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Prior to the recent £50m state rescue package for its Grangemouth facility, industrial firms controlled by billionaire Jim Ratcliffe had already been granted as much as £70m in British government support over the past four years.

Recent Revelations and Bailout Package

Based on government disclosures released this week, state aid to the Ineos group in the last year alone was between £16m and £38m. Since August 2022, the company has obtained a total of £28m and £70m.

The government stepped in on Tuesday to grant Ineos with £50m to support its Grangemouth operations, concerned that without it the UK would lose its sole facility manufacturing ethylene—a critical raw material for plastics. The government also backed a £75m credit guarantee, while Ineos committed to invest £30m of its private capital.

Plant Closure and Wider Challenges

This support arrives following Ineos closed the adjacent oil refinery in September 2024, resulting in the loss of 400 jobs—a move described as a huge blow to the local community and a political problem for the government.

Ratcliffe, who is worth $14.5bn, reportedly asked for government assistance in October. This appeal coincides with the wide-ranging Ineos group, controlled by the 73-year-old, has faced significant financial pressure, partly due to soaring energy costs following Russia's 2022 invasion of Ukraine.

In a sign of increasing concern over its financial health, Fitch Ratings lowered Ineos's debt rating in September. Ratcliffe has also had to commit significant funds into his Ineos Grenadier automotive project and efforts to revitalise Manchester United, in which he holds a partial ownership.

Form of Support and Company Statements

The majority of the previous state aid 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 plants in Grangemouth and Hull were given as estimates 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 open to any UK business that meets the requirements.”

Although Ratcliffe thanked the government for the £50m support in an official statement, Ineos also released sharper remarks. In these, the billionaire strongly criticised government policy, specifically 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 punitive carbon charges 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. Currently, most chemicals and plastics are excluded from the UK's initial carbon import tax.

Future Environmental Pledges

The Ineos spokesperson 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 protect skilled jobs. British industry has had a brutal year, yet everyone relies on this industry every day. If we don't produce these essential materials in the UK, they are imported instead, often from more polluting operations abroad.”

A senior Ineos executive, head of sustainability for the company's chemicals unit, indicated the new funding would be used to enhance energy efficiency, reduce carbon emissions, and upgrade plant performance.

He explained the site, which uses an processing unit utilising 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, valued at hundreds of millions of euros—notably while Ratcliffe was a prominent backer of the campaign for the UK to exit the European Union.