Chemical Firms Controlled by Tycoon Sir Jim Ratcliffe Received Up to £70m in UK Government Support In the Past Four Years
Before this week's £50m government bailout for its Scottish plant, chemical companies controlled by billionaire Jim Ratcliffe were already awarded up to £70m in British government support over the past four years.
Recent Revelations and Financial Support
According to government disclosures released this week, state aid to Ratcliffe's chemical empire in the most recent year ranged from £16m and £38m. From August 2022 onwards, the conglomerate has received a total of £28m and £70m.
The government stepped in this week to provide Ineos with £50m to prop up its Grangemouth operations, concerned that without it the UK would cease to have its sole facility producing ethylene—a critical raw material for plastics. The government also backed a £75m credit guarantee, while Ineos pledged to invest £30m of its own funds.
Refinery Shutdown and Broader Context
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 political problem for the government.
The billionaire, with an estimated net worth of $14.5bn, reportedly requested government assistance in October. This appeal comes at a time when the wide-ranging Ineos group, controlled by the 73-year-old, has faced significant financial pressure, partly due to sharply increased energy costs following Russia's 2022 invasion of Ukraine.
In a sign of increasing concern over its ability to manage debt, the credit rating agency downgraded Ineos's debt rating in September. Ratcliffe has also been required to invest significant funds into his off-road vehicle venture and the turnaround of Manchester United, in which he holds a partial ownership.
Nature of Aid and Company Statements
The majority of the previous state aid came in the form of tax relief in exchange for “voluntary agreements to curb consumption and CO2 output.” Figures for these tax breaks for Ineos's sites in Grangemouth and Hull are reported as ranges rather than exact amounts.
An Ineos spokesperson said the aid did not represent “favourable terms” 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 official statement, Ineos separately issued sharper remarks. In these, the billionaire launched a broadside against government policy, including carbon taxes levied on industrial users.
“The answer is NOT decarbonisation by deindustrialisation,” he stated. “Without a strong 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.”
Speaking elsewhere, Ratcliffe labelled carbon taxes as “the most idiotic tax in the world,” contending they place UK plants at a disadvantage against international competitors. It is noted that most chemicals and plastics are excluded 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 safeguard skilled jobs. The UK chemicals sector has had a very difficult year, yet everyone relies 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 upgrade plant performance.
He noted the site, which uses an processing unit running on North Sea gas and US-sourced liquefied petroleum gas, had been under “extreme pressure” from surging 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 prominent backer of the campaign for the UK to leave the EU.
