Chemical Firms Owned by Billionaire Jim Ratcliffe Received As Much As £70m in UK State Aid In the Past Four Years

Before this week's £50m state rescue package for its Scottish plant, chemical companies controlled by tycoon Jim Ratcliffe had already been granted as much as £70m in UK state aid during the previous four-year period.

Recent Disclosures and Financial Support

According to official data released this week, public funding to Ratcliffe's chemical empire in the most recent year ranged from £16m and £38m. Since August 2022, the company has obtained between £28m and £70m.

The government stepped in on Tuesday to provide Ineos with £50m to support its Grangemouth operations, fearing that otherwise the UK would cease to have its last remaining facility producing ethylene—a critical feedstock for plastics. The government also backed a £75m loan guarantee, while Ineos pledged to invest £30m of its own funds.

Refinery Shutdown and Wider Challenges

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

The billionaire, with an estimated net worth of $14.5bn, reportedly asked for government assistance in October. This appeal comes at a time when the expansive Ineos group, under the control of the 73-year-old, has faced considerable economic strain, in part due to soaring energy costs in the wake of Russia's full-scale invasion of Ukraine.

In a sign of increasing concern over its financial health, the credit rating agency downgraded Ineos's credit 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 partial ownership.

Form of Support and Company Statements

Most the previous state aid was delivered in the form of tax relief in exchange for “commitments to reduce energy use and carbon dioxide emissions.” The value of these tax breaks for Ineos's plants in Grangemouth and Hull were given as estimates rather than exact amounts.

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

Although Ratcliffe thanked the government for the £50m support in an announcement, Ineos also released more critical comments. In these, the industrialist launched a broadside against government policy, including carbon taxes paid by industrial users.

“The solution is not decarbonisation by deindustrialisation,” he stated. “Lacking a robust 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 labelled 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 not covered from the UK's initial carbon border adjustment mechanism.

Future Sustainability Claims

The Ineos spokesperson 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 safeguard skilled jobs. The UK chemicals sector has had a brutal 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 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 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.

It has also been reported that Ineos has previously received significant tax breaks from the EU, valued at hundreds of millions of euros—interestingly while Ratcliffe was a leading supporter of the campaign for the UK to exit the European Union.