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Before the recent £50m government bailout for its Grangemouth facility, industrial firms controlled by tycoon Sir Jim Ratcliffe were already awarded up to £70m in UK state aid during the previous four-year period.

Recent Revelations and Financial Support

Based on government disclosures released this week, 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.

Authorities intervened this week 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 critical raw material for plastics. The government also backed a £75m credit guarantee, while Ineos committed to invest £30m of its private capital.

Plant Closure and Wider Challenges

This support arrives after 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.

Ratcliffe, who is worth $14.5bn, reportedly requested government assistance in October. This appeal coincides with the wide-ranging Ineos group, controlled by the 73-year-old, has been under considerable economic strain, partly due to soaring energy costs following Russia's 2022 invasion of Ukraine.

In a sign of increasing concern over its financial health, Fitch Ratings lowered Ineos's credit rating in September. Ratcliffe has also been required to invest substantial resources into his Ineos Grenadier automotive project and efforts to revitalise the football club, in which he holds a minority stake.

Form of Support and Company Statements

Most the earlier government support was delivered in the form of tax breaks in exchange for “commitments to reduce energy use and carbon dioxide emissions.” Figures for these tax breaks for Ineos's plants in Grangemouth and Hull are reported as ranges rather than precise figures.

An Ineos representative stated the aid did not represent “favourable terms” for the company, but was “granted based on strict criteria, and available to any UK business that meets the requirements.”

Although Ratcliffe thanked the government for the £50m support in an official statement, Ineos also released more critical comments. In these, the industrialist launched a broadside against government policy, specifically carbon taxes levied on industrial users.

“The answer is NOT decarbonisation by deindustrialisation,” he stated. “Without a strong manufacturing base, the economy will falter. High energy costs and punitive carbon charges are driving industry out of the UK at an unsustainable pace.”

Speaking elsewhere, Ratcliffe described carbon taxes as “an extremely foolish levy in the world,” contending they put UK plants at a disadvantage against foreign rivals. It is noted that most chemicals and plastics are not covered from the UK's initial carbon border adjustment mechanism.

Investment and Sustainability Claims

The Ineos spokesperson further stated: “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. The UK chemicals sector has had a very difficult 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 more polluting operations abroad.”

Colin Pritchard, head of sustainability for the company's chemicals unit, said the Grangemouth money would be used to improve energy efficiency, reduce carbon emissions, and upgrade plant performance.

He explained the site, which uses an processing unit running on North Sea gas and imported liquefied petroleum gas, had been under “extreme pressure” from surging energy costs and the UK's carbon taxes.

Records show that Ineos has previously received significant tax breaks from the EU, worth hundreds of millions of euros—interestingly while Ratcliffe was a leading supporter of the campaign for the UK to leave the EU.