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Before the recent £50m government bailout for its Scottish plant, industrial firms under the ownership of billionaire Jim Ratcliffe were already awarded up to £70m in British government support over the past four years.

Latest Disclosures and Bailout Package

Based on government disclosures released recently, state aid to Ratcliffe's chemical empire in the most recent year was between £16m and £38m. Since August 2022, the company has obtained between £28m and £70m.

Authorities intervened on Tuesday to provide Ineos with £50m to support its Scottish ethylene plant, fearing that without it the UK would cease to have its sole facility manufacturing ethylene—a vital raw material for plastics. Officials additionally supported a £75m credit guarantee, while Ineos pledged to invest £30m of its private capital.

Plant Closure and Broader Context

This support arrives after Ineos closed the neighbouring oil refinery in September 2024, resulting in the loss of 400 jobs—a move described as a huge blow to the local community 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 wide-ranging Ineos group, under the control of the 73-year-old, has faced significant financial pressure, partly due to soaring energy costs in the wake of Russia's 2022 invasion of Ukraine.

In a sign of growing unease over its ability to manage debt, the credit rating agency lowered Ineos's debt rating in September. Ratcliffe has also had to commit substantial resources into his Ineos Grenadier automotive project and the turnaround of the football club, in which he holds a minority stake.

Nature of Aid and Company Statements

The majority of the previous state aid came in the form of tax breaks in exchange for “commitments to curb consumption and carbon dioxide emissions.” Figures for these tax breaks for Ineos's plants in Grangemouth and Hull are reported as ranges rather than precise figures.

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

Although Ratcliffe publicly welcomed the £50m support in an announcement, Ineos separately issued sharper remarks. In these, the industrialist strongly criticised government policy, specifically 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. Soaring power prices and burdensome carbon levies are driving industry out of the UK at an unsustainable pace.”

Speaking elsewhere, Ratcliffe labelled carbon taxes as “the most idiotic tax in the world,” arguing they put UK plants at a competitive disadvantage against international competitors. 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 maintain its status as one of the most efficient 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 essential materials in the UK, they are brought in from overseas, often from higher-carbon production abroad.”

Colin Pritchard, head of sustainability for the company's Olefins & Polymers division, 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 processing unit utilising North Sea gas and imported liquefied petroleum gas, had been under “intense strain” from surging energy costs and the UK's carbon taxes.

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