Chemical Companies Controlled by Tycoon Jim Ratcliffe Obtained As Much As £70m in UK Government Support In the Past Four Years
Before this week's £50m government bailout for its Grangemouth facility, industrial firms under the ownership of billionaire Jim Ratcliffe were already awarded as much as £70m in British government support over the past four years.
Latest Disclosures and Financial Support
According to government disclosures published recently, public funding to Ratcliffe's chemical empire in the most recent year ranged from £16m and £38m. Since August 2022, the company has received a total of £28m and £70m.
Authorities intervened on Tuesday to provide Ineos with £50m to prop up its Grangemouth operations, fearing that without it the UK would lose its last remaining facility manufacturing 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.
Refinery Shutdown and Broader Context
This support arrives following Ineos shut down the neighbouring oil refinery in September 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 help in October. This appeal comes at a time when the expansive Ineos group, under the control of the 73-year-old, has faced significant financial pressure, partly due to sharply increased energy costs in the wake of Russia's full-scale invasion of Ukraine.
Reflecting increasing concern 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 the football club, in which he holds a minority stake.
Nature of Aid and Company Statements
The majority of the previous state aid came in the form of tax breaks in return for “voluntary agreements 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 meets the requirements.”
Although Ratcliffe publicly welcomed the £50m support in an official statement, Ineos also released more critical comments. In these, the industrialist launched a broadside against government policy, including 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 burdensome carbon levies are driving industry out of the UK at an alarming rate.”
In further comments, Ratcliffe labelled carbon taxes as “the most idiotic tax in the world,” contending they put 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.
Future Environmental Pledges
The Ineos spokesperson added: “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 everyone relies on this industry every day. Should we fail to manufacture these critical products in the UK, they are imported instead, often from more polluting operations abroad.”
Colin Pritchard, head of sustainability for the company's chemicals unit, indicated the Grangemouth money would be used to improve energy efficiency, cut carbon emissions, and boost overall performance.
He explained 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.
It has also been reported 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 leave the EU.