Chemical Companies Owned by Tycoon Sir Jim Ratcliffe Obtained As Much As £70m in UK State Aid Over the Last Four-Year Period

Before the recent £50m government bailout for its Grangemouth facility, industrial firms under the ownership of tycoon Jim Ratcliffe had already been granted as much as £70m in UK state aid over the past four years.

Latest Disclosures and Bailout Package

Based on official data published this week, state aid to the Ineos group in the last year alone was between £16m and £38m. From August 2022 onwards, the company has obtained between £28m and £70m.

The government stepped in this week to grant Ineos with £50m to support its Grangemouth operations, fearing that otherwise the UK would cease to have its sole facility producing ethylene—a vital raw material for plastics. Officials additionally supported a £75m loan guarantee, while Ineos committed to invest £30m of its own funds.

Refinery Shutdown and Wider Challenges

This support arrives after Ineos closed the neighbouring oil refinery in September 2024, costing 400 jobs—a move described as a huge blow to the local community and a challenge for the government.

Ratcliffe, who is worth $14.5bn, is understood to have requested government assistance in October. This appeal coincides with the expansive Ineos group, under the control of the 73-year-old, has been under considerable economic strain, partly due to sharply increased energy costs following Russia's 2022 invasion of Ukraine.

Reflecting increasing concern over its ability to manage debt, 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 the turnaround of the football club, in which he holds a minority stake.

Nature of Aid and Company Statements

Most the previous state aid was delivered in the form of tax breaks in return for “commitments to curb consumption and carbon dioxide emissions.” The value of these relief schemes for Ineos's plants in Grangemouth and Hull were given as estimates rather than exact amounts.

An Ineos representative stated the aid did not constitute “special treatment” for the company, but was “granted based on strict criteria, and available to any UK business that qualifies.”

While Ratcliffe publicly welcomed the £50m support in an official statement, Ineos separately issued sharper remarks. In these, the billionaire strongly criticised government policy, including carbon taxes levied on industrial users.

“The solution is not decarbonisation by deindustrialisation,” he stated. “Lacking a robust manufacturing base, the economy will falter. High energy costs and burdensome carbon levies 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 disadvantage against international competitors. It is noted that most chemicals and plastics are excluded 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 productive 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. If we don't produce these essential materials in the UK, they are brought in from overseas, often from more polluting operations abroad.”

Colin Pritchard, head of sustainability for the company's Olefins & Polymers division, said the new funding would be used to enhance energy efficiency, cut carbon emissions, and upgrade plant performance.

He explained the site, which uses an processing unit utilising North Sea gas and US-sourced liquefied petroleum gas, had been under “intense strain” 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 prominent backer of the campaign for the UK to exit the European Union.