Chemical Companies Owned by Billionaire Jim Ratcliffe Received As Much As £70m in UK Government Support In the Last Four-Year Period
Prior to the recent £50m government bailout for its Scottish plant, chemical companies controlled by billionaire Sir Jim Ratcliffe had already been granted as much as £70m in British government support over the past four years.
Latest Disclosures and Financial Support
According to official data published recently, public funding to Ratcliffe's chemical empire in the most recent year ranged from £16m and £38m. From August 2022 onwards, the company has obtained a total of £28m and £70m.
Authorities intervened this week to provide Ineos with £50m to prop up its Scottish ethylene plant, concerned that without it the UK would lose its sole facility manufacturing ethylene—a critical feedstock for plastics. The government also backed a £75m loan guarantee, while Ineos pledged to invest £30m of its own funds.
Plant Closure and Broader Context
This intervention arrives after Ineos closed 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 political problem for the government.
The billionaire, with an estimated net worth of $14.5bn, reportedly asked for government help in October. This appeal coincides with the wide-ranging Ineos group, controlled by the 73-year-old, has been under significant financial pressure, in part due to sharply increased energy costs following Russia's full-scale invasion of Ukraine.
In a sign of growing unease over its ability to manage debt, the credit rating agency downgraded Ineos's debt rating in September. Ratcliffe has also been required to invest substantial resources into his off-road vehicle venture and the turnaround of Manchester United, in which he holds a minority stake.
Form of Support and Official Responses
The majority of the earlier government support came in the form of tax breaks in return for “commitments to curb consumption and CO2 output.” The value of these relief schemes for Ineos's sites in Grangemouth and Hull are reported as ranges rather than precise figures.
An Ineos spokesperson stated 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 publicly welcomed the £50m support in an announcement, 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,” he stated. “Lacking a robust manufacturing base, the economy will falter. Soaring power prices and punitive carbon charges are driving industry out of the UK at an alarming rate.”
In further comments, Ratcliffe labelled carbon taxes as “an extremely foolish levy in the world,” arguing they place UK plants at a competitive disadvantage against international competitors. It is noted that most chemicals and plastics are excluded from the UK's initial carbon import tax.
Future Environmental Pledges
The Ineos representative further stated: “Ineos has invested over £400m at Grangemouth in the last five years to keep it as one of the most efficient chemical plants in Europe and to safeguard skilled jobs. British industry has had a brutal year, yet society depends on this industry every day. Should we fail to manufacture these essential materials in the UK, they are imported instead, often from higher-carbon production abroad.”
Colin Pritchard, head of sustainability for the company's chemicals unit, indicated the new funding would be used to improve energy efficiency, cut carbon emissions, and upgrade overall performance.
He explained the site, which uses an ethylene cracker 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 previously received significant tax breaks from the EU, valued at hundreds of millions of euros—interestingly while Ratcliffe was a leading supporter of the campaign for the UK to exit the European Union.
