Chemical Firms Owned by Tycoon Jim Ratcliffe Received Up to £70m in British State Aid Over the Past Four Years
Prior to the recent £50m state rescue package for its Grangemouth facility, chemical companies under the ownership of billionaire Sir Jim Ratcliffe had already been granted as much as £70m in British government support over the past four years.
Recent Disclosures and Financial Support
According to 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.
Authorities intervened 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 feedstock 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 intervention arrives after Ineos shut down 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.
Ratcliffe, who is worth $14.5bn, is understood to have requested government assistance 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 sharply increased energy costs in the wake of Russia's full-scale invasion of Ukraine.
Reflecting growing unease over its financial health, the credit rating agency downgraded Ineos's debt rating in September. Ratcliffe has also been required to invest significant funds into his off-road vehicle venture and efforts to revitalise Manchester United, in which he holds a minority stake.
Nature of Aid and Company Statements
Most the previous state aid came in the form of tax relief in exchange for “commitments to reduce energy use and carbon dioxide emissions.” Figures for these tax breaks for Ineos's sites in Grangemouth and Hull are reported as ranges rather than exact amounts.
An Ineos spokesperson stated the aid did not constitute “special treatment” for the company, but was “awarded against strict criteria, and available to any UK business that meets the requirements.”
Although Ratcliffe thanked the government for the £50m support in an official statement, Ineos separately issued sharper remarks. In these, the billionaire strongly criticised government policy, specifically carbon taxes levied on industrial users.
“The answer is NOT decarbonisation by deindustrialisation,” Ratcliffe wrote. “Lacking a robust manufacturing base, the economy will falter. 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,” arguing they place UK plants at a competitive disadvantage against foreign rivals. It is noted that most chemicals and plastics are excluded from the UK's initial carbon border adjustment mechanism.
Investment and Sustainability Claims
The Ineos representative 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. British industry 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 more polluting operations abroad.”
Colin Pritchard, head of sustainability for the company's chemicals unit, said the new funding would be used to enhance energy efficiency, cut carbon emissions, and boost overall performance.
He explained the site, which uses an processing unit 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 previously received substantial tax breaks from the EU, valued at hundreds of millions of euros—notably while Ratcliffe was a leading supporter of the campaign for the UK to leave the EU.
