Industrial Companies Controlled by Tycoon Sir Jim Ratcliffe Received As Much As £70m in UK Government Support In the Past Four Years

Before the recent £50m government bailout for its Grangemouth facility, industrial firms controlled by tycoon Jim Ratcliffe had already been granted as much as £70m in British government support over the past four years.

Recent Revelations and Financial Support

According to official data published recently, public funding to Ratcliffe's chemical empire in the most recent year was between £16m and £38m. From August 2022 onwards, the company has received between £28m and £70m.

The government stepped in on Tuesday to grant Ineos with £50m to prop up its Grangemouth operations, concerned that otherwise the UK would cease to have its sole facility producing ethylene—a vital raw material for plastics. The government also backed a £75m loan guarantee, while Ineos pledged to invest £30m of its own funds.

Refinery Shutdown and Broader Context

This support comes after Ineos shut down the neighbouring oil refinery in late 2024, costing 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, is understood to have requested government assistance 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, in part due to sharply increased energy costs following Russia's 2022 invasion of Ukraine.

Reflecting growing unease over its ability to manage debt, the credit rating agency downgraded Ineos's credit rating in September. Ratcliffe has also been required to invest significant funds into his Ineos Grenadier automotive project and efforts to revitalise Manchester United, in which he holds a minority stake.

Form of Support and Company Statements

The majority of the previous state aid came in the form of tax relief in return for “commitments to reduce energy use and carbon dioxide emissions.” The value of these tax breaks for Ineos's sites in Grangemouth and Hull are reported as ranges rather than exact amounts.

An Ineos representative said the aid did not represent “special treatment” for the company, but was “granted based on strict criteria, and available to any UK business that meets the requirements.”

While Ratcliffe thanked the government for the £50m support in an announcement, Ineos also released sharper remarks. In these, the industrialist launched a broadside against 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 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,” arguing they place UK plants at a disadvantage against foreign rivals. It is noted that most chemicals and plastics are excluded from the UK's initial carbon import tax.

Future Sustainability Claims

The Ineos spokesperson 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. British industry has had a very difficult year, yet everyone relies 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, indicated the Grangemouth money would be used to improve energy efficiency, reduce carbon emissions, and boost overall performance.

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

Records show that Ineos has previously received substantial 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 leave the EU.