Chemical Firms Owned by Tycoon Jim Ratcliffe Received As Much As £70m in UK Government Support Over the Last Four-Year Period
Prior to the recent £50m state rescue package for its Scottish plant, chemical companies under the ownership of tycoon Jim Ratcliffe were already awarded as much as £70m in British government support during the previous four-year period.
Recent Revelations and Bailout Package
Based on official data released recently, public funding to Ratcliffe's chemical empire in the last year alone ranged from £16m and £38m. Since August 2022, the conglomerate has received between £28m and £70m.
The government stepped in on Tuesday to grant Ineos with £50m to support its Grangemouth operations, fearing that without it the UK would lose its sole facility producing ethylene—a critical raw material for plastics. The government also backed a £75m loan guarantee, while Ineos committed to invest £30m of its own funds.
Refinery Shutdown and Broader Context
This intervention 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 area and a challenge for the government.
Ratcliffe, who is worth $14.5bn, is understood to have asked for government assistance in October. The request coincides with the expansive Ineos group, under the control of the 73-year-old, has been under considerable economic strain, in part due to sharply increased energy costs in the wake of Russia's full-scale invasion of Ukraine.
Reflecting increasing concern over its ability to manage debt, Fitch Ratings 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.
Form of Support and Official Responses
Most the earlier government support came in the form of tax relief in return for “commitments to curb consumption and CO2 output.” Figures for these tax breaks for Ineos's plants 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 open to any UK business that meets the requirements.”
While Ratcliffe thanked the government for the £50m support in an announcement, Ineos also released more critical comments. In these, the industrialist strongly criticised government policy, specifically carbon taxes paid by industrial users.
“The solution is not decarbonisation by deindustrialisation,” Ratcliffe wrote. “Without a strong manufacturing base, the economy will continue to decline. High energy costs and burdensome carbon levies are driving industry out of the UK at an alarming rate.”
Speaking elsewhere, Ratcliffe labelled carbon taxes as “an extremely foolish levy in the world,” contending they put UK plants at a disadvantage against foreign rivals. It is noted that most chemicals and plastics are not covered from the UK's planned carbon border adjustment mechanism.
Investment and Environmental Pledges
The Ineos representative added: “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 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 chemicals unit, indicated the new funding would be used to enhance energy efficiency, reduce carbon emissions, and boost plant performance.
He explained the site, which uses an ethylene cracker running on North Sea gas and imported liquefied petroleum gas, had been under “intense strain” from rocketing energy costs and the UK's carbon taxes.
Records show that Ineos has previously received 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.
