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

Recent Revelations and Bailout Package

Based on government disclosures published this week, state aid to the Ineos group in the last year alone ranged from £16m and £38m. Since August 2022, the conglomerate has received a total of £28m and £70m.

The government stepped in on Tuesday to provide Ineos with £50m to support its Scottish ethylene plant, concerned that without it the UK would lose its last remaining facility manufacturing ethylene—a vital raw material for plastics. Officials additionally supported a £75m loan guarantee, while Ineos pledged to invest £30m of its private capital.

Refinery Shutdown and Broader Context

This intervention comes following Ineos shut down the neighbouring oil refinery in late 2024, costing 400 jobs—a move described as a significant setback to the area and a challenge for the government.

Ratcliffe, who is worth $14.5bn, is understood to have requested government help in October. This appeal comes at a time when the expansive Ineos group, under the control of the 73-year-old, has faced considerable economic strain, in part due to soaring energy costs in the wake of Russia's 2022 invasion of Ukraine.

In a sign of growing unease over its ability to manage debt, the credit rating agency lowered Ineos's credit rating in September. Ratcliffe has also had to commit 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

The majority of the earlier government support came in the form of tax relief in return for “voluntary agreements to reduce energy use and carbon dioxide emissions.” Figures for these relief schemes for Ineos's sites in Grangemouth and Hull were given as estimates rather than exact amounts.

An Ineos representative stated the aid did not represent “special treatment” for the company, but was “granted based on strict criteria, and available to any UK business that meets the requirements.”

While Ratcliffe publicly welcomed the £50m support in an official statement, Ineos separately issued more critical comments. In these, the billionaire launched a broadside against government policy, specifically carbon taxes levied on industrial users.

“The answer is NOT decarbonisation by deindustrialisation,” Ratcliffe wrote. “Without a strong manufacturing base, the economy will falter. High energy costs and burdensome carbon levies are driving industry out of the UK at an unsustainable pace.”

Speaking elsewhere, Ratcliffe labelled carbon taxes as “the most idiotic tax in the world,” arguing they place UK plants at a disadvantage against international competitors. Currently, most chemicals and plastics are excluded from the UK's planned carbon import tax.

Investment and Environmental Pledges

The Ineos representative added: “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. The UK chemicals sector has had a very difficult year, yet everyone relies on this industry every day. If we don't produce these critical products 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 Olefins & Polymers division, said the Grangemouth money would be used to improve energy efficiency, cut carbon emissions, and boost plant performance.

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

Records show that Ineos has previously received substantial tax breaks from the EU, worth hundreds of millions of euros—interestingly while Ratcliffe was a prominent backer of the campaign for the UK to leave the EU.