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Prior to the recent £50m state rescue package for its Grangemouth facility, chemical companies controlled by billionaire Sir Jim Ratcliffe were already awarded as much as £70m in UK state aid over the past four years.

Recent Disclosures and Bailout Package

Based on official data published recently, public funding to the Ineos group in the last year alone ranged from £16m and £38m. From August 2022 onwards, the conglomerate has obtained between £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 lose its sole facility producing ethylene—a critical feedstock for plastics. The government also backed a £75m credit guarantee, while Ineos committed to invest £30m of its own funds.

Refinery Shutdown and Wider Challenges

This support comes following Ineos closed the neighbouring oil refinery in September 2024, costing 400 jobs—a move described as a significant setback to the area and a challenge for the government.

The billionaire, with an estimated net worth of $14.5bn, is understood to have requested government assistance in October. This appeal coincides with the expansive Ineos group, under the control of the 73-year-old, has faced considerable economic strain, in part due to sharply increased energy costs in the wake of Russia's 2022 invasion of Ukraine.

Reflecting growing unease over its ability to manage debt, the credit rating agency lowered 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 minority stake.

Nature of Aid and Company Statements

Most 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 precise figures.

An Ineos representative said the aid did not constitute “special treatment” for the company, but was “granted based on strict criteria, and open to any UK business that qualifies.”

Although Ratcliffe thanked the government for the £50m support in an announcement, Ineos also released more critical comments. In these, the industrialist strongly criticised government policy, including carbon taxes paid by industrial users.

“The solution is not decarbonisation by deindustrialisation,” Ratcliffe wrote. “Without a strong manufacturing base, the economy will continue to decline. Soaring power prices and punitive carbon charges are pushing industry out of the UK at an unsustainable pace.”

Speaking elsewhere, Ratcliffe described carbon taxes as “an extremely foolish levy in the world,” contending they place UK plants at a competitive disadvantage against foreign rivals. It is noted that most chemicals and plastics are not covered from the UK's planned carbon import tax.

Future Environmental Pledges

The Ineos spokesperson further stated: “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. The UK chemicals sector has had a very difficult year, yet everyone relies 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.”

Colin Pritchard, head of sustainability for the company's Olefins & Polymers division, said the new funding would be used to improve energy efficiency, reduce carbon emissions, and upgrade plant performance.

He explained the site, which uses an processing unit utilising North Sea gas and imported liquefied petroleum gas, had been under “extreme pressure” from surging energy costs and the UK's carbon taxes.

It has also been reported that Ineos has previously received significant 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.