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Prior to this week's £50m government bailout for its Grangemouth facility, industrial firms controlled by tycoon Jim Ratcliffe were already awarded up to £70m in UK state aid during the previous four-year period.

Recent Disclosures and Bailout Package

Based on government disclosures 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 a total of £28m and £70m.

Authorities intervened this week to provide Ineos with £50m to prop up its Grangemouth operations, concerned that otherwise the UK would cease to have its last remaining facility producing ethylene—a vital raw material for plastics. The government also backed a £75m credit guarantee, while Ineos committed to invest £30m of its private capital.

Refinery Shutdown and Wider Challenges

This intervention comes following Ineos closed the neighbouring oil refinery in late 2024, resulting in the loss of 400 jobs—a move described as a huge blow to the local community 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 comes at a time when the expansive Ineos group, controlled by the 73-year-old, has faced considerable economic strain, partly due to sharply increased energy costs in the wake of Russia's full-scale 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 Manchester United, in which he holds a partial ownership.

Nature of Aid and Company Statements

The majority of the previous state aid 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 plants in Grangemouth and Hull were given as estimates rather than exact amounts.

An Ineos spokesperson said the aid did not constitute “favourable terms” for the company, but was “granted based on strict criteria, and open to any UK business that meets the requirements.”

Although Ratcliffe publicly welcomed the £50m support in an official statement, Ineos also released sharper remarks. In these, the industrialist launched a broadside against government policy, specifically carbon taxes paid by 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 driving industry out of the UK at an unsustainable pace.”

In further comments, Ratcliffe labelled carbon taxes as “the most idiotic tax in the world,” contending they place UK plants at a competitive disadvantage against international competitors. Currently, most chemicals and plastics are excluded from the UK's initial carbon import tax.

Future 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 productive chemical plants in Europe and to protect skilled jobs. British industry 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 higher-carbon production abroad.”

A senior Ineos executive, head of sustainability for the company's chemicals unit, said the Grangemouth money would be used to improve energy efficiency, reduce carbon emissions, and boost plant performance.

He noted the site, which uses an processing unit running on North Sea gas and imported liquefied petroleum gas, had been under “intense strain” from rocketing energy costs and the UK's carbon taxes.

Records show that Ineos has in the past obtained substantial 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 exit the European Union.