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Before this week's £50m government bailout for its Scottish plant, industrial firms controlled by billionaire Sir Jim Ratcliffe had already been granted up to £70m in UK state aid over the past four years.

Recent Revelations and Financial Support

According to official data published this week, state aid to Ratcliffe's chemical empire in the last year alone ranged from £16m and £38m. Since August 2022, the company has received a total of £28m and £70m.

Authorities intervened this week to grant Ineos with £50m to support its Grangemouth operations, concerned that otherwise the UK would lose its sole facility producing ethylene—a critical raw material for plastics. The government also backed a £75m loan guarantee, while Ineos committed to invest £30m of its own funds.

Plant Closure and Broader Context

This support comes following Ineos closed the adjacent oil refinery in September 2024, costing 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 asked for government help in October. The request coincides with the wide-ranging Ineos group, controlled by the 73-year-old, has faced significant financial pressure, partly due to sharply increased energy costs following Russia's 2022 invasion of Ukraine.

Reflecting growing unease over its financial health, Fitch Ratings lowered Ineos's credit rating in September. Ratcliffe has also had to commit substantial resources into his off-road vehicle venture and the turnaround of the football club, in which he holds a minority stake.

Form of Support and Company Statements

Most the earlier government support came in the form of tax breaks in return for “voluntary agreements to reduce energy use and CO2 output.” The value of these tax breaks for Ineos's plants in Grangemouth and Hull were given as estimates rather than exact amounts.

An Ineos spokesperson said the aid did not constitute “favourable terms” for the company, but was “granted based on strict criteria, and available 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 launched a broadside against government policy, specifically carbon taxes levied on industrial users.

“The answer is NOT decarbonisation by deindustrialisation,” Ratcliffe wrote. “Without a strong manufacturing base, the economy will falter. Soaring power prices and punitive carbon charges are driving industry out of the UK at an alarming rate.”

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. Currently, most chemicals and plastics are excluded from the UK's planned carbon import tax.

Future Environmental Pledges

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. The UK chemicals sector has had a brutal year, yet society depends on this industry every day. Should we fail to manufacture these essential materials in the UK, they are imported instead, often from higher-carbon production abroad.”

Colin Pritchard, head of sustainability for the company's chemicals unit, said the Grangemouth money would be used to improve energy efficiency, reduce carbon emissions, and upgrade overall 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 in the past obtained substantial tax breaks from the EU, worth hundreds of millions of euros—notably while Ratcliffe was a prominent backer of the campaign for the UK to leave the EU.