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Prior to the recent £50m state rescue package for its Grangemouth facility, chemical companies controlled by tycoon Sir Jim Ratcliffe were already awarded as much as £70m in British government support over the past four years.

Latest Revelations and Financial Support

Based on official data released recently, state aid to the Ineos group in the last year alone ranged from £16m and £38m. Since August 2022, the conglomerate has received between £28m and £70m.

Authorities intervened on Tuesday to provide Ineos with £50m to support its Grangemouth operations, concerned that otherwise the UK would cease to have its last remaining facility manufacturing ethylene—a critical raw material for plastics. Officials additionally supported a £75m credit guarantee, while Ineos pledged to invest £30m of its own funds.

Refinery Shutdown and Broader Context

This intervention arrives following Ineos shut down the neighbouring oil refinery in late 2024, resulting in the loss of 400 jobs—a move described as a significant setback to the local community and a political problem for the government.

Ratcliffe, who is worth $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 been under considerable economic strain, in part due to soaring energy costs in the wake of Russia's full-scale invasion of Ukraine.

In a sign of increasing concern over its financial health, the credit rating agency lowered Ineos's debt rating in September. Ratcliffe has also been required to invest substantial resources into his Ineos Grenadier automotive project and efforts to revitalise Manchester United, in which he holds a partial ownership.

Form of Support and Official Responses

Most the earlier government support came in the form of tax relief in exchange 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 precise figures.

An Ineos representative said the aid did not constitute “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 official statement, Ineos separately issued more critical comments. In these, the billionaire strongly criticised government policy, specifically carbon taxes paid by industrial users.

“The answer is NOT decarbonisation by deindustrialisation,” he stated. “Without a strong manufacturing base, the economy will continue to decline. High energy costs and burdensome carbon levies 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 not covered from the UK's planned carbon import tax.

Investment and 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 productive chemical plants in Europe and to safeguard 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 brought in from overseas, often from more polluting operations abroad.”

Colin Pritchard, head of sustainability for the company's chemicals unit, said the new funding would be used to enhance energy efficiency, cut carbon emissions, and boost overall performance.

He explained the site, which uses an processing unit running on North Sea gas and imported liquefied petroleum gas, had been under “extreme pressure” 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, valued at hundreds of millions of euros—interestingly while Ratcliffe was a prominent backer of the campaign for the UK to leave the EU.