Chemical Companies Owned by Tycoon Sir Jim Ratcliffe Received As Much As £70m in British Government Support Over the Last Four-Year Period
Prior to this week's £50m state rescue package for its Scottish plant, industrial firms controlled by tycoon Sir 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 released this week, public funding to Ratcliffe's chemical empire in the last year alone ranged from £16m and £38m. From August 2022 onwards, the company has obtained between £28m and £70m.
Authorities intervened on Tuesday to grant Ineos with £50m to prop up its Scottish ethylene plant, concerned that without it the UK would lose its last remaining facility manufacturing ethylene—a critical feedstock for plastics. The government also backed a £75m loan guarantee, while Ineos pledged to invest £30m of its own funds.
Plant Closure and Broader Context
This intervention comes after Ineos shut down the adjacent oil refinery in late 2024, costing 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. This appeal comes at a time when the expansive Ineos group, under the control of the 73-year-old, has faced significant financial pressure, in part due to soaring energy costs in the wake of Russia's 2022 invasion of Ukraine.
Reflecting growing unease over its financial health, the credit rating agency downgraded Ineos's credit rating in September. Ratcliffe has also been required to invest significant funds into his Ineos Grenadier automotive project and the turnaround of Manchester United, in which he holds a minority stake.
Nature of Aid and Company Statements
The majority of the previous state aid came in the form of tax breaks in return for “voluntary agreements to reduce energy use and CO2 output.” Figures for these relief schemes for Ineos's plants in Grangemouth and Hull are reported as ranges rather than precise figures.
An Ineos representative 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 publicly welcomed the £50m support in an official statement, Ineos also released more critical comments. In these, the billionaire launched a broadside against 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 falter. High energy costs and punitive carbon charges are pushing industry out of the UK at an unsustainable pace.”
Speaking elsewhere, Ratcliffe labelled carbon taxes as “an extremely foolish levy in the world,” arguing they put UK plants at a competitive disadvantage against foreign rivals. It is noted that most chemicals and plastics are not covered from the UK's initial carbon border adjustment mechanism.
Investment and Environmental Pledges
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 safeguard skilled jobs. British industry has had a very difficult year, yet everyone relies on this industry every day. Should we fail to manufacture these essential materials in the UK, they are imported instead, often from more polluting operations abroad.”
Colin Pritchard, head of sustainability for the company's Olefins & Polymers division, indicated the Grangemouth money would be used to improve energy efficiency, reduce carbon emissions, and upgrade overall performance.
He noted 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 in the past obtained substantial tax breaks from the EU, valued at hundreds of millions of euros—notably while Ratcliffe was a prominent backer of the campaign for the UK to leave the EU.
