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Prior to the recent £50m state rescue package for its Scottish plant, chemical companies controlled by tycoon Sir Jim Ratcliffe had already been granted up to £70m in British government support over the past four years.

Latest Revelations and Bailout Package

Based on official data published recently, state aid to the Ineos group in the most recent year was between £16m and £38m. Since August 2022, the conglomerate has received a total of £28m and £70m.

The government stepped in on Tuesday to provide Ineos with £50m to support its Scottish ethylene plant, fearing that otherwise the UK would cease to have its last remaining facility manufacturing ethylene—a critical 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 support comes following 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.

Ratcliffe, who is worth $14.5bn, reportedly asked for government help in October. This appeal coincides with the wide-ranging Ineos group, controlled by the 73-year-old, has faced significant financial pressure, in part due to sharply increased energy costs following Russia's 2022 invasion of Ukraine.

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

Nature of Aid and Official Responses

The majority of the earlier government support was delivered in the form of tax breaks in exchange for “commitments to reduce energy use and carbon dioxide emissions.” Figures for these relief schemes for Ineos's sites in Grangemouth and Hull were given as estimates rather than precise figures.

An Ineos spokesperson stated the aid did not represent “favourable terms” 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 announcement, Ineos also released sharper remarks. In these, the billionaire launched a broadside against government policy, including carbon taxes paid by industrial users.

“The solution is not decarbonisation by deindustrialisation,” Ratcliffe wrote. “Lacking a robust 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. Currently, most chemicals and plastics are excluded from the UK's initial carbon import tax.

Future 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. British industry has had a very difficult year, yet society depends on this industry every day. Should we fail to manufacture these critical products in the UK, they are imported instead, often from higher-carbon production abroad.”

Colin Pritchard, head of sustainability for the company's Olefins & Polymers division, indicated the Grangemouth money would be used to enhance energy efficiency, cut carbon emissions, and upgrade 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 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.