Industrial Firms Controlled by Tycoon Sir Jim Ratcliffe Received As Much As £70m in UK State Aid In the Last Four-Year Period
Before this week's £50m state rescue package for its Scottish plant, industrial firms controlled by billionaire Sir Jim Ratcliffe were already awarded up to £70m in British government support over the past four years.
Recent Revelations and Financial Support
Based on government disclosures published recently, state aid to the Ineos group in the most recent year was between £16m and £38m. From August 2022 onwards, the company has obtained a total of £28m and £70m.
The government stepped in on Tuesday to provide Ineos with £50m to support its Grangemouth operations, concerned that without it the UK would cease to have its last remaining facility manufacturing ethylene—a vital feedstock for plastics. Officials additionally supported a £75m loan guarantee, while Ineos pledged to invest £30m of its private capital.
Refinery Shutdown and Broader Context
This intervention arrives following Ineos shut down the adjacent oil refinery in September 2024, resulting in the loss of 400 jobs—a move described as a significant setback to the area and a political problem for the government.
Ratcliffe, who is worth $14.5bn, is understood to have asked for government help in October. This appeal coincides with the expansive Ineos group, under the control of the 73-year-old, has faced significant financial pressure, partly due to sharply increased energy costs following Russia's full-scale invasion of Ukraine.
In a sign of increasing concern over its financial health, the credit rating agency lowered Ineos's debt rating in September. Ratcliffe has also been required to invest significant funds into his off-road vehicle venture and the turnaround of 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 return for “voluntary agreements to curb consumption and CO2 output.” Figures for these relief schemes for Ineos's sites in Grangemouth and Hull are reported as ranges rather than precise figures.
An Ineos representative stated the aid did not constitute “special treatment” for the company, but was “granted based on 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 more critical comments. In these, the billionaire strongly criticised government policy, specifically carbon taxes levied on industrial users.
“The solution is not decarbonisation by deindustrialisation,” he stated. “Without a strong manufacturing base, the economy will continue to decline. Soaring power prices and burdensome carbon levies are driving industry out of the UK at an alarming rate.”
In further comments, Ratcliffe described carbon taxes as “an extremely foolish levy in the world,” contending they place UK plants at a competitive disadvantage against foreign rivals. Currently, most chemicals and plastics are excluded from the UK's initial carbon import tax.
Investment and Environmental Pledges
The Ineos representative further stated: “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 safeguard skilled jobs. The UK chemicals sector has had a brutal year, yet society depends on this industry every day. If we don't produce these critical products in the UK, they are brought in from overseas, often from more polluting operations abroad.”
A senior Ineos executive, head of sustainability for the company's Olefins & Polymers division, said the new funding would be used to improve energy efficiency, reduce carbon emissions, and boost plant performance.
He explained the site, which uses an processing unit running on North Sea gas and imported 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 in the past obtained significant tax breaks from the EU, valued at hundreds of millions of euros—interestingly while Ratcliffe was a prominent backer of the campaign for the UK to exit the European Union.
