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Before the recent £50m government bailout for its Scottish plant, chemical companies under the ownership of billionaire Sir Jim Ratcliffe were already awarded as much as £70m in UK state aid over the past four years.

Latest Disclosures and Financial Support

According to official data published recently, state aid to the Ineos group in the last year alone was between £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 prop up its Grangemouth operations, fearing that without it the UK would cease to have its last remaining facility producing ethylene—a vital raw material for plastics. The government also backed a £75m credit guarantee, while Ineos committed to invest £30m of its private capital.

Plant Closure and Wider Challenges

This intervention comes after Ineos shut down the neighbouring oil refinery in late 2024, resulting in the loss of 400 jobs—a move described as a significant setback to the area and a challenge for the government.

Ratcliffe, who is worth $14.5bn, is understood to have requested government assistance in October. This appeal coincides with the wide-ranging Ineos group, controlled by the 73-year-old, has been under significant financial pressure, partly due to sharply increased 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 off-road vehicle venture and efforts to revitalise the football club, in which he holds a partial ownership.

Nature of Aid and Company Statements

The majority of the previous state aid was delivered in the form of tax relief in return for “voluntary agreements to curb consumption and carbon dioxide emissions.” Figures for these tax breaks for Ineos's plants in Grangemouth and Hull are reported as ranges rather than precise figures.

An Ineos spokesperson stated the aid did not represent “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 also released sharper remarks. In these, the billionaire launched a broadside against government policy, specifically carbon taxes levied on industrial users.

“The answer is NOT decarbonisation by deindustrialisation,” Ratcliffe wrote. “Without a strong manufacturing base, the economy will continue to decline. Soaring power prices and burdensome carbon levies are pushing industry out of the UK at an unsustainable pace.”

Speaking elsewhere, Ratcliffe labelled carbon taxes as “an extremely foolish levy in the world,” arguing they place 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 import tax.

Investment and Environmental Pledges

The Ineos spokesperson 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 safeguard skilled jobs. The UK chemicals sector 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 brought in from overseas, often from more polluting operations abroad.”

Colin Pritchard, head of sustainability for the company's Olefins & Polymers division, said the new funding would be used to enhance energy efficiency, reduce carbon emissions, and boost overall performance.

He noted the site, which uses an processing unit utilising North Sea gas and imported liquefied petroleum gas, had been under “extreme pressure” from surging energy costs and the UK's carbon taxes.

Records show that Ineos has previously received substantial 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 exit the European Union.