Industrial Companies Controlled by Tycoon Sir Jim Ratcliffe Obtained As Much As £70m in British State Aid Over the Past Four Years
Before this week's £50m state rescue package for its Scottish plant, industrial firms controlled by tycoon Sir Jim Ratcliffe had already been granted up to £70m in British government support over the past four years.
Recent Disclosures and Financial Support
Based on official data published this week, state aid to the Ineos group in the most recent year ranged from £16m and £38m. Since August 2022, the conglomerate has obtained between £28m and £70m.
Authorities intervened on Tuesday to grant Ineos with £50m to prop up its Scottish ethylene plant, concerned that otherwise the UK would cease to have its sole facility producing ethylene—a vital raw material for plastics. Officials additionally supported a £75m credit guarantee, while Ineos committed to invest £30m of its private capital.
Plant Closure and Broader Context
This support comes following Ineos shut down the adjacent oil refinery in September 2024, costing 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, reportedly asked for government assistance in October. The request comes at a time when the wide-ranging Ineos group, under the control of the 73-year-old, has faced significant financial pressure, partly due to sharply increased energy costs in the wake of Russia's 2022 invasion of Ukraine.
Reflecting growing unease over its financial health, Fitch Ratings downgraded Ineos's debt rating in September. Ratcliffe has also been required to invest significant funds into his off-road vehicle venture and efforts to revitalise the football club, in which he holds a partial ownership.
Nature of Aid and Company Statements
Most the previous state aid came in the form of tax breaks in return for “voluntary agreements to reduce energy use and carbon dioxide emissions.” Figures for these tax breaks for Ineos's plants in Grangemouth and Hull are reported as ranges rather than precise figures.
An Ineos spokesperson said the aid did not represent “favourable terms” for the company, but was “awarded against strict criteria, and available to any UK business that meets the requirements.”
Although Ratcliffe thanked the government for the £50m support in an official statement, Ineos also released more critical comments. In these, the industrialist strongly criticised government policy, including carbon taxes paid by industrial users.
“The solution is not decarbonisation by deindustrialisation,” he stated. “Without a strong 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.”
In further comments, Ratcliffe described carbon taxes as “the most idiotic tax in the world,” contending they place UK plants at a disadvantage against foreign rivals. It is noted that most chemicals and plastics are not covered from the UK's planned 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 maintain its status as one of the most productive chemical plants in Europe and to safeguard 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 brought in from overseas, often from higher-carbon production abroad.”
Colin Pritchard, head of sustainability for the company's Olefins & Polymers division, indicated the new funding would be used to enhance energy efficiency, cut 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 surging energy costs and the UK's carbon taxes.
Records show 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 leave the EU.
