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Before this week's £50m government bailout for its Grangemouth facility, industrial firms under the ownership of tycoon Jim Ratcliffe were already awarded up to £70m in UK state aid during the previous four-year period.

Recent Disclosures and Financial Support

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

The government stepped in this week to grant Ineos with £50m to support its Scottish ethylene plant, fearing that without it the UK would lose its sole facility producing 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 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 political problem for the government.

Ratcliffe, who is worth $14.5bn, is understood to have asked for government help in October. This appeal comes at a time when the wide-ranging 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 2022 invasion of Ukraine.

In a sign of growing unease over its ability to manage debt, the credit rating agency lowered Ineos's credit rating in September. Ratcliffe has also been required to invest significant funds into his Ineos Grenadier automotive project and efforts to revitalise Manchester United, in which he holds a partial ownership.

Nature of Aid and Company Statements

Most the previous state aid came in the form of tax breaks in return for “commitments to reduce energy use and carbon dioxide emissions.” Figures for these tax breaks for Ineos's sites in Grangemouth and Hull were given as estimates rather than precise figures.

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

Although Ratcliffe publicly welcomed the £50m support in an announcement, Ineos separately issued sharper remarks. In these, the industrialist launched a broadside against government policy, including carbon taxes paid by industrial users.

“The answer is NOT decarbonisation by deindustrialisation,” Ratcliffe wrote. “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.”

In further comments, Ratcliffe described carbon taxes as “an extremely foolish levy in the world,” arguing they put UK plants at a disadvantage against international competitors. Currently, most chemicals and plastics are not covered from the UK's planned carbon border adjustment mechanism.

Investment and Environmental Pledges

The Ineos representative further stated: “Ineos has invested over £400m at Grangemouth in the last five years to maintain its status as one of the most productive 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 chemicals unit, said the Grangemouth money would be used to improve energy efficiency, cut carbon emissions, and boost overall performance.

He explained 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.

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