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Prior to the recent £50m state rescue package for its Scottish plant, industrial firms under the ownership of tycoon Sir Jim Ratcliffe were already awarded as much as £70m in UK state aid during the previous four-year period.

Latest Revelations and Bailout Package

Based on government disclosures published this week, state aid to the Ineos group in the most recent year was between £16m and £38m. From August 2022 onwards, the conglomerate has obtained between £28m and £70m.

The government stepped in this week to grant Ineos with £50m to prop up its Scottish ethylene plant, fearing that without it the UK would lose its last remaining facility manufacturing ethylene—a critical feedstock for plastics. Officials additionally supported a £75m loan guarantee, while Ineos committed to invest £30m of its private capital.

Refinery Shutdown and Broader Context

This intervention arrives after Ineos shut down the neighbouring oil refinery in late 2024, costing 400 jobs—a move described as a significant setback to the area and a political problem for the government.

The billionaire, with an estimated net worth of $14.5bn, is understood to have asked for government assistance in October. The request coincides with the expansive Ineos group, under the control of 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 increasing concern over its ability to manage debt, Fitch Ratings downgraded Ineos's debt rating in September. Ratcliffe has also had to commit significant funds into his off-road vehicle venture and the turnaround of Manchester United, in which he holds a partial ownership.

Nature of Aid and Company Statements

The majority of the previous state aid came in the form of tax breaks in exchange for “commitments to reduce energy use and CO2 output.” Figures for these tax breaks for Ineos's plants in Grangemouth and Hull are reported as ranges rather than exact amounts.

An Ineos representative said 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 thanked the government for 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 solution is not decarbonisation by deindustrialisation,” Ratcliffe wrote. “Without a strong manufacturing base, the economy will continue to decline. High energy costs and burdensome carbon levies are pushing industry out of the UK at an alarming rate.”

In further comments, Ratcliffe described carbon taxes as “an extremely foolish levy in the world,” contending 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 Sustainability Claims

The Ineos representative added: “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 brutal year, yet society depends on this industry every day. Should we fail to manufacture these essential materials 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 Olefins & Polymers division, indicated the new funding would be used to improve energy efficiency, cut carbon emissions, and upgrade overall performance.

He noted the site, which uses an ethylene cracker 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 substantial tax breaks from the EU, valued at hundreds of millions of euros—interestingly while Ratcliffe was a leading supporter of the campaign for the UK to exit the European Union.