Chemical Firms Owned by Tycoon Sir Jim Ratcliffe Received As Much As £70m in UK Government Support In the Past Four Years
Before the recent £50m government bailout for its Scottish plant, industrial firms under the ownership of tycoon Jim Ratcliffe had already been granted as much as £70m in UK state aid during the previous four-year period.
Recent Disclosures and Financial Support
Based on government disclosures released this week, state aid to Ratcliffe's chemical empire in the last year alone ranged from £16m and £38m. Since August 2022, the company has obtained a total of £28m and £70m.
The government stepped in this week to grant Ineos with £50m to prop up its Scottish ethylene plant, fearing that without it the UK would lose its sole facility manufacturing ethylene—a critical feedstock for plastics. The government also backed a £75m credit guarantee, while Ineos pledged to invest £30m of its private capital.
Plant Closure and Wider Challenges
This support comes following Ineos closed the adjacent oil refinery in late 2024, resulting in the loss of 400 jobs—a move described as a huge blow to the area and a challenge for the government.
The billionaire, with an estimated net worth of $14.5bn, is understood to have asked for government help in October. This appeal comes at a time when the expansive Ineos group, controlled by the 73-year-old, has been under considerable economic strain, in part due to sharply increased energy costs in the wake of Russia's full-scale invasion of Ukraine.
Reflecting growing unease over its ability to manage debt, the credit rating agency lowered Ineos's debt rating in September. Ratcliffe has also had to commit substantial resources into his off-road vehicle venture and the turnaround of Manchester United, in which he holds a minority stake.
Nature of Aid and Company Statements
The majority of the previous state aid was delivered in the form of tax breaks in exchange for “commitments to reduce energy use and carbon dioxide emissions.” Figures for these relief schemes for Ineos's sites in Grangemouth and Hull are reported as ranges 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 available to any UK business that qualifies.”
While Ratcliffe thanked the government for the £50m support in an announcement, Ineos separately issued sharper remarks. In these, the industrialist launched a broadside against government policy, specifically carbon taxes levied on industrial users.
“The answer is NOT decarbonisation by deindustrialisation,” he stated. “Lacking a robust 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.”
Speaking elsewhere, Ratcliffe labelled carbon taxes as “the most idiotic tax in the world,” arguing they place UK plants at a competitive disadvantage against international competitors. Currently, most chemicals and plastics are excluded from the UK's planned carbon border adjustment mechanism.
Future Environmental Pledges
The Ineos representative added: “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 everyone relies on this industry every day. If we don't produce 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, indicated the new funding would be used to enhance energy efficiency, cut carbon emissions, and upgrade plant performance.
He noted the site, which uses an ethylene cracker running on North Sea gas and imported liquefied petroleum gas, had been under “extreme pressure” from rocketing energy costs and the UK's carbon taxes.
It has also been reported that Ineos has in the past obtained significant 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.