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Before the recent £50m state rescue package for its Grangemouth facility, chemical companies under the ownership of tycoon 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 official data published recently, 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.

Authorities intervened this week to grant Ineos with £50m to support its Grangemouth operations, concerned that otherwise the UK would lose its last remaining facility manufacturing ethylene—a critical feedstock for plastics. The government also backed a £75m credit guarantee, while Ineos pledged to invest £30m of its own funds.

Plant Closure and Wider Challenges

This intervention comes following Ineos closed the neighbouring oil refinery in late 2024, costing 400 jobs—a move described as a huge blow to the area 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 expansive Ineos group, under the control of the 73-year-old, has faced significant financial pressure, in part due to sharply increased energy costs following Russia's 2022 invasion of Ukraine.

Reflecting increasing concern over its ability to manage debt, Fitch Ratings downgraded Ineos's credit rating in September. Ratcliffe has also had to commit substantial resources into his Ineos Grenadier automotive project and the turnaround of Manchester United, in which he holds a minority stake.

Nature of Aid and Company Statements

The majority of the earlier government support was delivered in the form of tax breaks in return for “commitments to reduce energy use and CO2 output.” Figures for these relief schemes for Ineos's sites 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 open to any UK business that qualifies.”

While Ratcliffe publicly welcomed the £50m support in an official statement, Ineos separately issued sharper remarks. In these, the billionaire strongly criticised 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 falter. High energy costs and punitive carbon charges are pushing 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 put UK plants at a competitive disadvantage against international competitors. Currently, most chemicals and plastics are not covered from the UK's initial carbon import tax.

Investment and Environmental Pledges

The Ineos spokesperson further stated: “Ineos has invested over £400m at Grangemouth in the last five years to keep it as one of the most efficient 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. 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 chemicals unit, indicated the Grangemouth money would be used to enhance energy efficiency, cut carbon emissions, and upgrade overall performance.

He noted the site, which uses an processing unit utilising North Sea gas and imported 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 previously received significant 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.