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Before the recent £50m state rescue package for its Grangemouth facility, industrial firms controlled by billionaire Sir Jim Ratcliffe were already awarded up to £70m in UK state aid during the previous four-year period.

Recent Revelations and Bailout Package

Based on government disclosures released this week, public funding to the Ineos group in the most recent year ranged from £16m and £38m. Since August 2022, the company has obtained a total of £28m and £70m.

Authorities intervened on Tuesday to grant Ineos with £50m to prop up its Grangemouth operations, fearing that without it the UK would lose its sole facility producing ethylene—a vital raw material for plastics. The government also backed a £75m credit guarantee, while Ineos committed to invest £30m of its own funds.

Plant Closure and Wider Challenges

This support arrives following Ineos shut down the adjacent oil refinery in late 2024, costing 400 jobs—a move described as a huge blow to the local community and a challenge for the government.

The billionaire, with an estimated net worth of $14.5bn, is understood to have asked for government help in October. The request coincides with the wide-ranging Ineos group, controlled by the 73-year-old, has faced significant financial pressure, partly due to sharply increased energy costs in the wake of Russia's 2022 invasion of Ukraine.

In a sign of increasing concern over its ability to manage debt, Fitch Ratings lowered 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 the football club, in which he holds a partial ownership.

Nature of Aid and Company Statements

Most the previous state aid was delivered in the form of tax relief in exchange for “commitments to curb consumption and carbon dioxide emissions.” Figures for these relief schemes for Ineos's sites in Grangemouth and Hull are reported as ranges rather than exact amounts.

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

Although Ratcliffe thanked the government for the £50m support in an announcement, Ineos also released sharper remarks. In these, the industrialist launched a broadside against government policy, including carbon taxes paid by industrial users.

“The answer is NOT decarbonisation by deindustrialisation,” Ratcliffe wrote. “Lacking a robust manufacturing base, the economy will continue to decline. Soaring power prices and punitive carbon charges are driving industry out of the UK at an alarming rate.”

Speaking elsewhere, Ratcliffe described carbon taxes as “an extremely foolish levy in the world,” contending they put UK plants at a disadvantage against international competitors. It is noted that most chemicals and plastics are not covered from the UK's planned carbon border adjustment mechanism.

Investment and Sustainability Claims

The Ineos representative added: “Ineos has invested over £400m at Grangemouth in the last five years to keep it as one of the most productive chemical plants in Europe and to safeguard skilled jobs. The UK chemicals sector has had a very difficult 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 more polluting operations abroad.”

A senior Ineos executive, head of sustainability for the company's Olefins & Polymers division, said the Grangemouth money would be used to improve energy efficiency, reduce carbon emissions, and boost overall performance.

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

Records show that Ineos has in the past obtained substantial tax breaks from the EU, valued at hundreds of millions of euros—notably while Ratcliffe was a prominent backer of the campaign for the UK to exit the European Union.