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Before the recent £50m government bailout for its Scottish plant, industrial firms under the ownership of billionaire Sir Jim Ratcliffe had already been granted up to £70m in British government support during the previous four-year period.

Recent Disclosures and Bailout Package

According to official data published recently, state aid to the Ineos group in the last year alone was between £16m and £38m. Since August 2022, the conglomerate has received between £28m and £70m.

The government stepped in this week to provide Ineos with £50m to support its Grangemouth operations, concerned that without it the UK would lose its sole facility producing 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 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 area and a political problem for the government.

The billionaire, with an estimated net worth of $14.5bn, reportedly requested government assistance in October. This appeal coincides with the wide-ranging Ineos group, controlled by the 73-year-old, has faced considerable economic strain, partly due to sharply increased energy costs following Russia's full-scale invasion of Ukraine.

Reflecting growing unease over its ability to manage debt, the credit rating agency lowered Ineos's debt rating in September. Ratcliffe has also been required to invest substantial resources into his off-road vehicle venture and the turnaround of Manchester United, in which he holds a minority stake.

Form of Support and Company Statements

Most the previous state aid came in the form of tax relief in return for “commitments to reduce energy use and CO2 output.” The value of these relief schemes for Ineos's plants in Grangemouth and Hull were given as estimates rather than precise figures.

An Ineos spokesperson said the aid did not constitute “favourable terms” 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 strongly criticised government policy, including carbon taxes levied on industrial users.

“The answer is NOT decarbonisation by deindustrialisation,” Ratcliffe wrote. “Lacking a robust manufacturing base, the economy will falter. High energy costs and burdensome carbon levies are pushing industry out of the UK at an alarming rate.”

In further comments, Ratcliffe labelled carbon taxes as “the most idiotic tax in the world,” contending they place UK plants at a competitive disadvantage against international competitors. It is noted that most chemicals and plastics are excluded from the UK's initial carbon import tax.

Future Environmental Pledges

The Ineos representative further stated: “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 protect skilled jobs. The UK chemicals sector has had a brutal year, yet everyone relies on this industry every day. Should we fail to manufacture 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, said the Grangemouth money would be used to enhance energy efficiency, cut carbon emissions, and boost plant performance.

He explained the site, which uses an ethylene cracker utilising North Sea gas and imported liquefied petroleum gas, had been under “intense strain” from rocketing energy costs and the UK's carbon taxes.

Records show that Ineos has previously received significant tax breaks from the EU, worth hundreds of millions of euros—notably while Ratcliffe was a prominent backer of the campaign for the UK to exit the European Union.