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Prior to the recent £50m government bailout for its Scottish plant, chemical companies under the ownership of billionaire Sir Jim Ratcliffe had already been granted up to £70m in UK state aid over the past four years.

Latest Revelations and Bailout Package

Based on official data released this week, public funding to Ratcliffe's chemical empire in the most recent year ranged from £16m and £38m. From August 2022 onwards, the company has received a total of £28m and £70m.

The government stepped in on Tuesday to provide Ineos with £50m to prop up its Scottish ethylene plant, fearing that without it the UK would cease to have its sole facility producing ethylene—a vital feedstock for plastics. The government also backed a £75m loan guarantee, while Ineos committed to invest £30m of its private capital.

Plant Closure and Wider Challenges

This support arrives following Ineos shut down 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 political problem for the government.

Ratcliffe, who is worth $14.5bn, is understood to have requested government assistance in October. The request comes at a time when the expansive Ineos group, under the control of the 73-year-old, has been under considerable economic strain, in part due to sharply increased energy costs following Russia's full-scale invasion of Ukraine.

Reflecting growing unease over its ability to manage debt, Fitch Ratings lowered Ineos's debt rating in September. Ratcliffe has also had to commit significant funds into his off-road vehicle venture and efforts to revitalise Manchester United, in which he holds a minority stake.

Nature of Aid and Company Statements

The majority of the earlier government support came in the form of tax breaks in exchange for “voluntary agreements to curb consumption and carbon dioxide emissions.” The value of these tax breaks for Ineos's plants in Grangemouth and Hull are reported as ranges rather than precise figures.

An Ineos representative said the aid did not constitute “favourable terms” for the company, but was “granted based on strict criteria, and available to any UK business that qualifies.”

While Ratcliffe publicly welcomed the £50m support in an announcement, Ineos also released more critical comments. In these, the industrialist launched a broadside against government policy, including carbon taxes paid by industrial users.

“The solution is not decarbonisation by deindustrialisation,” he stated. “Lacking a robust manufacturing base, the economy will falter. Soaring power prices and burdensome carbon levies are pushing industry out of the UK at an alarming rate.”

Speaking elsewhere, Ratcliffe labelled carbon taxes as “an extremely foolish levy in the world,” arguing 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 planned 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 efficient chemical plants in Europe and to protect skilled jobs. The UK chemicals sector 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 higher-carbon production abroad.”

A senior Ineos executive, 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 “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, 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.