Industrial Companies Controlled by Tycoon Sir Jim Ratcliffe Received As Much As £70m in British Government Support In the Past Four Years
Before the recent £50m government bailout for its Scottish plant, chemical companies controlled by billionaire Sir Jim Ratcliffe were already awarded up to £70m in British government support over the past four years.
Latest Revelations and Financial Support
Based on government disclosures published recently, state aid to Ratcliffe's chemical empire in the last year alone was between £16m and £38m. From August 2022 onwards, the conglomerate has received a total of £28m and £70m.
The government stepped in on Tuesday to provide Ineos with £50m to support its Scottish ethylene plant, concerned that without it the UK would lose its last remaining facility manufacturing ethylene—a vital raw material for plastics. Officials additionally supported a £75m credit 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 huge blow to the local community and a political problem for the government.
The billionaire, with an estimated net worth of $14.5bn, reportedly asked for government help in October. The request coincides with the expansive Ineos group, under the control of the 73-year-old, has been under significant financial pressure, in part due to soaring energy costs following Russia's 2022 invasion of Ukraine.
In a sign of increasing concern over its ability to manage debt, the credit rating agency lowered Ineos's debt rating in September. Ratcliffe has also been required to invest significant funds into his Ineos Grenadier automotive project and efforts to revitalise the football club, in which he holds a partial ownership.
Form of Support and Official Responses
The majority of the previous state aid was delivered 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 exact amounts.
An Ineos representative said the aid did not represent “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 announcement, Ineos separately issued more critical comments. In these, the industrialist launched a broadside against government policy, including carbon taxes paid by industrial users.
“The answer is NOT decarbonisation by deindustrialisation,” he stated. “Without a strong manufacturing base, the economy will falter. Soaring power prices and punitive carbon charges 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,” arguing they place UK plants at a competitive disadvantage against foreign rivals. Currently, most chemicals and plastics are not covered from the UK's planned carbon import tax.
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 protect skilled jobs. The UK chemicals sector has had a very difficult year, yet everyone relies on this industry every day. Should we fail to manufacture these critical products 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, cut 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 “extreme pressure” from rocketing energy costs and the UK's carbon taxes.
Records show that Ineos has previously received significant tax breaks from the EU, worth hundreds of millions of euros—interestingly while Ratcliffe was a prominent backer of the campaign for the UK to leave the EU.