Industrial Firms Owned by Tycoon Jim Ratcliffe Received Up to £70m in British State Aid Over the Past Four Years
Prior to the recent £50m government bailout for its Scottish plant, chemical companies controlled by billionaire Sir Jim Ratcliffe were already awarded as much as £70m in UK state aid during the previous four-year period.
Latest Revelations and Financial Support
According to government disclosures released this week, state aid to Ratcliffe's chemical empire in the most recent year was between £16m and £38m. Since August 2022, the company has received between £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 sole facility manufacturing ethylene—a vital raw material for plastics. The government also backed a £75m loan guarantee, while Ineos pledged to invest £30m of its own funds.
Refinery Shutdown and Broader Context
This intervention comes following Ineos shut down the neighbouring oil refinery in September 2024, costing 400 jobs—a move described as a huge blow to the local community 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. The request coincides with the wide-ranging Ineos group, under the control of the 73-year-old, has been under significant financial pressure, partly due to sharply increased energy costs in the wake of 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 had to commit substantial resources into his off-road vehicle venture and the turnaround of Manchester United, in which he holds a minority stake.
Form of Support and Company Statements
Most the earlier government support came in the form of tax relief in exchange for “voluntary agreements to reduce energy use and CO2 output.” The value of these relief schemes for Ineos's sites in Grangemouth and Hull are reported as ranges rather than exact amounts.
An Ineos spokesperson said the aid did not constitute “favourable terms” for the company, but was “granted based on strict criteria, and open to any UK business that qualifies.”
While Ratcliffe publicly welcomed the £50m support in an official statement, Ineos also released sharper remarks. In these, the billionaire launched a broadside against government policy, specifically carbon taxes levied on industrial users.
“The solution is not decarbonisation by deindustrialisation,” Ratcliffe wrote. “Lacking a robust manufacturing base, the economy will continue to decline. Soaring power prices and burdensome carbon levies are pushing 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 competitive disadvantage against international competitors. It is noted that most chemicals and plastics are excluded from the UK's initial carbon border adjustment mechanism.
Investment and Environmental Pledges
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 brutal year, yet everyone relies on this industry every day. Should we fail to manufacture these critical products in the UK, they are imported instead, often from higher-carbon production abroad.”
A senior Ineos executive, head of sustainability for the company's chemicals unit, said the new funding would be used to improve energy efficiency, cut carbon emissions, and boost plant performance.
He noted the site, which uses an ethylene cracker utilising 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 substantial tax breaks from the EU, worth hundreds of millions of euros—notably while Ratcliffe was a prominent backer of the campaign for the UK to leave the EU.