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Before this week's £50m government bailout for its Scottish plant, chemical companies controlled by tycoon Jim Ratcliffe were already awarded up to £70m in UK state aid over the past four years.

Latest Revelations and Bailout Package

According to government disclosures released this week, state aid to Ratcliffe's chemical empire in the last year alone ranged from £16m and £38m. From August 2022 onwards, the company has obtained a total of £28m and £70m.

Authorities intervened on Tuesday to grant Ineos with £50m to prop up its Grangemouth operations, fearing that without it the UK would lose its last remaining facility manufacturing ethylene—a critical raw material for plastics. The government also backed a £75m credit guarantee, while Ineos pledged to invest £30m of its private capital.

Plant Closure and Broader Context

This support arrives after Ineos closed the neighbouring oil refinery in September 2024, costing 400 jobs—a move described as a significant setback to the area and a challenge for the government.

The billionaire, with an estimated net worth of $14.5bn, is understood to have asked for government help in October. The request coincides with the expansive Ineos group, under the control of the 73-year-old, has been under considerable economic strain, in part due to sharply increased energy costs following Russia's full-scale invasion of Ukraine.

Reflecting increasing concern over its financial health, 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 efforts to revitalise the football club, in which he holds a minority stake.

Form of Support and Company Statements

The majority of the previous state aid was delivered in the form of tax relief in return for “voluntary agreements to curb consumption and CO2 output.” The value of these relief schemes for Ineos's plants in Grangemouth and Hull were given as estimates rather than exact amounts.

An Ineos spokesperson stated the aid did not constitute “favourable terms” for the company, but was “awarded against strict criteria, and open to any UK business that qualifies.”

Although Ratcliffe publicly welcomed the £50m support in an official statement, Ineos separately issued sharper remarks. In these, the industrialist strongly criticised government policy, specifically carbon taxes levied on industrial users.

“The answer is NOT decarbonisation by deindustrialisation,” Ratcliffe wrote. “Lacking a robust manufacturing base, the economy will falter. High energy costs and punitive carbon charges are pushing industry out of the UK at an unsustainable pace.”

Speaking elsewhere, Ratcliffe described carbon taxes as “an extremely foolish levy in the world,” arguing they place UK plants at a competitive disadvantage against foreign rivals. It is noted that most chemicals and plastics are not covered from the UK's initial carbon border adjustment mechanism.

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 productive chemical plants in Europe and to safeguard skilled jobs. British industry has had a brutal year, yet society depends on this industry every day. If we don't produce these essential materials in the UK, they are brought in from overseas, often from more polluting operations abroad.”

Colin Pritchard, head of sustainability for the company's chemicals unit, said the new funding would be used to improve energy efficiency, reduce carbon emissions, and boost overall performance.

He explained the site, which uses an ethylene cracker running on North Sea gas and imported liquefied petroleum gas, had been under “extreme pressure” from surging energy costs and the UK's carbon taxes.

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