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Before this week's £50m government bailout for its Grangemouth facility, industrial firms under the ownership of billionaire Jim Ratcliffe had already been granted up to £70m in British government support during the previous four-year period.

Latest Revelations and Financial Support

Based on official data published this week, 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 this week to provide Ineos with £50m to support its Scottish ethylene plant, fearing that otherwise the UK would lose its last remaining facility manufacturing ethylene—a critical feedstock for plastics. Officials additionally supported a £75m credit guarantee, while Ineos pledged to invest £30m of its own funds.

Refinery Shutdown and Wider Challenges

This support arrives following Ineos shut down the adjacent oil refinery in September 2024, costing 400 jobs—a move described as a huge blow to the local community and a political problem for the government.

Ratcliffe, who is worth $14.5bn, is understood to have requested government help in October. The request coincides with the wide-ranging Ineos group, under the control of the 73-year-old, has faced significant financial pressure, in part due to sharply increased energy costs following Russia's 2022 invasion of Ukraine.

Reflecting increasing concern over its financial health, the credit rating agency lowered Ineos's credit rating in September. Ratcliffe has also been required to invest 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

The majority of the previous state aid was delivered in the form of tax breaks in return for “commitments to reduce energy use and CO2 output.” Figures for these relief schemes for Ineos's sites in Grangemouth and Hull were given as estimates rather than exact amounts.

An Ineos spokesperson said the aid did not represent “special treatment” for the company, but was “granted based on strict criteria, and available to any UK business that meets the requirements.”

While Ratcliffe thanked the government for the £50m support in an announcement, Ineos separately issued more critical comments. In these, the billionaire launched a broadside against government policy, including carbon taxes paid by industrial users.

“The solution is not decarbonisation by deindustrialisation,” Ratcliffe wrote. “Without a strong manufacturing base, the economy will continue to decline. High energy costs and punitive carbon charges are driving industry out of the UK at an unsustainable pace.”

In further comments, Ratcliffe described carbon taxes as “the most idiotic tax in the world,” contending they place UK plants at a competitive disadvantage against foreign rivals. Currently, most chemicals and plastics are excluded from the UK's initial carbon border adjustment mechanism.

Future Environmental Pledges

The Ineos spokesperson further stated: “Ineos has invested over £400m at Grangemouth in the last five years to keep it as one of the most efficient chemical plants in Europe and to protect skilled jobs. British industry has had a very difficult 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 enhance energy efficiency, cut carbon emissions, and boost overall performance.

He explained 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.

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 leave the EU.