Prior to the recent £50m government bailout for its Grangemouth facility, industrial firms controlled by tycoon Sir Jim Ratcliffe had already been granted up to £70m in British government support over the past four years.
Based on government disclosures released recently, state aid to Ratcliffe's chemical empire in the last year alone was between £16m and £38m. Since August 2022, the conglomerate has received a total of £28m and £70m.
The government stepped in on Tuesday to provide Ineos with £50m to prop up its Grangemouth operations, fearing that otherwise the UK would cease to have its last remaining facility producing ethylene—a vital feedstock for plastics. The government also backed a £75m credit guarantee, while Ineos pledged to invest £30m of its own funds.
This intervention arrives after Ineos closed the adjacent oil refinery in late 2024, resulting in the loss of 400 jobs—a move described as a huge blow to the area and a political problem for the government.
The billionaire, with an estimated net worth of $14.5bn, is understood to have asked for government assistance in October. This appeal coincides with the wide-ranging Ineos group, controlled by the 73-year-old, has faced significant financial pressure, in part due to sharply increased energy costs in the wake of Russia's full-scale invasion of Ukraine.
In a sign of growing unease over its ability to manage debt, 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.
The majority of the previous state aid came in the form of tax breaks in exchange for “commitments to curb consumption and carbon dioxide emissions.” Figures for these tax breaks for Ineos's plants in Grangemouth and Hull are reported as ranges rather than exact amounts.
An Ineos representative said the aid did not constitute “special treatment” for the company, but was “awarded against strict criteria, and available to any UK business that meets the requirements.”
Although Ratcliffe publicly welcomed the £50m support in an official statement, Ineos also released sharper remarks. In these, the industrialist strongly criticised government policy, specifically carbon taxes levied on industrial users.
“The solution is not decarbonisation by deindustrialisation,” Ratcliffe wrote. “Without a strong manufacturing base, the economy will falter. Soaring power prices and burdensome carbon levies are pushing industry out of the UK at an alarming rate.”
Speaking elsewhere, Ratcliffe described carbon taxes as “an extremely foolish levy in the world,” contending they put UK plants at a competitive disadvantage against international competitors. Currently, most chemicals and plastics are not covered from the UK's planned carbon import tax.
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 brutal year, yet society depends on this industry every day. Should we fail to manufacture these critical products in the UK, they are brought in from overseas, often from higher-carbon production abroad.”
Colin Pritchard, head of sustainability for the company's chemicals unit, said the Grangemouth money would be used to enhance energy efficiency, reduce carbon emissions, and upgrade overall performance.
He noted the site, which uses an ethylene cracker utilising North Sea gas and imported liquefied petroleum gas, had been under “intense strain” from surging energy costs and the UK's carbon taxes.
Records show that Ineos has previously received substantial 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 exit the European Union.
