Industrial Companies Owned by Tycoon Jim Ratcliffe Obtained As Much As £70m in UK Government Support In the Past Four Years
Before the recent £50m state rescue package for its Scottish plant, chemical companies controlled by billionaire Sir Jim Ratcliffe had already been granted up to £70m in British government support during the previous four-year period.
Recent Disclosures and Financial Support
According to government disclosures released this week, public funding to Ratcliffe's chemical empire in the last year alone ranged from £16m and £38m. Since August 2022, the company has received a total of £28m and £70m.
Authorities intervened this week to grant Ineos with £50m to support its Scottish ethylene plant, fearing that without it the UK would cease to have its sole facility manufacturing ethylene—a vital raw material for plastics. Officials additionally supported a £75m loan guarantee, while Ineos pledged to invest £30m of its private capital.
Plant Closure and Broader Context
This intervention comes after Ineos shut down the adjacent oil refinery in late 2024, resulting in the loss of 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, reportedly requested government help in October. The request coincides with the wide-ranging Ineos group, under the control of the 73-year-old, has faced considerable economic strain, partly 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, Fitch Ratings downgraded Ineos's credit rating in September. Ratcliffe has also had to commit significant funds into his off-road vehicle venture and efforts to revitalise the football club, in which he holds a partial ownership.
Form of Support and Company Statements
Most the previous state aid was delivered in the form of tax relief in return for “voluntary agreements to reduce energy use and carbon dioxide emissions.” Figures for these tax breaks for Ineos's plants in Grangemouth and Hull were given as estimates rather than precise figures.
An Ineos spokesperson said the aid did not represent “special treatment” 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, including carbon taxes paid by industrial users.
“The answer is NOT decarbonisation by deindustrialisation,” Ratcliffe wrote. “Without a strong manufacturing base, the economy will continue to decline. High energy costs and punitive carbon charges are pushing industry out of the UK at an unsustainable pace.”
In further comments, Ratcliffe labelled carbon taxes as “an extremely foolish levy in the world,” contending they put UK plants at a competitive disadvantage against foreign rivals. Currently, most chemicals and plastics are excluded from the UK's initial carbon import tax.
Investment and Sustainability Claims
The Ineos spokesperson added: “Ineos has invested over £400m at Grangemouth in the last five years to keep it as one of the most productive 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 critical products in the UK, they are brought in from overseas, often from more polluting operations abroad.”
A senior Ineos executive, head of sustainability for the company's chemicals unit, indicated the new funding would be used to improve energy efficiency, reduce carbon emissions, and upgrade overall 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 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.
