Industrial Firms Controlled by Billionaire Sir Jim Ratcliffe Received Up to £70m in UK Government Support Over the Past Four Years
Before this week's £50m state rescue package for its Grangemouth facility, chemical companies controlled by tycoon Jim Ratcliffe were already awarded up to £70m in British government support during the previous four-year period.
Recent Disclosures and Financial Support
According to government disclosures published this week, state aid to Ratcliffe's chemical empire in the last year alone ranged from £16m and £38m. From August 2022 onwards, the conglomerate has received a total of £28m and £70m.
Authorities intervened on Tuesday to provide Ineos with £50m to support its Scottish ethylene plant, fearing that otherwise the UK would cease to have its last remaining facility manufacturing ethylene—a vital feedstock for plastics. Officials additionally supported a £75m loan guarantee, while Ineos committed to invest £30m of its private capital.
Plant Closure and Broader Context
This support arrives following Ineos closed the adjacent oil refinery in late 2024, costing 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 asked for government assistance in October. This appeal coincides with the wide-ranging Ineos group, controlled by 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, the credit rating agency downgraded 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.
Nature of Aid and Company Statements
The majority of the earlier government support was delivered in the form of tax breaks in return for “voluntary agreements to curb consumption and CO2 output.” Figures for these tax breaks for Ineos's plants in Grangemouth and Hull were given as estimates rather than exact amounts.
An Ineos spokesperson stated 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 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 levied on industrial users.
“The answer is NOT decarbonisation by deindustrialisation,” Ratcliffe wrote. “Without a strong manufacturing base, the economy will falter. Soaring power prices and burdensome carbon levies are pushing industry out of the UK at an unsustainable pace.”
Speaking elsewhere, 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 excluded from the UK's initial carbon border adjustment mechanism.
Future 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 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. Should we fail to manufacture these critical products in the UK, they are imported instead, often from more polluting operations abroad.”
Colin Pritchard, head of sustainability for the company's Olefins & Polymers division, indicated the new funding would be used to improve energy efficiency, cut carbon emissions, and upgrade overall performance.
He explained the site, which uses an processing unit running on North Sea gas and US-sourced liquefied petroleum gas, had been under “intense strain” from rocketing energy costs and the UK's carbon taxes.
It has also been reported that Ineos has in the past obtained substantial tax breaks from the EU, worth hundreds of millions of euros—interestingly while Ratcliffe was a prominent backer of the campaign for the UK to leave the EU.
