Chemical Firms Owned by Tycoon Jim Ratcliffe Received Up to £70m in British State Aid Over the Last Four-Year Period

Before this week's £50m state rescue package for its Scottish plant, chemical companies under the ownership of tycoon Jim Ratcliffe had already been granted up to £70m in UK state aid during the previous four-year period.

Recent Disclosures and Financial Support

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 conglomerate has received between £28m and £70m.

The government stepped in this week to provide Ineos with £50m to support its Grangemouth operations, concerned that without it the UK would cease to have its last remaining facility manufacturing ethylene—a vital feedstock for plastics. Officials additionally supported a £75m credit guarantee, while Ineos committed to invest £30m of its own funds.

Plant Closure and Wider Challenges

This support comes following Ineos shut down the adjacent oil refinery in late 2024, resulting in the loss of 400 jobs—a move described as a huge blow to the local community and a political problem for the government.

The billionaire, with an estimated net worth of $14.5bn, reportedly requested government help in October. The request comes at a time when the expansive Ineos group, under the control of the 73-year-old, has faced considerable economic strain, 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 financial health, Fitch Ratings lowered Ineos's credit rating in September. Ratcliffe has also been required to invest significant funds into his Ineos Grenadier automotive project and the turnaround of the football club, in which he holds a partial ownership.

Form of Support and Official Responses

The majority of the previous state aid was delivered in the form of tax breaks in exchange for “commitments to reduce energy use and CO2 output.” Figures for these relief schemes for Ineos's sites in Grangemouth and Hull are reported as ranges rather than precise figures.

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

Although Ratcliffe thanked the government for the £50m support in an official statement, Ineos also released sharper remarks. In these, the billionaire strongly criticised government policy, specifically carbon taxes levied on industrial users.

“The answer is NOT decarbonisation by deindustrialisation,” Ratcliffe wrote. “Without a strong manufacturing base, the economy will continue to decline. Soaring power prices and punitive carbon charges are driving industry out of the UK at an unsustainable pace.”

In further comments, Ratcliffe labelled carbon taxes as “an extremely foolish levy in the world,” contending they put UK plants at a competitive disadvantage against foreign rivals. Currently, most chemicals and plastics are excluded from the UK's initial carbon border adjustment mechanism.

Future 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 efficient chemical plants in Europe and to protect skilled jobs. The UK chemicals sector 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.”

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

He noted 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.

Records show that Ineos has in the past obtained significant tax breaks from the EU, worth hundreds of millions of euros—notably while Ratcliffe was a leading supporter of the campaign for the UK to exit the European Union.