Chemical Companies Owned by Billionaire Jim Ratcliffe Received As Much As £70m in British State Aid Over the Past Four Years
Prior to the recent £50m government bailout for its Grangemouth facility, chemical companies under the ownership of tycoon Sir Jim Ratcliffe were already awarded up to £70m in British government support over the past four years.
Recent Revelations and Bailout Package
According to official data released this week, state aid to Ratcliffe's chemical empire in the most recent year was between £16m and £38m. From August 2022 onwards, the company has obtained between £28m and £70m.
Authorities intervened this week to grant Ineos with £50m to support its Grangemouth operations, fearing that otherwise the UK would cease to have its last remaining facility producing ethylene—a critical feedstock 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 support 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 local community and a political problem for the government.
The billionaire, with an estimated net worth of $14.5bn, is understood to have requested government assistance in October. The request comes at a time when 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 ability to manage debt, the credit rating agency lowered Ineos's debt rating in September. Ratcliffe has also had to commit substantial resources into his off-road vehicle venture and the turnaround of the football club, in which he holds a minority stake.
Form of Support and Official Responses
The majority of the previous state aid was delivered in the form of tax breaks in exchange for “voluntary agreements 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 exact amounts.
An Ineos spokesperson stated the aid did not constitute “special treatment” for the company, but was “awarded against strict criteria, and available to any UK business that qualifies.”
Although Ratcliffe publicly welcomed the £50m support in an announcement, Ineos separately issued sharper remarks. In these, the industrialist launched a broadside against government policy, including carbon taxes levied on industrial users.
“The answer is NOT decarbonisation by deindustrialisation,” he stated. “Without a strong manufacturing base, the economy will continue to decline. High energy costs and burdensome carbon levies are driving industry out of the UK at an alarming rate.”
In further comments, Ratcliffe labelled carbon taxes as “the most idiotic tax in the world,” arguing they place UK plants at a competitive disadvantage against foreign rivals. Currently, most chemicals and plastics are not covered from the UK's initial carbon import tax.
Investment and Environmental Pledges
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 efficient chemical plants in Europe and to safeguard skilled jobs. The UK chemicals sector 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 more polluting operations abroad.”
Colin Pritchard, head of sustainability for the company's chemicals unit, indicated the Grangemouth money would be used to enhance energy efficiency, cut carbon emissions, and upgrade plant performance.
He explained 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.
It has also been reported that Ineos has in the past obtained substantial tax breaks from the EU, worth hundreds of millions of euros—interestingly while Ratcliffe was a leading supporter of the campaign for the UK to leave the EU.