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

Latest Revelations and Bailout Package

According to government disclosures released this week, state aid to the Ineos group in the last year alone was between £16m and £38m. From August 2022 onwards, the company 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 lose its last remaining facility manufacturing ethylene—a critical feedstock for plastics. Officials additionally supported a £75m credit guarantee, while Ineos pledged to invest £30m of its private capital.

Plant Closure and Wider Challenges

This intervention comes after Ineos closed the neighbouring oil refinery in September 2024, resulting in the loss of 400 jobs—a move described as a significant setback to the area and a challenge for the government.

The billionaire, with an estimated net worth of $14.5bn, is understood to have requested government help 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 increasing concern 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 efforts to revitalise 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 relief in return for “voluntary agreements to curb consumption and carbon dioxide emissions.” Figures for these tax breaks for Ineos's plants 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 “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 separately issued sharper remarks. In these, the industrialist launched a broadside against government policy, specifically carbon taxes levied on industrial users.

“The answer is NOT decarbonisation by deindustrialisation,” he stated. “Without a strong manufacturing base, the economy will falter. Soaring power prices and burdensome carbon levies are pushing industry out of the UK at an unsustainable pace.”

Speaking elsewhere, Ratcliffe described carbon taxes as “an extremely foolish levy in the world,” contending 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 planned 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 productive 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 imported instead, often from higher-carbon production abroad.”

Colin Pritchard, head of sustainability for the company's Olefins & Polymers division, said the new funding would be used to enhance energy efficiency, reduce carbon emissions, and boost overall performance.

He noted the site, which uses an processing unit running on North Sea gas and imported liquefied petroleum gas, had been under “intense strain” from surging energy costs and the UK's carbon taxes.

It has also been reported that Ineos has previously received significant tax breaks from the EU, valued at hundreds of millions of euros—notably while Ratcliffe was a leading supporter of the campaign for the UK to exit the European Union.