Industrial Firms Controlled by Tycoon Sir Jim Ratcliffe Received As Much As £70m in British Government Support In the Last Four-Year Period
Before the recent £50m state rescue package for its Scottish plant, industrial firms under the ownership of billionaire Sir Jim Ratcliffe had already been granted up to £70m in British government support over the past four years.
Recent Disclosures and Bailout Package
Based on official data published recently, public funding to Ratcliffe's chemical empire in the last year alone ranged from £16m and £38m. Since August 2022, the company has obtained a total of £28m and £70m.
The government stepped in on Tuesday to grant Ineos with £50m to prop up its Grangemouth operations, fearing that otherwise the UK would lose its last remaining 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.
Refinery Shutdown and Broader Context
This intervention arrives after Ineos closed the neighbouring oil refinery in late 2024, resulting in the loss of 400 jobs—a move described as a significant setback to the local community and a challenge for the government.
Ratcliffe, who is worth $14.5bn, reportedly asked for government assistance in October. The request comes at a time when the wide-ranging 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.
Reflecting increasing concern over its financial health, the credit rating agency downgraded 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 earlier government support was delivered in the form of tax breaks in return for “commitments to reduce energy use and CO2 output.” The value of these tax breaks for Ineos's sites in Grangemouth and Hull were given as estimates rather than exact amounts.
An Ineos spokesperson stated 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 sharper remarks. In these, the industrialist launched a broadside against government policy, including carbon taxes paid by industrial users.
“The answer is NOT decarbonisation by deindustrialisation,” he stated. “Without a strong manufacturing base, the economy will continue to decline. High energy costs and burdensome carbon levies are driving industry out of the UK at an alarming rate.”
Speaking elsewhere, Ratcliffe described carbon taxes as “an extremely foolish levy in the world,” contending 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 planned carbon border adjustment mechanism.
Investment and Environmental Pledges
The Ineos spokesperson added: “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. The UK chemicals sector has had a brutal year, yet everyone relies on this industry every day. Should we fail to manufacture these critical products in the UK, they are imported instead, often from more polluting operations abroad.”
A senior Ineos executive, head of sustainability for the company's Olefins & Polymers division, said the Grangemouth money would be used to enhance energy efficiency, cut carbon emissions, and upgrade overall performance.
He noted the site, which uses an processing unit 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—interestingly while Ratcliffe was a prominent backer of the campaign for the UK to leave the EU.
