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Prior to the recent £50m government bailout for its Scottish plant, industrial firms under the ownership of tycoon Sir Jim Ratcliffe were already awarded as much as £70m in UK state aid during the previous four-year period.

Recent Disclosures and Bailout Package

Based on government disclosures published recently, public funding to the Ineos group in the most recent year ranged from £16m and £38m. Since August 2022, the conglomerate has received a total of £28m and £70m.

Authorities intervened this week to grant Ineos with £50m to prop up its Grangemouth operations, concerned that otherwise the UK would cease to have its sole facility manufacturing ethylene—a critical feedstock for plastics. Officials additionally supported a £75m loan guarantee, while Ineos committed to invest £30m of its private capital.

Plant Closure and Broader Context

This intervention comes following Ineos shut down the neighbouring oil refinery in September 2024, costing 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 coincides with the wide-ranging Ineos group, under the control of the 73-year-old, has faced significant financial pressure, in part due to soaring energy costs following Russia's 2022 invasion of Ukraine.

Reflecting increasing concern over its financial health, the credit rating agency lowered Ineos's credit rating in September. Ratcliffe has also had to commit significant funds into his off-road vehicle venture and the turnaround of the football club, in which he holds a partial ownership.

Nature of Aid and Official Responses

The majority of the previous state aid came in the form of tax relief in return for “voluntary agreements to curb consumption and CO2 output.” Figures for these relief schemes for Ineos's plants in Grangemouth and Hull are reported as ranges rather than exact amounts.

An Ineos representative stated the aid did not represent “favourable terms” 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 announcement, Ineos separately issued more critical comments. In these, the billionaire launched a broadside against government policy, specifically carbon taxes paid by industrial users.

“The answer is NOT decarbonisation by deindustrialisation,” Ratcliffe wrote. “Lacking a robust manufacturing base, the economy will continue to decline. High energy costs and punitive carbon charges are driving 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 place UK plants at a disadvantage against foreign rivals. It is noted that most chemicals and plastics are not covered from the UK's planned carbon import tax.

Future Sustainability Claims

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 efficient chemical plants in Europe and to safeguard skilled jobs. The UK chemicals sector has had a very difficult year, yet society depends on this industry every day. Should we fail to manufacture these critical products in the UK, they are imported instead, often from higher-carbon production abroad.”

Colin Pritchard, head of sustainability for the company's chemicals unit, said the Grangemouth money would be used to improve energy efficiency, cut carbon emissions, and upgrade overall performance.

He noted the site, which uses an processing unit utilising 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 in the past obtained 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.