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Before this week's £50m state rescue package for its Scottish plant, chemical companies under the ownership of tycoon Jim Ratcliffe were already awarded as much as £70m in British government support over the past four years.

Recent Revelations and Financial Support

Based on official data published this week, public funding to Ratcliffe's chemical empire in the most recent year ranged from £16m and £38m. Since August 2022, the company has received a total of £28m and £70m.

The government stepped in this week to provide Ineos with £50m to prop up its Scottish ethylene plant, concerned that otherwise the UK would lose its last remaining facility producing ethylene—a vital feedstock for plastics. Officials additionally supported a £75m loan guarantee, while Ineos committed to invest £30m of its own funds.

Refinery Shutdown and Wider Challenges

This support arrives following Ineos closed 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.

Ratcliffe, who is worth $14.5bn, reportedly asked for government assistance in October. The request coincides with the expansive Ineos group, controlled by 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.

In a sign of increasing concern over its ability to manage debt, Fitch Ratings downgraded Ineos's credit rating in September. Ratcliffe has also had to commit significant funds into his off-road vehicle venture and the turnaround of the football club, in which he holds a minority stake.

Form of Support 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 were given as estimates rather than precise figures.

An Ineos spokesperson stated the aid did not represent “special treatment” 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 also released sharper remarks. In these, the billionaire launched a broadside against 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. Soaring power prices and punitive carbon charges are driving industry out of the UK at an unsustainable pace.”

Speaking elsewhere, Ratcliffe described carbon taxes as “the most idiotic tax in the world,” arguing they place UK plants at a disadvantage against international competitors. It is noted that most chemicals and plastics are not covered from the UK's initial carbon border adjustment mechanism.

Future Sustainability Claims

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 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 imported instead, often from higher-carbon production abroad.”

A senior Ineos executive, head of sustainability for the company's Olefins & Polymers division, indicated the Grangemouth money would be used to improve energy efficiency, cut carbon emissions, and upgrade plant performance.

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

Records show that Ineos has previously received 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.