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Prior to the recent £50m government bailout for its Scottish plant, chemical companies under the ownership of tycoon Jim Ratcliffe were already awarded as much as £70m in UK state aid over the past four years.

Latest Revelations and Bailout Package

Based on official data published recently, state aid to Ratcliffe's chemical empire in the most recent year ranged from £16m and £38m. From August 2022 onwards, the conglomerate has received a total of £28m and £70m.

The government stepped in this week to provide Ineos with £50m to prop up its Grangemouth operations, concerned that without it the UK would cease to have its last remaining facility manufacturing ethylene—a critical raw material for plastics. The government also backed a £75m loan guarantee, while Ineos pledged to invest £30m of its own funds.

Plant Closure and Broader Context

This support comes after Ineos closed the neighbouring oil refinery in late 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.

Ratcliffe, who is worth $14.5bn, reportedly requested government help in October. The request comes at a time when 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.

Reflecting growing unease over its financial health, Fitch Ratings lowered Ineos's debt rating in September. Ratcliffe has also had to commit significant funds into his Ineos Grenadier automotive project and the turnaround of Manchester United, in which he holds a minority stake.

Nature of Aid and Company Statements

Most the previous state aid came in the form of tax relief in exchange for “commitments to reduce energy use and CO2 output.” The value of these relief schemes for Ineos's plants in Grangemouth and Hull are reported as ranges rather than exact amounts.

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

Although Ratcliffe publicly welcomed the £50m support in an announcement, Ineos separately issued more critical comments. In these, the industrialist strongly criticised government policy, specifically carbon taxes paid by industrial users.

“The solution is not decarbonisation by deindustrialisation,” Ratcliffe wrote. “Without a strong manufacturing base, the economy will falter. High energy costs and burdensome carbon levies are driving industry out of the UK at an unsustainable pace.”

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

Investment and Sustainability Claims

The Ineos spokesperson 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 everyone relies on this industry every day. If we don't produce these essential materials in the UK, they are imported instead, often from higher-carbon production abroad.”

A senior Ineos executive, head of sustainability for the company's Olefins & Polymers division, said the new funding would be used to improve energy efficiency, cut carbon emissions, and boost overall performance.

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

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