Industrial Companies Controlled by Billionaire Sir Jim Ratcliffe Obtained Up to £70m in UK Government Support In the Last Four-Year Period

Prior to this week's £50m government bailout for its Scottish plant, industrial firms under the ownership of tycoon Jim Ratcliffe had already been granted up to £70m in British government support over the past four years.

Latest Disclosures and Financial Support

Based on government disclosures published this week, public funding to Ratcliffe's chemical empire in the most recent year ranged from £16m and £38m. From August 2022 onwards, the company has obtained between £28m and £70m.

Authorities intervened on Tuesday to provide Ineos with £50m to support its Grangemouth operations, concerned that otherwise the UK would lose its last remaining facility manufacturing ethylene—a vital feedstock for plastics. The government also backed a £75m loan guarantee, while Ineos committed to invest £30m of its private capital.

Refinery Shutdown and Broader Context

This support arrives following Ineos shut down the neighbouring oil refinery in September 2024, resulting in the loss of 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, is understood to have requested government help in October. The request comes at a time when the wide-ranging Ineos group, controlled by the 73-year-old, has faced considerable economic strain, partly due to sharply increased energy costs in the wake of Russia's 2022 invasion of Ukraine.

In a sign of growing unease over its ability to manage debt, Fitch Ratings downgraded Ineos's debt rating in September. Ratcliffe has also had to commit significant funds into his off-road vehicle venture and efforts to revitalise Manchester United, in which he holds a minority stake.

Nature of Aid and Company Statements

Most the previous state aid came in the form of tax breaks in exchange for “commitments to curb consumption and carbon dioxide emissions.” The value of these tax breaks 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 “favourable terms” for the company, but was “granted based on strict criteria, and available to any UK business that qualifies.”

Although Ratcliffe publicly welcomed the £50m support in an announcement, Ineos also released sharper remarks. In these, the industrialist strongly criticised government policy, specifically carbon taxes paid by industrial users.

“The solution is not decarbonisation by deindustrialisation,” he stated. “Without a strong manufacturing base, the economy will continue to decline. Soaring power prices and punitive carbon charges are pushing industry out of the UK at an alarming rate.”

In further comments, Ratcliffe described carbon taxes as “an extremely foolish levy in the world,” arguing they put 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 import tax.

Investment and Sustainability Claims

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. The UK chemicals sector has had a brutal year, yet society depends on this industry every day. If we don't produce these critical products in the UK, they are brought in from overseas, often from higher-carbon production abroad.”

Colin Pritchard, head of sustainability for the company's Olefins & Polymers division, said the new funding would be used to enhance energy efficiency, cut carbon emissions, and boost overall performance.

He explained 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 in the past obtained 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.