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Before the recent £50m government bailout for its Scottish plant, industrial firms controlled by tycoon Sir Jim Ratcliffe were already awarded as much as £70m in British government support over the past four years.

Recent Disclosures and Bailout Package

According to government disclosures released recently, public funding to the Ineos group in the most recent year was between £16m and £38m. From August 2022 onwards, the company has obtained between £28m and £70m.

The government stepped in this week to provide Ineos with £50m to support its Scottish ethylene plant, concerned that without it the UK would cease to have its sole facility producing ethylene—a critical raw material for plastics. The government also backed a £75m credit guarantee, while Ineos pledged to invest £30m of its own funds.

Plant Closure and Broader Context

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

Ratcliffe, who is worth $14.5bn, reportedly requested government assistance in October. This appeal comes at a time when the expansive Ineos group, controlled by the 73-year-old, has faced significant financial pressure, in part due to sharply increased energy costs in the wake of Russia's 2022 invasion of Ukraine.

Reflecting increasing concern over its ability to manage debt, the credit rating agency lowered Ineos's credit rating in September. Ratcliffe has also had to commit significant funds into his Ineos Grenadier automotive project and the turnaround of the football club, in which he holds a partial ownership.

Nature of Aid and Company Statements

Most the previous state aid was delivered in the form of tax breaks in return for “voluntary agreements to curb consumption and carbon dioxide emissions.” The value of these tax breaks for Ineos's sites in Grangemouth and Hull are reported as ranges rather than precise figures.

An Ineos spokesperson stated the aid did not constitute “special treatment” for the company, but was “granted based on strict criteria, and available to any UK business that qualifies.”

Although Ratcliffe publicly welcomed the £50m support in an official statement, Ineos separately issued 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,” Ratcliffe wrote. “Without a strong manufacturing base, the economy will falter. High energy costs and burdensome carbon levies are driving industry out of the UK at an alarming rate.”

Speaking elsewhere, Ratcliffe labelled carbon taxes as “the most idiotic tax in the world,” contending they place 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 border adjustment mechanism.

Future Environmental Pledges

The Ineos spokesperson further stated: “Ineos has invested over £400m at Grangemouth in the last five years to maintain its status 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. If we don't produce these essential materials in the UK, they are imported instead, often from higher-carbon production abroad.”

A senior Ineos executive, head of sustainability for the company's chemicals unit, indicated the Grangemouth money would be used to improve energy efficiency, reduce carbon emissions, and boost overall performance.

He noted the site, which uses an ethylene cracker running on North Sea gas and US-sourced liquefied petroleum gas, had been under “intense strain” from rocketing energy costs and the UK's carbon taxes.

It has also been reported that Ineos has previously received significant tax breaks from the EU, worth hundreds of millions of euros—interestingly while Ratcliffe was a prominent backer of the campaign for the UK to exit the European Union.