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Before the recent £50m state rescue package for its Scottish plant, industrial firms controlled by billionaire Sir Jim Ratcliffe had already been granted as much as £70m in UK state aid during the previous four-year period.

Recent Disclosures and Bailout Package

Based on official data released this week, state aid to Ratcliffe's chemical empire in the last year alone was between £16m and £38m. Since August 2022, the conglomerate has received between £28m and £70m.

Authorities intervened on Tuesday to provide Ineos with £50m to prop up its Scottish ethylene plant, concerned that without it the UK would lose its last remaining facility manufacturing ethylene—a vital feedstock for plastics. Officials additionally supported a £75m loan guarantee, while Ineos committed to invest £30m of its own funds.

Refinery Shutdown and Broader Context

This intervention 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 local community and a challenge for the government.

Ratcliffe, who is worth $14.5bn, reportedly asked for government help in October. The request coincides with the expansive Ineos group, controlled by the 73-year-old, has faced considerable economic strain, partly due to soaring energy costs in the wake of Russia's full-scale invasion of Ukraine.

Reflecting increasing concern over its financial health, Fitch Ratings lowered Ineos's credit rating in September. Ratcliffe has also been required to invest substantial resources into his off-road vehicle venture and efforts to revitalise the football club, in which he holds a minority stake.

Nature of Aid and Company Statements

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

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

While Ratcliffe publicly welcomed the £50m support in an announcement, Ineos separately issued sharper remarks. In these, the industrialist launched a broadside against government policy, specifically carbon taxes paid by industrial users.

“The answer is NOT decarbonisation by deindustrialisation,” Ratcliffe wrote. “Lacking a robust manufacturing base, the economy will falter. High energy costs and punitive carbon charges are driving industry out of the UK at an unsustainable pace.”

In further comments, Ratcliffe labelled carbon taxes as “an extremely foolish levy in the world,” arguing they put UK plants at a disadvantage against international competitors. It is noted that most chemicals and plastics are excluded from the UK's planned 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 productive chemical plants in Europe and to safeguard skilled jobs. British industry 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 more polluting operations abroad.”

Colin Pritchard, head of sustainability for the company's chemicals unit, said the Grangemouth money would be used to improve energy efficiency, reduce carbon emissions, and boost overall performance.

He noted 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, worth hundreds of millions of euros—interestingly while Ratcliffe was a leading supporter of the campaign for the UK to leave the EU.