Industrial Companies Owned by Tycoon Sir Jim Ratcliffe Received Up to £70m in British Government Support In the Past Four Years

Before the recent £50m government bailout for its Grangemouth facility, chemical companies controlled by tycoon Jim Ratcliffe had already been granted up to £70m in British government support over the past four years.

Recent Revelations and Bailout Package

Based on official data released this week, state aid to Ratcliffe's chemical empire in the most recent year was between £16m and £38m. From August 2022 onwards, the company has obtained between £28m and £70m.

Authorities intervened this week to grant Ineos with £50m to support its Grangemouth operations, concerned that otherwise the UK would cease to have its last remaining facility manufacturing ethylene—a critical raw material for plastics. The government also backed a £75m loan guarantee, while Ineos committed to invest £30m of its own funds.

Plant Closure and Broader Context

This support arrives after 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 local community and a challenge for the government.

The billionaire, with an estimated net worth of $14.5bn, is understood to have asked for government help in October. This appeal comes at a time when the wide-ranging Ineos group, controlled by the 73-year-old, has faced significant financial pressure, partly due to soaring 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 Ineos Grenadier automotive project and efforts to revitalise Manchester United, 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 exchange for “commitments to reduce energy use and carbon dioxide emissions.” Figures for these relief schemes for Ineos's plants in Grangemouth and Hull were given as estimates rather than precise figures.

An Ineos spokesperson said the aid did not represent “special treatment” for the company, but was “awarded against strict criteria, and open to any UK business that qualifies.”

While Ratcliffe publicly welcomed the £50m support in an announcement, Ineos separately issued more critical comments. In these, the industrialist launched a broadside against government policy, specifically carbon taxes paid by industrial users.

“The answer is NOT decarbonisation by deindustrialisation,” he stated. “Lacking a robust 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 “the most idiotic tax in the world,” arguing they place UK plants at a competitive disadvantage against foreign rivals. It is noted that most chemicals and plastics are excluded from the UK's planned carbon border adjustment mechanism.

Investment and Environmental Pledges

The Ineos representative further stated: “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 safeguard skilled jobs. The UK chemicals sector has had a very difficult year, yet everyone relies on this industry every day. Should we fail to manufacture these essential materials 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 chemicals unit, indicated the Grangemouth money 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 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—interestingly while Ratcliffe was a prominent backer of the campaign for the UK to exit the European Union.