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Before the recent £50m state rescue package for its Scottish plant, chemical companies under the ownership of tycoon Sir Jim Ratcliffe were already awarded up to £70m in UK state aid over the past four years.

Recent Revelations and Financial Support

According to official data published this week, public funding to the Ineos group in the last year alone was between £16m and £38m. From August 2022 onwards, the company has obtained a total of £28m and £70m.

The government stepped in on Tuesday to provide Ineos with £50m to support its Grangemouth operations, concerned that otherwise the UK would lose its sole facility producing ethylene—a vital raw material for plastics. Officials additionally supported a £75m loan guarantee, while Ineos committed to invest £30m of its own funds.

Refinery Shutdown and Broader Context

This intervention comes after Ineos shut down the adjacent oil refinery in September 2024, costing 400 jobs—a move described as a huge blow to the area and a challenge for the government.

The billionaire, with an estimated net worth of $14.5bn, reportedly requested government help in October. This appeal coincides with the expansive Ineos group, controlled by the 73-year-old, has been under significant financial pressure, in part due to soaring energy costs following 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 the turnaround of Manchester United, in which he holds a partial ownership.

Nature of Aid and Company Statements

The majority of the earlier government support came in the form of tax relief in return for “commitments to curb consumption and carbon dioxide emissions.” Figures for these relief schemes for Ineos's plants in Grangemouth and Hull were given as estimates rather than precise figures.

An Ineos representative said 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 also released more critical comments. In these, the billionaire launched a broadside against government policy, including carbon taxes levied on 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 punitive carbon charges are driving industry out of the UK at an alarming rate.”

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

Future Sustainability Claims

The Ineos spokesperson 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 safeguard skilled jobs. The UK chemicals sector 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 more polluting operations abroad.”

A senior Ineos executive, head of sustainability for the company's Olefins & Polymers division, said the new funding would be used to improve energy efficiency, reduce carbon emissions, and upgrade plant performance.

He explained the site, which uses an ethylene cracker utilising 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 in the past obtained significant tax breaks from the EU, worth hundreds of millions of euros—interestingly while Ratcliffe was a leading supporter of the campaign for the UK to exit the European Union.