Industrial Firms Controlled by Tycoon Jim Ratcliffe Received Up to £70m in British State Aid In the Past Four Years
Prior to the recent £50m government bailout for its Grangemouth facility, chemical companies under the ownership of billionaire Sir Jim Ratcliffe were already awarded as much as £70m in UK state aid over the past four years.
Recent Revelations and Financial Support
Based on official data released recently, state aid to Ratcliffe's chemical empire in the last year alone was between £16m and £38m. Since August 2022, the company has received between £28m and £70m.
The government stepped in on Tuesday to grant Ineos with £50m to prop up its Grangemouth operations, fearing that without it the UK would cease to have its sole facility manufacturing ethylene—a critical raw material for plastics. Officials additionally supported a £75m loan guarantee, while Ineos committed to invest £30m of its own funds.
Plant Closure and Wider Challenges
This intervention arrives following Ineos closed the neighbouring oil refinery in September 2024, resulting in the loss of 400 jobs—a move described as a huge blow to the area and a political problem for the government.
Ratcliffe, who is worth $14.5bn, reportedly asked for government help in October. This appeal comes at a time when the expansive Ineos group, controlled by the 73-year-old, has faced significant financial pressure, in part due to soaring energy costs in the wake of Russia's 2022 invasion of Ukraine.
In a sign of increasing concern over its financial health, the credit rating agency lowered Ineos's debt rating in September. Ratcliffe has also had to commit significant funds into his off-road vehicle venture and the turnaround of the football club, in which he holds a minority stake.
Nature of Aid and Company Statements
The majority of the earlier government support was delivered in the form of tax relief in return for “commitments to reduce energy use 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 representative said the aid did not constitute “favourable terms” for the company, but was “awarded against strict criteria, and open to any UK business that qualifies.”
While Ratcliffe thanked the government for the £50m support in an announcement, Ineos also released sharper remarks. In these, the billionaire 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 falter. Soaring power prices and punitive carbon charges are driving industry out of the UK at an alarming rate.”
In further comments, Ratcliffe described carbon taxes as “an extremely foolish levy in the world,” arguing they place UK plants at a competitive disadvantage against foreign rivals. Currently, most chemicals and plastics are not covered 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 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 society depends on this industry every day. If we don't produce these essential materials in the UK, they are brought in from overseas, often from higher-carbon production 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 upgrade overall performance.
He explained the site, which uses an ethylene cracker running on 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 in the past obtained 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.
