Industrial Companies Controlled by Tycoon Sir Jim Ratcliffe Received Up to £70m in UK Government Support In the Past Four Years
Prior to this week's £50m state rescue package for its Scottish plant, chemical companies under the ownership of tycoon Jim Ratcliffe were already awarded up to £70m in UK state aid during the previous four-year period.
Recent Revelations 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. From August 2022 onwards, the company has received between £28m and £70m.
Authorities intervened this week to provide Ineos with £50m to prop up its Grangemouth operations, fearing that without it the UK would lose its last remaining facility producing 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.
Refinery Shutdown and Broader Context
This support arrives following Ineos closed the neighbouring oil refinery in September 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.
The billionaire, with an estimated net worth of $14.5bn, is understood to have requested government help in October. The request coincides with the expansive Ineos group, controlled by the 73-year-old, has been under significant financial pressure, in part due to sharply increased energy costs in the wake of Russia's 2022 invasion of Ukraine.
In a sign of increasing concern over its financial health, 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 Manchester United, in which he holds a partial ownership.
Form of Support and Company Statements
Most the earlier government support came in the form of tax relief in exchange for “commitments to curb consumption and CO2 output.” Figures for these relief schemes for Ineos's plants 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 “granted based on strict criteria, and open to any UK business that meets the requirements.”
Although Ratcliffe publicly welcomed the £50m support in an official statement, Ineos separately issued sharper remarks. In these, the billionaire launched a broadside against government policy, specifically carbon taxes paid by 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 pushing industry out of the UK at an alarming rate.”
Speaking elsewhere, Ratcliffe described carbon taxes as “the most idiotic tax in the world,” arguing they put UK plants at a disadvantage against international competitors. 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 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 protect skilled jobs. British industry 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 imported instead, often from higher-carbon production abroad.”
A senior Ineos executive, head of sustainability for the company's chemicals unit, said the Grangemouth money would be used to enhance energy efficiency, cut carbon emissions, and boost plant performance.
He explained the site, which uses an ethylene cracker utilising 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 previously received substantial tax breaks from the EU, worth hundreds of millions of euros—interestingly while Ratcliffe was a leading supporter of the campaign for the UK to leave the EU.
