Industrial Companies Controlled by Tycoon Sir Jim Ratcliffe Received Up to £70m in British Government Support Over the Last Four-Year Period
Before this week's £50m government bailout for its Scottish plant, industrial firms controlled by billionaire Sir Jim Ratcliffe were already awarded as much as £70m in British government support during the previous four-year period.
Latest Revelations and Financial Support
According to official data published recently, public funding to Ratcliffe's chemical empire in the last year alone ranged from £16m and £38m. From August 2022 onwards, the conglomerate has received a total of £28m and £70m.
The government stepped in this week to provide Ineos with £50m to support its Grangemouth operations, concerned that otherwise the UK would cease to have its sole facility manufacturing ethylene—a critical feedstock for plastics. The government also backed a £75m loan guarantee, while Ineos pledged to invest £30m of its private capital.
Refinery Shutdown and Wider Challenges
This intervention comes following Ineos shut down the adjacent 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.
The billionaire, with an estimated net worth of $14.5bn, is understood to have asked for government help in October. The request comes at a time when the wide-ranging Ineos group, controlled by the 73-year-old, has been under significant financial pressure, in part due to sharply increased energy costs following Russia's full-scale invasion of Ukraine.
Reflecting increasing concern over its ability to manage debt, the credit rating agency downgraded Ineos's credit rating in September. Ratcliffe has also been required to invest significant funds into his off-road vehicle venture and the turnaround of the football club, in which he holds a minority stake.
Nature of Aid and Company Statements
Most the previous state aid was delivered in the form of tax breaks in return for “voluntary agreements to reduce energy use and carbon dioxide emissions.” The value of these tax breaks for Ineos's plants in Grangemouth and Hull were given as estimates rather than exact amounts.
An Ineos representative stated the aid did not constitute “favourable terms” for the company, but was “awarded against strict criteria, and open to any UK business that meets the requirements.”
While Ratcliffe publicly welcomed the £50m support in an official statement, Ineos separately issued more critical comments. In these, the billionaire strongly criticised government policy, specifically carbon taxes paid by industrial users.
“The solution is not decarbonisation by deindustrialisation,” he stated. “Lacking a robust manufacturing base, the economy will continue to decline. Soaring power prices and burdensome carbon levies are pushing industry out of the UK at an unsustainable pace.”
Speaking elsewhere, Ratcliffe labelled carbon taxes as “the most idiotic tax in the world,” contending 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.
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 everyone relies on this industry every day. If we don't produce 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 Olefins & Polymers division, said the Grangemouth money would be used to improve energy efficiency, reduce carbon emissions, and upgrade plant performance.
He explained the site, which uses an ethylene cracker running on North Sea gas and US-sourced liquefied petroleum gas, had been under “intense strain” from rocketing energy costs and the UK's carbon taxes.
Records show that Ineos has previously received significant tax breaks from the EU, valued at hundreds of millions of euros—notably while Ratcliffe was a leading supporter of the campaign for the UK to exit the European Union.
