Industrial Firms Owned 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 government bailout for its Grangemouth facility, chemical companies controlled by billionaire Jim Ratcliffe had already been granted up to £70m in British government support during the previous four-year period.
Recent Revelations and Financial Support
Based on official data released recently, public funding to Ratcliffe's chemical empire in the most recent year ranged from £16m and £38m. Since August 2022, the conglomerate has obtained a total of £28m and £70m.
The government stepped in on Tuesday to grant Ineos with £50m to prop up its Grangemouth operations, concerned that without it the UK would lose its sole facility producing ethylene—a critical raw material for plastics. Officials additionally supported a £75m credit guarantee, while Ineos pledged to invest £30m of its own funds.
Plant Closure and Broader Context
This support comes after Ineos shut down the neighbouring oil refinery in late 2024, costing 400 jobs—a move described as a significant setback to the local community and a challenge for the government.
The billionaire, with an estimated net worth of $14.5bn, reportedly asked for government assistance in October. The request comes at a time when the wide-ranging Ineos group, controlled by the 73-year-old, has faced significant financial pressure, in part due to sharply increased energy costs in the wake of Russia's 2022 invasion of Ukraine.
Reflecting growing unease over its financial health, the credit rating agency downgraded Ineos's credit rating in September. Ratcliffe has also been required to invest substantial resources into his off-road vehicle venture and the turnaround of Manchester United, 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 curb consumption and carbon dioxide emissions.” The value of these relief schemes for Ineos's plants in Grangemouth and Hull were given as estimates rather than exact amounts.
An Ineos representative stated the aid did not represent “favourable terms” for the company, but was “granted based on strict criteria, and available to any UK business that meets the requirements.”
While Ratcliffe thanked the government for the £50m support in an official statement, Ineos separately issued sharper remarks. In these, the billionaire strongly criticised government policy, including carbon taxes paid by industrial users.
“The answer 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 unsustainable pace.”
In further comments, Ratcliffe labelled carbon taxes as “an extremely foolish levy in the world,” contending they place UK plants at a disadvantage against international competitors. Currently, most chemicals and plastics are not covered from the UK's initial carbon import tax.
Investment and 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 productive chemical plants in Europe and to safeguard skilled jobs. The UK chemicals sector has had a very difficult 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 Olefins & Polymers division, indicated the new funding would be used to improve energy efficiency, cut carbon emissions, and upgrade overall performance.
He noted the site, which uses an ethylene cracker running on North Sea gas and US-sourced 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 in the past obtained significant tax breaks from the EU, worth hundreds of millions of euros—interestingly while Ratcliffe was a prominent backer of the campaign for the UK to leave the EU.