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Prior to the recent £50m government bailout for its Grangemouth facility, industrial firms controlled by billionaire Sir Jim Ratcliffe were already awarded up to £70m in British government support during the previous four-year period.

Latest Revelations and Bailout Package

Based on official data published this week, public funding to Ratcliffe's chemical empire in the last year alone ranged from £16m and £38m. From August 2022 onwards, the conglomerate has obtained a total of £28m and £70m.

The government stepped in on Tuesday to provide Ineos with £50m to support its Scottish ethylene plant, fearing that otherwise the UK would lose its sole facility manufacturing ethylene—a critical raw material for plastics. The government also backed a £75m loan guarantee, while Ineos pledged to invest £30m of its own funds.

Refinery Shutdown and Broader Context

This support arrives after Ineos closed the adjacent oil refinery in late 2024, resulting in the loss of 400 jobs—a move described as a significant setback to the area and a challenge for the government.

Ratcliffe, who is worth $14.5bn, reportedly requested government help in October. This appeal coincides with the expansive Ineos group, controlled by the 73-year-old, has faced considerable economic strain, in part due to sharply increased energy costs following Russia's full-scale invasion of Ukraine.

In a sign of growing unease over its financial health, the credit rating agency downgraded Ineos's debt rating in September. Ratcliffe has also been required to invest significant funds into his off-road vehicle venture and efforts to revitalise the football club, in which he holds a partial ownership.

Nature of Aid and Company Statements

The majority of the earlier government support was delivered in the form of tax relief in return for “voluntary agreements to curb consumption and carbon dioxide emissions.” The value of these relief schemes for Ineos's sites in Grangemouth and Hull are reported as ranges rather than precise figures.

An Ineos representative stated the aid did not represent “special treatment” for the company, but was “granted based on strict criteria, and open to any UK business that qualifies.”

Although Ratcliffe publicly welcomed the £50m support in an official statement, Ineos also released sharper remarks. In these, the billionaire launched a broadside against government policy, specifically 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. High energy costs and burdensome carbon levies are driving industry out of the UK at an unsustainable pace.”

In further comments, Ratcliffe described carbon taxes as “the most idiotic tax in the world,” arguing they put UK plants at a disadvantage against international competitors. It is noted that most chemicals and plastics are not covered from the UK's initial carbon border adjustment mechanism.

Investment and Environmental Pledges

The Ineos spokesperson further stated: “Ineos has invested over £400m at Grangemouth in the last five years to maintain its status as one of the most efficient chemical plants in Europe and to safeguard skilled jobs. British industry has had a brutal 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 chemicals unit, indicated the new funding would be used to enhance energy efficiency, reduce carbon emissions, and boost plant performance.

He noted the site, which uses an ethylene cracker utilising North Sea gas and US-sourced liquefied petroleum gas, had been under “extreme pressure” from rocketing energy costs and the UK's carbon taxes.

Records show that Ineos has previously received substantial 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.