🔗 Share this article

Prior to this week's £50m state rescue package for its Grangemouth facility, chemical companies under the ownership of billionaire Sir Jim Ratcliffe were already awarded as much as £70m in British government support during the previous four-year period.

Latest Disclosures and Financial Support

Based on official data released this week, public funding to the Ineos group in the last year alone was between £16m and £38m. Since August 2022, the company has received a total of £28m and £70m.

The government stepped in this week to grant Ineos with £50m to support its Grangemouth operations, concerned that without it the UK would cease to have its last remaining facility producing 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 Wider Challenges

This support comes after Ineos closed the neighbouring oil refinery in September 2024, resulting in the loss of 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 requested government help in October. The request comes at a time when the expansive Ineos group, under the control of the 73-year-old, has been under considerable economic strain, partly due to soaring energy costs in the wake of Russia's 2022 invasion of Ukraine.

In a sign of growing unease over its financial health, Fitch Ratings downgraded Ineos's debt rating in September. Ratcliffe has also had to commit substantial resources into his off-road vehicle venture and the turnaround of the football club, in which he holds a partial ownership.

Form of Support and Official Responses

The majority of the earlier government support was delivered in the form of tax relief in return for “commitments 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 exact amounts.

An Ineos representative stated the aid did not represent “special treatment” for the company, but was “awarded against strict criteria, and available to any UK business that meets the requirements.”

While Ratcliffe publicly welcomed the £50m support in an announcement, Ineos also released sharper remarks. In these, the industrialist 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 pushing industry out of the UK at an alarming rate.”

In further comments, Ratcliffe described carbon taxes as “an extremely foolish levy in the world,” arguing they put UK plants at a competitive disadvantage against international competitors. It is noted that most chemicals and plastics are not covered from the UK's initial carbon import tax.

Future Environmental Pledges

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 productive chemical plants in Europe and to protect skilled jobs. British industry has had a brutal year, yet everyone relies on this industry every day. Should we fail to manufacture these essential materials in the UK, they are brought in from overseas, often from higher-carbon production abroad.”

Colin Pritchard, head of sustainability for the company's Olefins & Polymers division, indicated the Grangemouth money would be used to improve energy efficiency, cut carbon emissions, and upgrade plant performance.

He noted the site, which uses an ethylene cracker utilising North Sea gas and US-sourced 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 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 leave the EU.