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Before the recent £50m state rescue package for its Scottish plant, industrial firms under the ownership of tycoon Jim Ratcliffe were already awarded up to £70m in British government support over the past four years.

Recent Disclosures and Financial Support

Based on government disclosures published this week, state aid to the Ineos group in the last year alone was between £16m and £38m. From August 2022 onwards, the company has received between £28m and £70m.

The government stepped in on Tuesday to provide Ineos with £50m to support its Grangemouth operations, fearing that otherwise the UK would lose its sole facility producing ethylene—a vital raw material for plastics. The government also backed a £75m loan guarantee, while Ineos committed to invest £30m of its private capital.

Plant Closure and Wider Challenges

This support comes following Ineos closed the adjacent 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.

The billionaire, with an estimated net worth of $14.5bn, reportedly requested government assistance in October. The request comes at a time when the wide-ranging Ineos group, under the control of the 73-year-old, has been under considerable economic strain, partly due to soaring energy costs following Russia's 2022 invasion of Ukraine.

In a sign of increasing concern over its ability to manage debt, the credit rating agency lowered Ineos's debt rating in September. Ratcliffe has also been required to invest significant funds into his off-road vehicle venture and efforts to revitalise Manchester United, in which he holds a minority stake.

Nature of Aid and Company Statements

The majority of the previous state aid was delivered in the form of tax relief in return for “voluntary agreements to reduce energy use and CO2 output.” The value of these tax breaks for Ineos's sites in Grangemouth and Hull were given as estimates rather than precise figures.

An Ineos spokesperson 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 qualifies.”

Although Ratcliffe thanked the government for the £50m support in an announcement, Ineos also released more critical comments. In these, the billionaire launched a broadside against government policy, including carbon taxes levied on industrial users.

“The solution is not decarbonisation by deindustrialisation,” he stated. “Without a strong manufacturing base, the economy will falter. Soaring power prices and punitive carbon charges are driving industry out of the UK at an unsustainable pace.”

Speaking elsewhere, Ratcliffe described 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 planned carbon import tax.

Investment and Environmental Pledges

The Ineos representative 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 safeguard skilled jobs. British industry has had a brutal year, yet society depends on this industry every day. If we don't produce these essential materials in the UK, they are imported instead, often from higher-carbon production abroad.”

A senior Ineos executive, head of sustainability for the company's Olefins & Polymers division, said the new funding would be used to improve energy efficiency, reduce carbon emissions, and boost plant 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 previously received substantial tax breaks from the EU, worth hundreds of millions of euros—interestingly while Ratcliffe was a leading supporter of the campaign for the UK to leave the EU.