Industrial Companies Controlled by Tycoon Sir Jim Ratcliffe Obtained As Much As £70m in British Government Support In the Last Four-Year Period
Prior to this week's £50m state rescue package for its Scottish plant, chemical companies under the ownership of billionaire Jim Ratcliffe had already been granted as much as £70m in UK state aid during the previous four-year period.
Recent Revelations and Financial Support
According to official data 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 obtained a total of £28m and £70m.
The government stepped in on Tuesday to grant Ineos with £50m to prop up 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.
Refinery Shutdown and Wider Challenges
This intervention comes after Ineos shut down the adjacent oil refinery in September 2024, resulting in the loss of 400 jobs—a move described as a huge blow to the area and a political problem for the government.
Ratcliffe, who is worth $14.5bn, reportedly requested 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 been under significant financial pressure, partly due to sharply increased energy costs following Russia's full-scale invasion of Ukraine.
In a sign of increasing concern over its ability to manage debt, Fitch Ratings downgraded Ineos's debt rating in September. Ratcliffe has also had to commit significant funds into his off-road vehicle venture and the turnaround of the football club, in which he holds a partial ownership.
Form of Support and Official Responses
The majority of the previous state aid came in the form of tax relief in return for “commitments to curb consumption and CO2 output.” The value of these relief schemes for Ineos's plants in Grangemouth and Hull were given as estimates rather than precise figures.
An Ineos representative stated the aid did not represent “special treatment” for the company, but was “granted based on strict criteria, and open to any UK business that meets the requirements.”
While Ratcliffe publicly welcomed the £50m support in an announcement, Ineos separately issued sharper remarks. In these, the billionaire strongly criticised government policy, including carbon taxes paid by industrial users.
“The answer is NOT decarbonisation by deindustrialisation,” Ratcliffe wrote. “Without a strong manufacturing base, the economy will continue to decline. Soaring power prices and burdensome carbon levies are driving industry out of the UK at an alarming rate.”
In further comments, Ratcliffe described carbon taxes as “an extremely foolish levy in the world,” contending they put UK plants at a disadvantage against international competitors. Currently, most chemicals and plastics are not covered from the UK's planned carbon import tax.
Future Sustainability Claims
The Ineos representative further stated: “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 protect skilled jobs. The UK chemicals sector has had a very difficult year, yet society depends 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 Olefins & Polymers division, said the Grangemouth money would be used to improve energy efficiency, cut carbon emissions, and boost overall performance.
He noted the site, which uses an processing unit running on North Sea gas and imported 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, valued at hundreds of millions of euros—interestingly while Ratcliffe was a prominent backer of the campaign for the UK to exit the European Union.
