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Before 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 British government support over the past four years.

Latest Revelations and Financial Support

According to government disclosures published recently, public funding to the Ineos group in the last year alone ranged from £16m and £38m. Since August 2022, the company has obtained between £28m and £70m.

The government stepped in this week to grant Ineos with £50m to support its Scottish ethylene plant, fearing that otherwise the UK would lose its sole facility producing ethylene—a critical raw material for plastics. The government also backed a £75m loan guarantee, while Ineos committed to invest £30m of its own funds.

Plant Closure and Wider Challenges

This intervention arrives following Ineos shut down the neighbouring oil refinery in September 2024, costing 400 jobs—a move described as a huge blow to the area and a challenge for the government.

Ratcliffe, who is worth $14.5bn, reportedly requested government help in October. This appeal coincides with the wide-ranging Ineos group, under the control of the 73-year-old, has faced considerable economic strain, partly due to soaring 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 downgraded 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 minority stake.

Form of Support and Company Statements

Most the earlier government support came in the form of tax relief in exchange for “commitments to curb consumption and CO2 output.” Figures for these relief schemes for Ineos's sites in Grangemouth and Hull were given as estimates rather than exact amounts.

An Ineos spokesperson said the aid did not constitute “favourable terms” for the company, but was “awarded against strict criteria, and open to any UK business that meets the requirements.”

While Ratcliffe publicly welcomed the £50m support in an official statement, Ineos separately issued sharper remarks. In these, the industrialist strongly criticised government policy, including carbon taxes levied on industrial users.

“The solution is not decarbonisation by deindustrialisation,” he stated. “Lacking a robust manufacturing base, the economy will falter. High energy costs and punitive carbon charges 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,” arguing they place UK plants at a competitive disadvantage against international competitors. Currently, most chemicals and plastics are excluded from the UK's initial carbon border adjustment mechanism.

Investment and Environmental Pledges

The Ineos spokesperson further stated: “Ineos has invested over £400m at Grangemouth in the last five years to keep it as one of the most productive chemical plants in Europe and to safeguard skilled jobs. British industry has had a brutal year, yet society depends 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 Grangemouth money would be used to improve energy efficiency, reduce carbon emissions, and upgrade plant performance.

He noted the site, which uses an ethylene cracker running on North Sea gas and US-sourced liquefied petroleum gas, had been under “intense strain” from surging energy costs and the UK's carbon taxes.

Records show 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.