Industrial Companies Controlled by Billionaire Jim Ratcliffe Received Up to £70m in UK State Aid Over the Past Four Years
Prior to this week's £50m state rescue package for its Scottish plant, industrial firms controlled by billionaire Sir Jim Ratcliffe were already awarded as much as £70m in UK state aid over the past four years.
Latest Disclosures and Financial Support
According to official data released this week, state aid to Ratcliffe's chemical empire in the most recent year ranged from £16m and £38m. Since August 2022, the conglomerate has received a total of £28m and £70m.
Authorities intervened on Tuesday to provide Ineos with £50m to support its Grangemouth operations, 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 committed to invest £30m of its private capital.
Plant Closure and Broader Context
This intervention comes after Ineos closed the adjacent oil refinery in late 2024, resulting in the loss of 400 jobs—a move described as a significant setback to the area and a political problem 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 significant financial pressure, in part due to sharply increased energy costs following Russia's 2022 invasion of Ukraine.
In a sign of growing unease over its financial health, the credit rating agency 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 partial ownership.
Form of Support and Company Statements
Most the previous state aid was delivered in the form of tax relief in return for “commitments to curb consumption and carbon dioxide emissions.” The value of these tax breaks for Ineos's plants in Grangemouth and Hull are reported as ranges rather than precise figures.
An Ineos spokesperson said the aid did not constitute “favourable terms” for the company, but was “awarded against strict criteria, and available to any UK business that meets the requirements.”
While Ratcliffe publicly welcomed the £50m support in an announcement, Ineos also released more critical comments. In these, the industrialist launched a broadside against government policy, specifically carbon taxes levied on industrial users.
“The solution is not decarbonisation by deindustrialisation,” Ratcliffe wrote. “Lacking a robust manufacturing base, the economy will continue to decline. High energy costs 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,” contending they put UK plants at a competitive disadvantage against foreign rivals. It is noted that most chemicals and plastics are excluded from the UK's planned carbon border adjustment mechanism.
Investment and Sustainability Claims
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 productive chemical plants in Europe and to safeguard skilled jobs. British industry has had a brutal year, yet everyone relies on this industry every day. If we don't produce these essential materials in the UK, they are brought in from overseas, often from higher-carbon production abroad.”
A senior Ineos executive, head of sustainability for the company's chemicals unit, said the new funding would be used to improve energy efficiency, reduce carbon emissions, and boost overall performance.
He noted the site, which uses an processing unit running on North Sea gas and US-sourced liquefied petroleum gas, had been under “intense strain” from surging 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—notably while Ratcliffe was a leading supporter of the campaign for the UK to exit the European Union.
