Chemical Companies Controlled by Tycoon Jim Ratcliffe Received Up to £70m in UK Government Support In the Past Four Years
Before this week's £50m state rescue package for its Grangemouth facility, chemical companies under the ownership of tycoon Jim Ratcliffe were already awarded as much as £70m in UK state aid during the previous four-year period.
Recent Revelations and Financial Support
Based on government disclosures released recently, public funding to Ratcliffe's chemical empire in the last year alone ranged from £16m and £38m. Since August 2022, the company has obtained between £28m and £70m.
Authorities intervened on Tuesday to provide Ineos with £50m to support its Grangemouth operations, fearing that without it the UK would cease to have its sole facility producing ethylene—a critical feedstock for plastics. The government also backed a £75m credit guarantee, while Ineos pledged to invest £30m of its private capital.
Refinery Shutdown and Wider Challenges
This support comes after Ineos shut down 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 challenge for the government.
The billionaire, with an estimated net worth of $14.5bn, is understood to have requested government help in October. The request comes at a time when the expansive Ineos group, controlled by 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 growing unease over its ability to manage debt, Fitch Ratings lowered Ineos's credit rating in September. Ratcliffe has also been required to invest significant funds into his off-road vehicle venture and efforts to revitalise Manchester United, in which he holds a minority stake.
Form of Support and Company Statements
The majority of the previous state aid came in the form of tax relief in return for “commitments to curb consumption and CO2 output.” The value of these relief schemes for Ineos's sites in Grangemouth and Hull are reported as ranges rather than exact amounts.
An Ineos spokesperson said the aid did not constitute “favourable terms” for the company, but was “granted based on strict criteria, and available to any UK business that meets the requirements.”
Although Ratcliffe publicly welcomed the £50m support in an official statement, Ineos separately issued 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,” Ratcliffe wrote. “Lacking a robust manufacturing base, the economy will continue to decline. Soaring power prices and punitive carbon charges are pushing industry out of the UK at an unsustainable pace.”
Speaking elsewhere, Ratcliffe labelled carbon taxes as “an extremely foolish levy in the world,” arguing they put UK plants at a disadvantage against foreign rivals. Currently, most chemicals and plastics are not covered from the UK's initial carbon import tax.
Investment and Sustainability Claims
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 protect skilled jobs. British industry has had a very difficult year, yet everyone relies on this industry every day. Should we fail to manufacture 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, indicated the new funding would be used to enhance energy efficiency, cut carbon emissions, and upgrade overall performance.
He explained the site, which uses an ethylene cracker utilising North Sea gas and imported liquefied petroleum gas, had been under “extreme pressure” from rocketing energy costs and the UK's carbon taxes.
Records show 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.