🔗 Share this article Chemical Firms Controlled by Tycoon Jim Ratcliffe Received As Much As £70m in British Government Support Over the Last Four-Year Period Before this week's £50m government bailout for its Scottish plant, chemical companies under the ownership of billionaire Jim Ratcliffe were already awarded as much as £70m in UK state aid during the previous four-year period. Latest Disclosures and Financial Support According to official data published recently, public funding to the Ineos group in the last year alone ranged from £16m and £38m. From August 2022 onwards, the company has received between £28m and £70m. The government stepped in on Tuesday to grant Ineos with £50m to support its Grangemouth operations, fearing that otherwise the UK would cease to have its last remaining facility producing ethylene—a critical feedstock for plastics. The government also backed a £75m credit guarantee, while Ineos pledged to invest £30m of its own funds. Refinery Shutdown and Broader Context This support arrives following Ineos closed the neighbouring oil refinery in September 2024, resulting in the loss of 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, 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 full-scale invasion of Ukraine. Reflecting growing unease over its financial health, Fitch Ratings lowered Ineos's debt rating in September. Ratcliffe has also had to commit substantial resources into his Ineos Grenadier automotive project and the turnaround of the football club, in which he holds a partial ownership. Form of Support and Company Statements The majority of the earlier government support was delivered in the form of tax breaks in return 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 precise figures. An Ineos representative said the aid did not constitute “special treatment” for the company, but was “awarded against strict criteria, and open to any UK business that meets the requirements.” Although Ratcliffe thanked the government for the £50m support in an official statement, Ineos also released more critical comments. In these, the industrialist strongly criticised government policy, including carbon taxes levied on industrial users. “The answer 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 unsustainable pace.” In further comments, Ratcliffe described carbon taxes as “the most idiotic tax in the world,” contending they put UK plants at a competitive disadvantage against international competitors. It is noted that most chemicals and plastics are excluded 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 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 critical products in the UK, they are imported instead, often from higher-carbon production abroad.” A senior Ineos executive, head of sustainability for the company's chemicals unit, indicated the Grangemouth money would be used to enhance energy efficiency, reduce carbon emissions, and upgrade overall performance. He explained the site, which uses an processing unit running on North Sea gas and imported liquefied petroleum gas, had been under “extreme pressure” from surging energy costs and the UK's carbon taxes. It has also been reported that Ineos has previously received significant 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 leave the EU.