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Before this week's £50m state rescue package for its Scottish plant, chemical companies under the ownership of billionaire Sir Jim Ratcliffe were already awarded up to £70m in UK state aid during the previous four-year period.

Latest Revelations and Bailout Package

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

Authorities intervened this week to provide Ineos with £50m to prop up its Scottish ethylene plant, fearing that otherwise the UK would cease to have its sole facility manufacturing ethylene—a vital raw material for plastics. The government also backed a £75m credit guarantee, while Ineos committed to invest £30m of its private capital.

Plant Closure and Broader Context

This intervention comes following Ineos shut down the adjacent 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.

The billionaire, with an estimated net worth of $14.5bn, reportedly requested government help in October. The request coincides with the wide-ranging Ineos group, controlled by the 73-year-old, has faced considerable economic strain, partly due to soaring energy costs following Russia's full-scale invasion of Ukraine.

Reflecting growing unease over its financial health, Fitch Ratings downgraded Ineos's credit rating in September. Ratcliffe has also been required to invest substantial resources into his off-road vehicle venture and efforts to revitalise Manchester United, in which he holds a partial ownership.

Form of Support and Company Statements

Most the previous state aid was delivered in the form of tax relief in exchange for “voluntary agreements to curb consumption and CO2 output.” Figures for these tax breaks for Ineos's plants in Grangemouth and Hull are reported as ranges rather than precise figures.

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

While Ratcliffe publicly welcomed the £50m support in an official statement, 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. “Lacking a robust manufacturing base, the economy will continue to decline. Soaring power prices and burdensome carbon levies are driving industry out of the UK at an unsustainable pace.”

In further comments, Ratcliffe described carbon taxes as “an extremely foolish levy in the world,” arguing they place UK plants at a competitive disadvantage against foreign rivals. It is noted that most chemicals and plastics are not covered from the UK's initial 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 protect skilled jobs. The UK chemicals sector 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 higher-carbon production abroad.”

Colin Pritchard, head of sustainability for the company's Olefins & Polymers division, indicated the Grangemouth money would be used to enhance energy efficiency, reduce carbon emissions, and upgrade 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—interestingly while Ratcliffe was a prominent backer of the campaign for the UK to exit the European Union.