Industrial Firms Controlled by Billionaire Sir Jim Ratcliffe Obtained Up to £70m in British Government Support Over the Last Four-Year Period

Before this week's £50m state rescue package for its Scottish plant, industrial firms under the ownership of billionaire Sir Jim Ratcliffe were already awarded up to £70m in UK state aid over the past four years.

Latest Revelations and Financial Support

Based on government disclosures released recently, public funding to the Ineos group in the most recent year ranged from £16m and £38m. Since August 2022, 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, fearing that without it the UK would cease to have its sole facility producing ethylene—a critical feedstock for plastics. The government also backed a £75m credit guarantee, while Ineos committed to invest £30m of its own funds.

Plant Closure and Wider Challenges

This support comes following Ineos closed the adjacent 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, reportedly requested government assistance in October. The request comes at a time when the wide-ranging Ineos group, controlled by the 73-year-old, has been under considerable economic strain, partly due to sharply increased energy costs following Russia's full-scale invasion of Ukraine.

Reflecting growing unease 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 Ineos Grenadier automotive project and the turnaround of Manchester United, in which he holds a partial ownership.

Form of Support and Company Statements

Most the earlier government support was delivered in the form of tax breaks in exchange for “voluntary agreements to reduce energy use 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 said the aid did not constitute “favourable terms” for the company, but was “granted based on strict criteria, and open to any UK business that meets the requirements.”

While Ratcliffe thanked the government for the £50m support in an official statement, Ineos also released more critical comments. In these, the billionaire launched a broadside against government policy, specifically 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. Soaring power prices and punitive carbon charges are pushing industry out of the UK at an unsustainable pace.”

In further comments, Ratcliffe described carbon taxes as “the most idiotic tax in the world,” arguing they place 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 border adjustment mechanism.

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 safeguard skilled jobs. British industry has had a brutal year, yet everyone relies on this industry every day. Should we fail to manufacture these critical products 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, said the new funding would be used to enhance energy efficiency, cut carbon emissions, and upgrade overall performance.

He explained the site, which uses an processing unit utilising North Sea gas and imported liquefied petroleum gas, had been under “extreme pressure” from surging energy costs and the UK's carbon taxes.

Records show that Ineos has previously received significant 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 exit the European Union.