🔗 Share this article

Before this week's £50m government bailout for its Scottish plant, chemical companies under the ownership of tycoon Jim Ratcliffe had already been granted as much as £70m in British government support during the previous four-year period.

Latest Revelations and Bailout Package

Based on official data released this week, public funding to the Ineos group in the most recent year ranged from £16m and £38m. Since August 2022, the conglomerate has received between £28m and £70m.

The government stepped in on Tuesday to provide Ineos with £50m to support its Scottish ethylene plant, concerned that without it the UK would cease to have its last remaining facility producing ethylene—a critical feedstock for plastics. The government also backed a £75m loan guarantee, while Ineos committed to invest £30m of its private capital.

Refinery Shutdown and Broader Context

This intervention comes following Ineos shut down the adjacent oil refinery in late 2024, resulting in the loss of 400 jobs—a move described as a significant setback to the area and a challenge for the government.

Ratcliffe, who is worth $14.5bn, is understood to have asked for government assistance in October. This appeal comes at a time when the wide-ranging Ineos group, under the control of the 73-year-old, has been under significant financial pressure, partly due to soaring energy costs in the wake of Russia's 2022 invasion of Ukraine.

Reflecting growing unease over its ability to manage debt, the credit rating agency lowered Ineos's debt rating in September. Ratcliffe has also had to commit significant funds into his Ineos Grenadier automotive project and the turnaround of the football club, in which he holds a minority stake.

Nature of Aid and Company Statements

Most the earlier government support came in the form of tax breaks in return for “commitments 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 exact amounts.

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

Although Ratcliffe publicly welcomed the £50m support in an official statement, Ineos also released more critical comments. In these, the industrialist launched a broadside against government policy, specifically 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 unsustainable pace.”

Speaking elsewhere, Ratcliffe described carbon taxes as “an extremely foolish levy in the world,” arguing they put UK plants at a competitive 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 Environmental Pledges

The Ineos representative further stated: “Ineos has invested over £400m at Grangemouth in the last five years to maintain its status as one of the most efficient chemical plants in Europe and to protect skilled jobs. British industry has had a brutal year, yet everyone relies on this industry every day. Should we fail to manufacture these essential materials in the UK, they are imported instead, 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 improve energy efficiency, cut carbon emissions, and boost overall performance.

He explained 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, worth hundreds of millions of euros—notably while Ratcliffe was a prominent backer of the campaign for the UK to exit the European Union.