Industrial Companies Owned by Billionaire Jim Ratcliffe Obtained As Much As £70m in British Government Support Over the Past Four Years
Before this week's £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 during the previous four-year period.
Recent Disclosures and Bailout Package
According to official data published this week, state aid to Ratcliffe's chemical empire in the last year alone ranged from £16m and £38m. From August 2022 onwards, the company has received between £28m and £70m.
The government stepped in this week to grant Ineos with £50m to support its Scottish ethylene plant, concerned 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 credit guarantee, while Ineos pledged to invest £30m of its own funds.
Plant Closure and Broader Context
This intervention comes after Ineos shut down the neighbouring oil refinery in September 2024, costing 400 jobs—a move described as a significant setback to the local community and a challenge for the government.
Ratcliffe, who is worth $14.5bn, is understood to have asked for government assistance 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, partly due to soaring energy costs following Russia's 2022 invasion of Ukraine.
In a sign of increasing concern over its ability to manage debt, Fitch Ratings downgraded Ineos's debt rating in September. Ratcliffe has also had to commit significant funds into his off-road vehicle venture and efforts to revitalise the football club, in which he holds a partial ownership.
Form of Support and Company Statements
The majority of the previous state aid was delivered in the form of tax breaks in return for “voluntary agreements to reduce energy use and CO2 output.” Figures for these relief schemes for Ineos's plants in Grangemouth and Hull were given as estimates rather than precise figures.
An Ineos representative said the aid did not represent “favourable terms” 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 official statement, Ineos also released more critical comments. In these, the billionaire strongly criticised 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 described carbon taxes as “an extremely foolish levy in the world,” contending they place UK plants at a competitive disadvantage against foreign rivals. It is noted that most chemicals and plastics are excluded from the UK's planned carbon border adjustment mechanism.
Future Sustainability Claims
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 brought in from overseas, 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 boost plant performance.
He noted the site, which uses an processing unit utilising North Sea gas and US-sourced liquefied petroleum gas, had been under “intense strain” from rocketing energy costs and the UK's carbon taxes.
Records show that Ineos has previously received significant tax breaks from the EU, worth hundreds of millions of euros—notably while Ratcliffe was a leading supporter of the campaign for the UK to leave the EU.
