Chemical Companies Owned by Tycoon Sir Jim Ratcliffe Obtained As Much As £70m in British Government Support In the Past Four Years
Prior to this week's £50m government bailout for its Grangemouth facility, chemical companies under the ownership of billionaire Sir Jim Ratcliffe were already awarded up to £70m in UK state aid over the past four years.
Recent Disclosures and Financial Support
Based on government disclosures published recently, public funding to Ratcliffe's chemical empire in the most recent year ranged from £16m and £38m. Since August 2022, the company has received between £28m and £70m.
The government stepped in this week to provide Ineos with £50m to prop up its Scottish ethylene plant, fearing that without it the UK would cease to have its sole facility manufacturing ethylene—a vital 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 Wider Challenges
This support arrives following Ineos closed the adjacent oil refinery in late 2024, costing 400 jobs—a move described as a significant setback to the local community and a challenge for the government.
The billionaire, with an estimated net worth of $14.5bn, reportedly 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 been under significant financial pressure, partly due to soaring energy costs in the wake of Russia's full-scale invasion of Ukraine.
Reflecting growing unease over its financial health, Fitch Ratings lowered Ineos's debt rating in September. Ratcliffe has also been required to invest substantial resources into his Ineos Grenadier automotive project and efforts to revitalise Manchester United, in which he holds a partial ownership.
Nature of Aid and Company Statements
The majority of the previous state aid came in the form of tax breaks in exchange for “commitments to reduce energy use and carbon dioxide emissions.” The value of these tax breaks for Ineos's sites in Grangemouth and Hull were given as estimates rather than exact amounts.
An Ineos representative said the aid did not constitute “favourable terms” for the company, but was “granted based on strict criteria, and open to any UK business that meets the requirements.”
While Ratcliffe thanked the government for the £50m support in an announcement, Ineos also released more critical comments. In these, the billionaire launched a broadside against government policy, specifically carbon taxes levied on industrial users.
“The solution is not decarbonisation by deindustrialisation,” Ratcliffe wrote. “Lacking a robust manufacturing base, the economy will continue to decline. High energy costs and burdensome carbon levies are pushing industry out of the UK at an alarming rate.”
Speaking elsewhere, Ratcliffe labelled carbon taxes as “the most idiotic tax in the world,” contending they put UK plants at a competitive disadvantage against international competitors. Currently, 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 maintain its status as one of the most efficient 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. If we don't produce these essential materials 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, indicated the Grangemouth money would be used to enhance energy efficiency, cut carbon emissions, and boost plant 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 surging energy costs and the UK's carbon taxes.
It has also been reported that Ineos has in the past obtained 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.
