Industrial Firms Controlled by Billionaire Sir Jim Ratcliffe Received As Much As £70m in UK Government Support In the Past Four Years

Prior to this week's £50m state rescue package for its Grangemouth facility, industrial firms controlled by billionaire Jim Ratcliffe had already been granted up to £70m in British government support over the past four years.

Recent Disclosures and Financial Support

According to government disclosures released this week, public funding to the Ineos group in the most recent year was between £16m and £38m. Since August 2022, the company has received a total of £28m and £70m.

Authorities intervened on Tuesday to provide Ineos with £50m to prop up its Scottish ethylene plant, fearing that without it the UK would cease to have its last remaining facility manufacturing ethylene—a critical feedstock for plastics. The government also backed a £75m credit guarantee, while Ineos committed to invest £30m of its own funds.

Plant Closure and Wider Challenges

This support comes following Ineos closed the adjacent oil refinery in September 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.

The billionaire, with an estimated net worth of $14.5bn, is understood to have asked for government assistance in October. This appeal coincides with the expansive Ineos group, controlled by the 73-year-old, has been under significant financial pressure, partly due to soaring energy costs in the wake of Russia's full-scale invasion of Ukraine.

In a sign of growing unease over its financial health, Fitch Ratings downgraded Ineos's credit rating in September. Ratcliffe has also been required to invest significant funds into his Ineos Grenadier automotive project and the turnaround of Manchester United, in which he holds a partial ownership.

Nature of Aid and Official Responses

The majority of the previous state aid came in the form of tax relief in return for “voluntary agreements to reduce energy use and carbon dioxide emissions.” The value of these tax breaks for Ineos's plants in Grangemouth and Hull are reported as ranges rather than exact amounts.

An Ineos representative stated the aid did not constitute “favourable terms” for the company, but was “granted based on strict criteria, and open to any UK business that meets the requirements.”

Although Ratcliffe publicly welcomed the £50m support in an official statement, Ineos also released sharper remarks. In these, the billionaire strongly criticised government policy, specifically carbon taxes levied on industrial users.

“The answer is NOT decarbonisation by deindustrialisation,” he stated. “Without a strong manufacturing base, the economy will falter. High energy costs and burdensome carbon levies are pushing industry out of the UK at an unsustainable pace.”

In further comments, Ratcliffe described carbon taxes as “an extremely foolish levy in the world,” arguing they put UK plants at a competitive disadvantage against international competitors. Currently, most chemicals and plastics are not covered from the UK's initial 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. British industry has had a very difficult year, yet society depends on this industry every day. Should we fail to manufacture 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 new funding would be used to enhance energy efficiency, reduce carbon emissions, and upgrade 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 rocketing energy costs and the UK's carbon taxes.

Records show that Ineos has in the past obtained significant tax breaks from the EU, valued at hundreds of millions of euros—interestingly while Ratcliffe was a prominent backer of the campaign for the UK to exit the European Union.