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Prior to this week's £50m government bailout for its Grangemouth facility, chemical companies controlled by billionaire Sir Jim Ratcliffe had already been granted up to £70m in UK state aid over the past four years.

Recent Disclosures and Bailout Package

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

The government stepped in this week to grant Ineos with £50m to prop up its Scottish ethylene plant, fearing that otherwise the UK would lose its sole facility manufacturing ethylene—a vital feedstock for plastics. The government also backed a £75m loan guarantee, while Ineos committed to invest £30m of its own funds.

Plant Closure and Wider Challenges

This support arrives following Ineos closed the neighbouring oil refinery in late 2024, costing 400 jobs—a move described as a huge blow to the local community and a political problem for the government.

The billionaire, with an estimated net worth of $14.5bn, is understood to have asked for government help in October. The request coincides with the expansive Ineos group, controlled by the 73-year-old, has faced significant financial pressure, in part due to soaring energy costs following Russia's full-scale invasion of Ukraine.

Reflecting growing unease over its ability to manage debt, Fitch Ratings downgraded Ineos's debt rating in September. Ratcliffe has also been required to invest significant funds into his off-road vehicle venture and the turnaround of Manchester United, in which he holds a minority stake.

Form of Support and Company Statements

Most the previous state aid came in the form of tax relief in exchange for “commitments to reduce energy use and CO2 output.” Figures for these relief schemes for Ineos's sites in Grangemouth and Hull were given as estimates rather than precise figures.

An Ineos spokesperson stated the aid did not represent “favourable terms” for the company, but was “granted based on strict criteria, and open to any UK business that meets the requirements.”

While Ratcliffe publicly welcomed the £50m support in an official statement, Ineos separately issued 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 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 place UK plants at a competitive disadvantage against foreign rivals. Currently, most chemicals and plastics are not covered from the UK's initial carbon border adjustment mechanism.

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 productive chemical plants in Europe and to protect skilled jobs. British industry has had a brutal year, yet society depends on this industry every day. If we don't produce these essential materials 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 Grangemouth money would be used to enhance energy efficiency, reduce carbon emissions, and boost plant performance.

He noted the site, which uses an processing unit utilising 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 in the past obtained significant 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.