's plants in Grangemouth and Hull were given as estimates rather than exact amounts.

An Ineos spokesperson said the aid did not represent “special treatment” for the company, but was “granted based on strict criteria, and available to any UK business that qualifies.”

Although Ratcliffe thanked the government for the £50m support in an announcement, Ineos also released sharper remarks. In these, the billionaire strongly criticised government policy, including carbon taxes paid by industrial users.

“The solution is not decarbonisation by deindustrialisation,” he stated. “Lacking a robust manufacturing base, the economy will continue to decline. High energy costs and burdensome carbon levies 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,” arguing they put UK plants at a competitive disadvantage against foreign rivals. It is noted that most chemicals and plastics are not covered from the UK's initial carbon import tax.

Future Sustainability Claims

The Ineos spokesperson added: “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 brutal year, yet everyone relies on this industry every day. If we don't produce these essential materials in the UK, they are brought in from overseas, 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 enhance energy efficiency, reduce carbon emissions, and boost plant performance.

He noted the site, which uses an processing unit utilising North Sea gas and imported 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 previously received significant 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.