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Prior to this week's £50m state rescue package 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 Revelations and Financial Support

According to government disclosures released recently, state aid to the Ineos group in the most recent year ranged from £16m and £38m. From August 2022 onwards, the company has received between £28m and £70m.

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

Plant Closure and Broader Context

This support comes following Ineos shut down the neighbouring oil refinery in September 2024, costing 400 jobs—a move described as a huge blow to the local community and a challenge for the government.

Ratcliffe, who is worth $14.5bn, reportedly requested government assistance in October. This appeal coincides with the expansive Ineos group, under the control of the 73-year-old, has been under significant financial pressure, in part due to soaring energy costs following 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 had to commit substantial resources into his Ineos Grenadier automotive project and efforts to revitalise Manchester United, in which he holds a partial ownership.

Form of Support and Company Statements

The majority of the earlier government support was delivered in the form of tax breaks in return for “commitments to curb consumption and CO2 output.” The value of these relief schemes for Ineos's plants in Grangemouth and Hull were given as estimates rather than exact amounts.

An Ineos spokesperson stated the aid did not represent “favourable terms” for the company, but was “awarded against strict criteria, and open to any UK business that qualifies.”

Although Ratcliffe publicly welcomed the £50m support in an announcement, Ineos separately issued more critical comments. In these, the billionaire strongly criticised government policy, including 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 punitive carbon charges are driving industry out of the UK at an alarming rate.”

In further comments, Ratcliffe labelled carbon taxes as “the most idiotic tax in the world,” contending they place UK plants at a competitive disadvantage against foreign rivals. Currently, most chemicals and plastics are excluded from the UK's initial carbon import tax.

Investment and Sustainability Claims

The Ineos representative added: “Ineos has invested over £400m at Grangemouth in the last five years to keep it as one of the most efficient 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 essential materials in the UK, they are imported instead, often from higher-carbon production abroad.”

Colin Pritchard, head of sustainability for the company's Olefins & Polymers division, indicated the new funding would be used to improve energy efficiency, reduce 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 “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—notably while Ratcliffe was a prominent backer of the campaign for the UK to exit the European Union.