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Prior to the recent £50m state rescue package for its Scottish plant, industrial firms controlled by billionaire Sir Jim Ratcliffe were already awarded as much as £70m in UK state aid during the previous four-year period.

Recent Disclosures and Bailout Package

Based on official data published this week, state aid to Ratcliffe's chemical empire in the last year alone ranged from £16m and £38m. Since August 2022, the company has received a total of £28m and £70m.

Authorities intervened this week to grant Ineos with £50m to support its Grangemouth operations, fearing 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 Broader Context

This intervention comes following Ineos shut down the adjacent oil refinery in late 2024, resulting in the loss of 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, is understood to have asked for government assistance in October. This appeal comes at a time when the wide-ranging Ineos group, controlled by the 73-year-old, has been under significant financial pressure, partly due to soaring energy costs following Russia's full-scale invasion of Ukraine.

In a sign of increasing concern over its ability to manage debt, the credit rating agency lowered Ineos's credit rating in September. Ratcliffe has also had to commit substantial resources into his off-road vehicle venture and efforts to revitalise the football club, in which he holds a minority stake.

Nature of Aid and Official Responses

The majority of the previous state aid came in the form of tax breaks in return for “voluntary agreements to curb consumption and carbon dioxide emissions.” Figures for these relief schemes for Ineos's sites in Grangemouth and Hull are reported as ranges rather than precise figures.

An Ineos spokesperson stated the aid did not constitute “favourable terms” for the company, but was “awarded against strict criteria, and open to any UK business that qualifies.”

Although Ratcliffe publicly welcomed the £50m support in an announcement, Ineos separately issued sharper remarks. In these, the billionaire launched a broadside against government policy, including carbon taxes paid by industrial users.

“The answer is NOT decarbonisation by deindustrialisation,” Ratcliffe wrote. “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 alarming rate.”

Speaking elsewhere, Ratcliffe described carbon taxes as “an extremely foolish levy in the world,” arguing they put UK plants at a competitive disadvantage against international competitors. Currently, 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 productive chemical plants in Europe and to protect 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.”

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

He noted the site, which uses an ethylene cracker running on North Sea gas and imported liquefied petroleum gas, had been under “intense strain” from rocketing 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—interestingly while Ratcliffe was a prominent backer of the campaign for the UK to leave the EU.