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Prior to this week's £50m state rescue package for its Grangemouth facility, industrial firms controlled by billionaire Sir Jim Ratcliffe had already been granted up to £70m in UK state aid over the past four years.

Recent Revelations and Bailout Package

Based on government disclosures released this week, public funding to the Ineos group in the most recent year was between £16m and £38m. From August 2022 onwards, the conglomerate has obtained a total of £28m and £70m.

Authorities intervened this week to grant Ineos with £50m to support its Scottish ethylene plant, fearing that otherwise the UK would lose its sole facility manufacturing ethylene—a vital feedstock for plastics. Officials additionally supported a £75m loan guarantee, while Ineos committed to invest £30m of its own funds.

Refinery Shutdown and Broader Context

This support comes after Ineos shut down the neighbouring oil refinery in late 2024, resulting in the loss of 400 jobs—a move described as a huge blow to the area and a challenge for the government.

Ratcliffe, who is worth $14.5bn, reportedly asked for government help in October. The request coincides with the expansive Ineos group, under the control of the 73-year-old, has faced considerable economic strain, partly due to soaring energy costs following Russia's 2022 invasion of Ukraine.

In a sign of growing unease over its financial health, Fitch Ratings lowered Ineos's debt rating in September. Ratcliffe has also been required to invest significant funds into his Ineos Grenadier automotive project and the turnaround of 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 “voluntary agreements to curb consumption and CO2 output.” The value of these tax breaks for Ineos's plants in Grangemouth and Hull were given as estimates rather than exact amounts.

An Ineos spokesperson said the aid did not constitute “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 also released sharper remarks. In these, the industrialist strongly criticised government policy, specifically carbon taxes paid by industrial users.

“The answer is NOT decarbonisation by deindustrialisation,” he stated. “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 alarming rate.”

In further comments, Ratcliffe described carbon taxes as “the most idiotic tax in the world,” arguing they place UK plants at a disadvantage against international competitors. Currently, most chemicals and plastics are excluded from the UK's initial 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. British industry has had a very difficult year, yet everyone relies on this industry every day. Should we fail to manufacture these critical products in the UK, they are imported instead, often from more polluting operations abroad.”

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

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

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