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Before the recent £50m government bailout for its Scottish plant, chemical companies under the ownership of tycoon Jim Ratcliffe were already awarded up to £70m in British government support during the previous four-year period.

Recent Revelations and Bailout Package

According to government disclosures released recently, state aid to the Ineos group in the last year alone ranged from £16m and £38m. From August 2022 onwards, the company has received a total of £28m and £70m.

The government stepped in this week to provide Ineos with £50m to support its Scottish ethylene plant, fearing that otherwise the UK would cease to have its last remaining facility manufacturing ethylene—a vital 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 adjacent oil refinery in September 2024, costing 400 jobs—a move described as a significant setback to the local community and a challenge for the government.

The billionaire, with an estimated net worth of $14.5bn, is understood to have asked for government assistance in October. This appeal comes at a time when the wide-ranging Ineos group, controlled by the 73-year-old, has been under considerable economic strain, partly due to soaring energy costs in the wake of Russia's full-scale invasion of Ukraine.

Reflecting increasing concern over its ability to manage debt, Fitch Ratings downgraded Ineos's credit 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.

Form of Support and Company Statements

Most the earlier government support came in the form of tax breaks in exchange for “voluntary agreements to reduce energy use and CO2 output.” Figures for these relief schemes for Ineos's plants in Grangemouth and Hull were given as estimates rather than precise figures.

An Ineos representative stated the aid did not constitute “favourable terms” 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 more critical comments. In these, the industrialist launched a broadside against government policy, including carbon taxes levied on industrial users.

“The answer is NOT decarbonisation by deindustrialisation,” he stated. “Without a strong manufacturing base, the economy will falter. High energy costs and punitive carbon charges are pushing 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 competitive disadvantage against international competitors. It is noted that most chemicals and plastics are not covered from the UK's planned carbon import tax.

Future Sustainability Claims

The Ineos spokesperson added: “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 safeguard skilled jobs. British industry has had a very difficult 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.”

Colin Pritchard, head of sustainability for the company's chemicals unit, indicated the Grangemouth money would be used to improve energy efficiency, reduce carbon emissions, and boost overall performance.

He explained the site, which uses an ethylene cracker running on North Sea gas and imported liquefied petroleum gas, had been under “extreme pressure” from surging energy costs and the UK's carbon taxes.

Records show that Ineos has in the past obtained significant tax breaks from the EU, valued at hundreds of millions of euros—interestingly while Ratcliffe was a prominent backer of the campaign for the UK to leave the EU.