Chemical Companies Controlled by Billionaire Jim Ratcliffe Obtained As Much As £70m in British State Aid Over the Past Four Years

Before this week's £50m government bailout for its Scottish plant, chemical companies controlled by billionaire Sir Jim Ratcliffe had already been granted up to £70m in British government support during the previous four-year period.

Latest Revelations and Bailout Package

According to government disclosures published this week, public funding to Ratcliffe's chemical empire in the last year alone was between £16m and £38m. Since August 2022, the company has received between £28m and £70m.

The government stepped in on Tuesday to provide Ineos with £50m to support its Grangemouth operations, concerned that otherwise the UK would cease to have its sole facility producing ethylene—a vital raw material for plastics. Officials additionally supported a £75m loan guarantee, while Ineos pledged to invest £30m of its own funds.

Plant Closure and Broader Context

This intervention arrives after Ineos shut down the adjacent 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 asked for government assistance in October. The request coincides with the wide-ranging Ineos group, under the control of the 73-year-old, has faced considerable economic strain, partly 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 debt rating in September. Ratcliffe has also been required to invest substantial resources into his off-road vehicle venture and efforts to revitalise the football club, in which he holds a minority stake.

Nature of Aid and Company Statements

Most the previous state aid came in the form of tax relief in return for “commitments to curb consumption and carbon dioxide emissions.” The value of these tax breaks for Ineos's sites in Grangemouth and Hull were given as estimates rather than precise figures.

An Ineos spokesperson said the aid did not constitute “special treatment” 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 official statement, Ineos also released more critical comments. In these, the billionaire launched a broadside against government policy, including carbon taxes paid by industrial users.

“The answer is NOT decarbonisation by deindustrialisation,” Ratcliffe wrote. “Lacking a robust manufacturing base, the economy will falter. Soaring power prices and punitive carbon charges are pushing industry out of the UK at an alarming rate.”

Speaking elsewhere, Ratcliffe described carbon taxes as “an extremely foolish levy in the world,” arguing they put UK plants at a disadvantage against international competitors. It is noted that most chemicals and plastics are excluded from the UK's initial carbon border adjustment mechanism.

Future Sustainability Claims

The Ineos spokesperson 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 brutal year, yet everyone relies on this industry every day. Should we fail to manufacture these critical products in the UK, they are brought in from overseas, often from more polluting operations abroad.”

Colin Pritchard, head of sustainability for the company's chemicals unit, indicated the Grangemouth money would be used to improve energy efficiency, cut carbon emissions, and boost overall performance.

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

It has also been reported 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 exit the European Union.