Industrial Firms Owned by Tycoon Jim Ratcliffe Received Up to £70m in British Government Support In the Last Four-Year Period
Prior to the recent £50m state rescue package for its Grangemouth facility, chemical companies under the ownership of tycoon Jim Ratcliffe had already been granted up to £70m in UK state aid during the previous four-year period.
Recent Revelations and Financial Support
According to official data released recently, public funding to Ratcliffe's chemical empire in the last year alone was between £16m and £38m. Since August 2022, the conglomerate has received a total of £28m and £70m.
Authorities intervened this week to provide Ineos with £50m to prop up its Grangemouth operations, concerned that otherwise the UK would cease to have its last remaining facility manufacturing ethylene—a critical feedstock for plastics. The government also backed a £75m loan guarantee, while Ineos pledged to invest £30m of its own funds.
Refinery Shutdown and Wider Challenges
This support arrives following Ineos shut down the neighbouring oil refinery in late 2024, resulting in the loss of 400 jobs—a move described as a huge blow to the area and a political problem for the government.
The billionaire, with an estimated net worth of $14.5bn, reportedly requested government help in October. The request comes at a time when the expansive Ineos group, controlled by the 73-year-old, has faced considerable economic strain, in part due to soaring energy costs in the wake of Russia's full-scale invasion of Ukraine.
Reflecting increasing concern over its financial health, the credit rating agency lowered Ineos's credit rating in September. Ratcliffe has also been required to invest substantial resources into his Ineos Grenadier automotive project and the turnaround of Manchester United, in which he holds a partial ownership.
Nature of Aid and Company Statements
The majority of the earlier government support came in the form of tax relief in exchange for “commitments to reduce energy use and CO2 output.” The value of these tax breaks for Ineos's sites in Grangemouth and Hull are reported as ranges rather than precise figures.
An Ineos representative stated the aid did not constitute “special treatment” for the company, but was “awarded against strict criteria, and open to any UK business that qualifies.”
While Ratcliffe thanked the government for the £50m support in an official statement, Ineos also released sharper remarks. 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. “Without a strong manufacturing base, the economy will falter. Soaring power prices and punitive carbon charges 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,” contending they put UK plants at a disadvantage against international competitors. It is noted that most chemicals and plastics are not covered from the UK's initial carbon import tax.
Future 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 efficient chemical plants in Europe and to protect 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 more polluting operations abroad.”
Colin Pritchard, head of sustainability for the company's chemicals unit, indicated the Grangemouth money would be used to enhance energy efficiency, cut carbon emissions, and boost overall performance.
He noted the site, which uses an processing unit utilising North Sea gas and imported 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 previously received substantial 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 leave the EU.
