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Prior to the recent £50m government bailout for its Scottish plant, industrial firms controlled by tycoon Jim Ratcliffe were already awarded as much as £70m in British government support during the previous four-year period.

Recent Disclosures and Financial Support

Based on government disclosures released 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 between £28m and £70m.

The government stepped in this week to grant Ineos with £50m to support its Scottish ethylene plant, fearing that without it the UK would lose its sole facility manufacturing ethylene—a vital feedstock for plastics. Officials additionally supported a £75m loan guarantee, while Ineos pledged to invest £30m of its private capital.

Plant Closure and Wider Challenges

This support arrives following Ineos closed the adjacent oil refinery in late 2024, resulting in the loss of 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 assistance in October. The request coincides with the wide-ranging Ineos group, controlled by the 73-year-old, has been under considerable economic strain, partly due to sharply increased energy costs following Russia's full-scale invasion of Ukraine.

In a sign of growing unease over its ability to manage debt, 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 the turnaround of Manchester United, in which he holds a minority stake.

Form of Support and Company Statements

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

An Ineos representative said the aid did not constitute “special treatment” for the company, but was “awarded against strict criteria, and open to any UK business that meets the requirements.”

Although Ratcliffe thanked the government for the £50m support in an announcement, Ineos also released more critical comments. In these, the billionaire 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 alarming rate.”

Speaking elsewhere, Ratcliffe described carbon taxes as “an extremely foolish levy in the world,” arguing they put UK plants at a competitive disadvantage against foreign rivals. It is noted that most chemicals and plastics are excluded from the UK's planned carbon import tax.

Investment and Sustainability Claims

The Ineos representative 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 safeguard skilled jobs. The UK chemicals sector has had a brutal year, yet everyone relies on this industry every day. Should we fail to manufacture these essential materials in the UK, they are imported instead, often from more polluting operations 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, cut carbon emissions, and boost overall performance.

He noted the site, which uses an ethylene cracker 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.

It has also been reported that Ineos has previously received significant tax breaks from the EU, valued at hundreds of millions of euros—notably while Ratcliffe was a leading supporter of the campaign for the UK to leave the EU.