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Before the recent £50m state rescue package for its Scottish plant, chemical companies under the ownership of billionaire Jim Ratcliffe had already been granted up to £70m in UK state aid during the previous four-year period.

Recent Revelations and Financial Support

According to government disclosures published 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 grant Ineos with £50m to prop up its Grangemouth operations, concerned that without it the UK would cease to have its last remaining facility producing ethylene—a vital feedstock for plastics. Officials additionally supported a £75m loan guarantee, while Ineos pledged to invest £30m of its private capital.

Plant Closure and Broader Context

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

The billionaire, with an estimated net worth of $14.5bn, is understood to have requested government help in October. This appeal comes at a time when the expansive Ineos group, controlled by the 73-year-old, has been under considerable economic strain, partly due to sharply increased energy costs following Russia's 2022 invasion of Ukraine.

In a sign of growing unease 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 off-road vehicle venture and the turnaround of Manchester United, in which he holds a minority stake.

Form of Support and Company Statements

Most the earlier government support was delivered in the form of tax relief in exchange for “commitments to curb consumption and CO2 output.” The value of these relief schemes for Ineos's sites in Grangemouth and Hull are reported as ranges rather than exact amounts.

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

While Ratcliffe publicly welcomed the £50m support in an official statement, Ineos separately issued more critical comments. In these, the industrialist launched a broadside against government policy, including carbon taxes levied on industrial users.

“The solution is not decarbonisation by deindustrialisation,” he stated. “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 labelled carbon taxes as “an extremely foolish levy in the world,” contending they place UK plants at a disadvantage against international competitors. Currently, most chemicals and plastics are excluded from the UK's planned carbon import tax.

Investment and Sustainability Claims

The Ineos spokesperson 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 very difficult 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.”

Colin Pritchard, head of sustainability for the company's chemicals unit, said 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 “extreme pressure” from rocketing energy costs and the UK's carbon taxes.

Records show that Ineos has previously received significant tax breaks from the EU, worth hundreds of millions of euros—notably while Ratcliffe was a leading supporter of the campaign for the UK to leave the EU.