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Before the recent £50m state rescue package for its Scottish plant, industrial firms controlled by tycoon Jim Ratcliffe were already awarded as much as £70m in British government support during the previous four-year period.

Recent Disclosures and Bailout Package

According to government disclosures published this week, state aid to Ratcliffe's chemical empire in the most recent year was between £16m and £38m. From August 2022 onwards, the conglomerate 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 raw material for plastics. Officials additionally supported a £75m loan guarantee, while Ineos committed to invest £30m of its own funds.

Refinery Shutdown and Wider Challenges

This intervention comes following Ineos closed the neighbouring oil refinery in late 2024, costing 400 jobs—a move described as a significant setback to the local community and a challenge for the government.

Ratcliffe, who is worth $14.5bn, reportedly asked for government help in October. This appeal comes at a time when the wide-ranging 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 ability to manage debt, the credit rating agency lowered Ineos's debt rating in September. Ratcliffe has also had to commit significant funds into his off-road vehicle venture and efforts to revitalise 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 breaks in exchange for “voluntary agreements to curb consumption and CO2 output.” The value of these relief schemes for Ineos's plants in Grangemouth and Hull were given as estimates 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 open to any UK business that qualifies.”

While Ratcliffe thanked the government for the £50m support in an announcement, Ineos separately issued sharper remarks. In these, the billionaire launched a broadside against government policy, including carbon taxes levied on industrial users.

“The answer is NOT decarbonisation by deindustrialisation,” Ratcliffe wrote. “Lacking a robust manufacturing base, the economy will falter. 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,” contending they place UK plants at a disadvantage against foreign rivals. Currently, most chemicals and plastics are not covered from the UK's planned 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 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 everyone relies on this industry every day. If we don't produce these critical products in the UK, they are brought in from overseas, often from higher-carbon production abroad.”

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

He noted the site, which uses an ethylene cracker running on North Sea gas and imported 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 leave the EU.