Industrial Firms Controlled by Tycoon Sir Jim Ratcliffe Obtained Up to £70m in UK Government Support Over the Past Four Years

Prior to the recent £50m state rescue package for its Grangemouth facility, chemical companies controlled by billionaire Sir Jim Ratcliffe had already been granted up to £70m in UK state aid over the past four years.

Latest Revelations and Financial Support

According to government disclosures published this week, public funding to the Ineos group in the last year alone ranged from £16m and £38m. From August 2022 onwards, the conglomerate has obtained between £28m and £70m.

The government stepped in on Tuesday to provide Ineos with £50m to support its Grangemouth operations, concerned that otherwise the UK would lose its sole facility producing ethylene—a vital feedstock for plastics. Officials additionally supported a £75m loan guarantee, while Ineos committed to invest £30m of its own funds.

Refinery Shutdown and Wider Challenges

This intervention arrives after Ineos closed the neighbouring oil refinery in September 2024, costing 400 jobs—a move described as a significant setback to the local community and a political problem for the government.

The billionaire, with an estimated net worth of $14.5bn, is understood to have asked for government assistance in October. This appeal coincides with the wide-ranging Ineos group, under the control of the 73-year-old, has faced significant financial pressure, in part due to soaring energy costs in the wake of Russia's 2022 invasion of Ukraine.

In a sign of growing unease over its financial health, the credit rating agency lowered Ineos's debt rating in September. Ratcliffe has also been required to invest substantial resources into his Ineos Grenadier automotive project and the turnaround of Manchester United, in which he holds a minority stake.

Form of Support and Company Statements

The majority of the earlier government support was delivered in the form of tax relief in return for “voluntary agreements to curb consumption and carbon dioxide emissions.” The value of these relief schemes for Ineos's sites in Grangemouth and Hull are reported as ranges rather than exact amounts.

An Ineos representative 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.”

While Ratcliffe thanked the government for the £50m support in an announcement, Ineos separately issued more critical comments. In these, the billionaire strongly criticised 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 continue to decline. High energy costs and punitive carbon charges are pushing industry out of the UK at an alarming rate.”

Speaking elsewhere, Ratcliffe labelled carbon taxes as “an extremely foolish levy in the world,” contending they put UK plants at a disadvantage against foreign rivals. Currently, most chemicals and plastics are not covered from the UK's initial carbon import tax.

Future 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 productive chemical plants in Europe and to safeguard skilled jobs. The UK chemicals sector has had a brutal year, yet everyone relies on this industry every day. If we don't produce these critical products in the UK, they are brought in from overseas, often from higher-carbon production abroad.”

A senior Ineos executive, head of sustainability for the company's Olefins & Polymers division, said the Grangemouth money would be used to enhance energy efficiency, reduce carbon emissions, and upgrade plant performance.

He explained the site, which uses an ethylene cracker utilising North Sea gas and imported 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 in the past obtained 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 exit the European Union.