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Before this week's £50m government bailout for its Grangemouth facility, industrial firms under the ownership of billionaire Sir Jim Ratcliffe had already been granted up to £70m in UK state aid over the past four years.

Recent Disclosures and Financial Support

Based on official data released recently, state aid to the Ineos group in the last year alone ranged from £16m and £38m. Since August 2022, the company has received between £28m and £70m.

The government stepped in this week to provide Ineos with £50m to support its Scottish ethylene plant, 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 credit guarantee, while Ineos pledged to invest £30m of its own funds.

Plant Closure and Wider Challenges

This intervention comes after Ineos closed the neighbouring oil refinery in late 2024, resulting in the loss of 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 help in October. This appeal coincides with the wide-ranging Ineos group, under the control of the 73-year-old, has faced significant financial pressure, in part due to soaring energy costs in the wake of Russia's 2022 invasion of Ukraine.

Reflecting increasing concern over its financial health, the credit rating agency downgraded Ineos's credit rating in September. Ratcliffe has also had to commit substantial resources into his off-road vehicle venture and the turnaround of Manchester United, in which he holds a partial ownership.

Nature of Aid and Company Statements

The majority of the previous state aid came in the form of tax breaks in exchange for “commitments to curb consumption and CO2 output.” The value of these relief schemes for Ineos's plants in Grangemouth and Hull are reported as ranges rather than precise figures.

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

Although Ratcliffe publicly welcomed the £50m support in an official statement, Ineos separately issued more critical comments. In these, the industrialist 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 labelled carbon taxes as “an extremely foolish levy 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 planned carbon import tax.

Future Environmental Pledges

The Ineos representative 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 very difficult 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.”

Colin Pritchard, head of sustainability for the company's Olefins & Polymers division, indicated the Grangemouth money would be used to improve energy efficiency, reduce carbon emissions, and upgrade overall performance.

He noted 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.

It has also been reported that Ineos has previously received 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 leave the EU.