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Prior to this week's £50m state rescue package for its Grangemouth facility, chemical companies controlled by billionaire Sir Jim Ratcliffe were already awarded up to £70m in UK state aid over the past four years.

Latest Disclosures and Bailout Package

Based on official data released recently, state aid 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.

Authorities intervened on Tuesday to grant Ineos with £50m to support its Scottish ethylene plant, concerned that without it the UK would lose its sole facility manufacturing ethylene—a vital feedstock for plastics. The government also backed a £75m loan guarantee, while Ineos pledged to invest £30m of its own funds.

Refinery Shutdown and Broader Context

This support arrives after Ineos closed the adjacent oil refinery in September 2024, costing 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 asked for government assistance in October. The request coincides with the expansive Ineos group, under the control of the 73-year-old, has been under significant financial pressure, partly due to sharply increased energy costs in the wake of Russia's full-scale invasion of Ukraine.

Reflecting increasing concern over its ability to manage debt, the credit rating agency lowered Ineos's debt rating in September. Ratcliffe has also been required to invest substantial resources into his off-road vehicle venture and efforts to revitalise the football club, in which he holds a partial ownership.

Nature of Aid and Company Statements

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

An Ineos representative said the aid did not represent “favourable terms” for the company, but was “awarded against strict criteria, and open to any UK business that meets the requirements.”

Although Ratcliffe thanked the government for the £50m support in an official statement, Ineos also released sharper remarks. In these, the billionaire launched a broadside against government policy, specifically carbon taxes levied on industrial users.

“The answer 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 unsustainable pace.”

Speaking elsewhere, Ratcliffe labelled carbon taxes as “the most idiotic tax in the world,” arguing they put UK plants at a disadvantage against foreign rivals. Currently, most chemicals and plastics are excluded from the UK's planned carbon import tax.

Investment and Sustainability Claims

The Ineos spokesperson added: “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 brutal year, yet everyone relies on this industry every day. If we don't produce these essential materials in the UK, they are imported instead, often from more polluting operations abroad.”

A senior Ineos executive, head of sustainability for the company's Olefins & Polymers division, indicated the new funding would be used to enhance energy efficiency, reduce carbon emissions, and upgrade plant performance.

He explained the site, which uses an ethylene cracker 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 substantial tax breaks from the EU, worth hundreds of millions of euros—notably while Ratcliffe was a leading supporter of the campaign for the UK to exit the European Union.