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Before the recent £50m government bailout for its Scottish plant, chemical companies under the ownership of tycoon Sir Jim Ratcliffe were already awarded as much as £70m in British government support over the past four years.

Latest Revelations and Bailout Package

According to government disclosures published recently, public funding 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 grant Ineos with £50m to prop up its Scottish ethylene plant, concerned that without it the UK would cease to have its last remaining facility manufacturing ethylene—a critical raw material for plastics. Officials additionally supported a £75m credit guarantee, while Ineos committed to invest £30m of its own funds.

Refinery Shutdown and Broader Context

This support comes following Ineos shut down the neighbouring oil refinery in September 2024, resulting in the loss of 400 jobs—a move described as a huge blow to the area 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, controlled by the 73-year-old, has been under considerable economic strain, in part due to soaring energy costs in the wake of Russia's full-scale invasion of Ukraine.

Reflecting growing unease over its ability to manage debt, the credit rating agency lowered Ineos's debt rating in September. Ratcliffe has also been required to invest substantial resources into his off-road vehicle venture and efforts to revitalise Manchester United, in which he holds a minority stake.

Form of Support and Company Statements

The majority of the previous state aid was delivered in the form of tax relief in return for “voluntary agreements to curb consumption and CO2 output.” Figures for these tax breaks for Ineos's plants in Grangemouth and Hull are reported as ranges rather than precise figures.

An Ineos representative stated the aid did not constitute “special treatment” for the company, but was “awarded against strict criteria, and available to any UK business that meets the requirements.”

Although Ratcliffe publicly welcomed the £50m support in an official statement, Ineos separately issued sharper remarks. In these, the billionaire strongly criticised 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. Soaring power prices and punitive carbon charges are driving industry out of the UK at an alarming rate.”

In further comments, Ratcliffe described carbon taxes as “an extremely foolish levy 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 import tax.

Future 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 very difficult year, yet society depends on this industry every day. If we don't produce these critical products 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 Grangemouth money would be used to enhance energy efficiency, cut carbon emissions, and boost overall performance.

He noted the site, which uses an ethylene cracker running on North Sea gas and imported liquefied petroleum gas, had been under “extreme pressure” 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—notably while Ratcliffe was a prominent backer of the campaign for the UK to exit the European Union.