Industrial Firms Controlled by Billionaire Sir Jim Ratcliffe Obtained As Much As £70m in UK Government Support In the Past Four Years
Before this week's £50m government bailout for its Scottish plant, chemical companies under the ownership of tycoon Jim Ratcliffe were already awarded as much as £70m in British government support during the previous four-year period.
Recent Revelations and Financial Support
According to government disclosures released this week, state aid to the Ineos group in the most recent year was between £16m and £38m. From August 2022 onwards, the conglomerate has obtained between £28m and £70m.
The government stepped in this week to provide Ineos with £50m to support its Grangemouth operations, concerned that otherwise the UK would cease to have its last remaining facility producing ethylene—a critical feedstock for plastics. Officials additionally supported a £75m credit guarantee, while Ineos pledged to invest £30m of its own funds.
Plant Closure and Wider Challenges
This support comes following Ineos closed 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 asked for government assistance in October. This appeal coincides with the wide-ranging Ineos group, under the control of the 73-year-old, has been under significant financial pressure, in part due to soaring energy costs in the wake of Russia's 2022 invasion of Ukraine.
Reflecting 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 substantial resources into his Ineos Grenadier automotive project and efforts to revitalise Manchester United, in which he holds a minority stake.
Form of Support and Company Statements
Most the previous state aid came in the form of tax breaks in exchange for “voluntary agreements to reduce energy use and CO2 output.” Figures for these relief schemes for Ineos's sites in Grangemouth and Hull were given as estimates rather than exact amounts.
An Ineos spokesperson said the aid did not constitute “favourable terms” for the company, but was “awarded against strict criteria, and open to any UK business that meets the requirements.”
Although Ratcliffe thanked the government for the £50m support in an official statement, Ineos also released sharper remarks. In these, the industrialist launched a broadside against government policy, specifically carbon taxes levied on industrial users.
“The solution is not decarbonisation by deindustrialisation,” he stated. “Without a strong manufacturing base, the economy will continue to decline. High energy costs and punitive carbon charges are pushing industry out of the UK at an unsustainable pace.”
Speaking elsewhere, Ratcliffe labelled carbon taxes as “an extremely foolish levy in the world,” contending they place UK plants at a disadvantage against foreign rivals. Currently, most chemicals and plastics are not covered from the UK's planned carbon border adjustment mechanism.
Future Environmental Pledges
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. British industry has had a brutal year, yet everyone relies on this industry every day. If we don't produce these critical products in the UK, they are brought in from overseas, often from more polluting operations abroad.”
A senior Ineos executive, head of sustainability for the company's Olefins & Polymers division, indicated the new funding would be used to improve energy efficiency, cut carbon emissions, and boost plant 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 rocketing energy costs and the UK's carbon taxes.
Records show 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.