Industrial Companies Controlled by Billionaire Sir Jim Ratcliffe Obtained Up to £70m in UK State Aid Over the Past Four Years

Prior to the recent £50m government bailout for its Grangemouth facility, chemical companies under the ownership of billionaire Jim Ratcliffe had already been granted as much as £70m in British government support during the previous four-year period.

Latest Revelations and Financial Support

Based on government disclosures published recently, state aid to Ratcliffe's chemical empire in the last year alone ranged from £16m and £38m. Since August 2022, the company has received between £28m and £70m.

Authorities intervened this week to provide Ineos with £50m to prop up its Grangemouth operations, concerned that otherwise the UK would cease to have its sole facility manufacturing ethylene—a vital raw material for plastics. The government also backed a £75m credit guarantee, while Ineos committed to invest £30m of its own funds.

Plant Closure and Broader Context

This support arrives after Ineos shut down the neighbouring oil refinery in late 2024, resulting in the loss of 400 jobs—a move described as a significant setback to the area and a political problem for the government.

Ratcliffe, who is worth $14.5bn, reportedly requested government help in October. The request coincides with the wide-ranging Ineos group, under the control of the 73-year-old, has been under considerable economic strain, in part due to sharply increased energy costs in the wake of Russia's 2022 invasion of Ukraine.

In a sign of growing unease over its financial health, the credit rating agency downgraded Ineos's debt rating in September. Ratcliffe has also been required to invest significant funds into his Ineos Grenadier automotive project and the turnaround of Manchester United, in which he holds a minority stake.

Nature of Aid and Company Statements

The majority of the earlier government support came in the form of tax relief in return for “commitments to curb consumption and carbon dioxide emissions.” Figures for these relief schemes for Ineos's plants in Grangemouth and Hull were given as estimates rather than exact amounts.

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

Although Ratcliffe thanked the government for the £50m support in an announcement, Ineos separately issued more critical comments. In these, the industrialist strongly criticised government policy, including carbon taxes levied on industrial users.

“The answer is NOT decarbonisation by deindustrialisation,” Ratcliffe wrote. “Without a strong manufacturing base, the economy will falter. High energy costs and burdensome carbon levies are driving 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 put UK plants at a disadvantage against foreign rivals. It is noted that most chemicals and plastics are not covered from the UK's initial carbon import tax.

Future 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 protect skilled jobs. British industry has had a very difficult year, yet everyone relies on this industry every day. If we don't produce these critical products in the UK, they are imported instead, often from higher-carbon production 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 boost overall performance.

He explained the site, which uses an processing unit utilising North Sea gas and US-sourced liquefied petroleum gas, had been under “extreme pressure” from rocketing energy costs and the UK's carbon taxes.

Records show that Ineos has previously received 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.