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

Recent Revelations and Financial Support

According to government disclosures released this week, public funding to Ratcliffe's chemical empire in the last year alone ranged from £16m and £38m. Since August 2022, the conglomerate has obtained between £28m and £70m.

Authorities intervened this week to grant Ineos with £50m to support its Scottish ethylene plant, fearing that otherwise the UK would cease to have its sole facility producing ethylene—a critical feedstock for plastics. The government also backed a £75m loan guarantee, while Ineos committed to invest £30m of its own funds.

Plant Closure and Wider Challenges

This intervention comes following Ineos shut down the neighbouring oil refinery in September 2024, costing 400 jobs—a move described as a huge blow to the area and a challenge for the government.

The billionaire, with an estimated net worth of $14.5bn, reportedly asked for government help in October. This appeal comes at a time when the wide-ranging Ineos group, under the control of the 73-year-old, has faced considerable economic strain, in part due to sharply increased energy costs in the wake of Russia's full-scale invasion of Ukraine.

Reflecting growing unease over its financial health, Fitch Ratings downgraded Ineos's debt rating in September. Ratcliffe has also had to commit substantial resources into his off-road vehicle venture and efforts to revitalise Manchester United, in which he holds a minority stake.

Form of Support and Company Statements

The majority of the earlier government support came 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 were given as estimates rather than precise figures.

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

Although Ratcliffe thanked the government for the £50m support in an announcement, Ineos separately issued sharper remarks. In these, the industrialist strongly criticised 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 continue to decline. Soaring power prices and burdensome carbon levies are pushing industry out of the UK at an unsustainable pace.”

Speaking elsewhere, Ratcliffe described carbon taxes as “the most idiotic tax in the world,” arguing they put UK plants at a competitive disadvantage against foreign rivals. It is noted that most chemicals and plastics are not covered from the UK's planned carbon border adjustment mechanism.

Investment and Sustainability Claims

The Ineos representative added: “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 safeguard skilled jobs. The UK chemicals sector has had a brutal year, yet everyone relies 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.”

Colin Pritchard, head of sustainability for the company's Olefins & Polymers division, indicated the Grangemouth money would be used to enhance energy efficiency, reduce carbon emissions, and upgrade overall performance.

He noted the site, which uses an ethylene cracker running on North Sea gas and US-sourced liquefied petroleum gas, had been under “intense strain” from surging 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 leave the EU.