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Before this week's £50m government bailout for its Grangemouth facility, industrial firms under the ownership of billionaire Jim Ratcliffe were already awarded as much as £70m in UK state aid during the previous four-year period.

Latest Revelations and Financial Support

Based on official data released recently, public funding to the Ineos group in the last year alone was between £16m and £38m. Since August 2022, the conglomerate has obtained between £28m and £70m.

The government stepped in on Tuesday to provide Ineos with £50m to prop up its Grangemouth operations, fearing that otherwise the UK would cease to have its last remaining facility producing ethylene—a critical feedstock for plastics. The government also backed a £75m credit guarantee, while Ineos pledged to invest £30m of its private capital.

Plant Closure and Wider Challenges

This support arrives following Ineos shut down the adjacent 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.

Ratcliffe, who is worth $14.5bn, reportedly requested government help in October. The request comes at a time when the wide-ranging Ineos group, under the control of 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.

In a sign of increasing concern over its ability to manage debt, Fitch Ratings 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 the football club, in which he holds a partial ownership.

Form of Support and Official Responses

Most the previous state aid was delivered in the form of tax relief in return for “commitments to curb consumption and carbon dioxide emissions.” The value of these tax breaks for Ineos's sites in Grangemouth and Hull were given as estimates rather than exact amounts.

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

While Ratcliffe publicly welcomed the £50m support in an official statement, Ineos also released more critical comments. In these, the industrialist strongly criticised government policy, specifically 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. High energy costs and burdensome carbon levies are driving industry out of the UK at an alarming rate.”

Speaking elsewhere, Ratcliffe described 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 not covered from the UK's initial carbon import tax.

Investment and Environmental Pledges

The Ineos spokesperson 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 very difficult year, yet everyone relies on this industry every day. Should we fail to manufacture these critical products in the UK, they are imported instead, 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, reduce carbon emissions, and boost overall performance.

He explained the site, which uses an processing unit utilising 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 in the past obtained 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.