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Prior to this week's £50m state rescue package for its Scottish plant, industrial firms controlled by billionaire Sir Jim Ratcliffe were already awarded as much as £70m in UK state aid over the past four years.

Recent Revelations and Bailout Package

Based on government disclosures published this week, state aid to Ratcliffe's chemical empire in the most recent year ranged from £16m and £38m. From August 2022 onwards, the company has obtained between £28m and £70m.

The government stepped in on Tuesday to provide 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 pledged to invest £30m of its private capital.

Plant Closure and Wider Challenges

This support arrives after Ineos closed the neighbouring oil refinery in September 2024, costing 400 jobs—a move described as a significant setback to the area and a challenge 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, under the control of the 73-year-old, has faced significant financial pressure, partly due to sharply increased energy costs in the wake of Russia's full-scale invasion of Ukraine.

Reflecting increasing concern over its ability to manage debt, the credit rating agency lowered Ineos's credit rating in September. Ratcliffe has also been required to invest significant funds into his off-road vehicle venture and efforts to revitalise Manchester United, in which he holds a minority stake.

Form of Support and Official Responses

Most the earlier government support was delivered in the form of tax breaks in return for “voluntary agreements to curb consumption and carbon dioxide emissions.” Figures for these tax breaks for Ineos's sites in Grangemouth and Hull were given as estimates rather than exact amounts.

An Ineos spokesperson said the aid did not represent “favourable terms” for the company, but was “granted based on strict criteria, and available to any UK business that qualifies.”

While Ratcliffe publicly welcomed the £50m support in an announcement, Ineos separately issued more critical comments. In these, the billionaire launched a broadside against government policy, specifically carbon taxes levied on industrial users.

“The solution is not decarbonisation by deindustrialisation,” he stated. “Lacking a robust manufacturing base, the economy will continue to decline. Soaring power prices and burdensome carbon levies are driving industry out of the UK at an unsustainable pace.”

In further comments, Ratcliffe described carbon taxes as “an extremely foolish levy in the world,” contending they put UK plants at a competitive disadvantage against foreign rivals. It is noted that most chemicals and plastics are not covered from the UK's initial carbon import tax.

Investment and Environmental Pledges

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 society depends on this industry every day. Should we fail to manufacture these essential materials 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 Grangemouth money would be used to improve energy efficiency, cut carbon emissions, and upgrade plant performance.

He noted the site, which uses an ethylene cracker running on North Sea gas and US-sourced liquefied petroleum gas, had been under “extreme pressure” 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, 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.