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Prior to the recent £50m state rescue package for its Grangemouth facility, industrial firms controlled by tycoon Sir Jim Ratcliffe were already awarded up to £70m in British government support during the previous four-year period.

Latest Disclosures and Bailout Package

Based on official data released this week, public funding to the Ineos group in the last year alone ranged from £16m and £38m. Since August 2022, the company has obtained a total of £28m and £70m.

Authorities intervened on Tuesday to grant Ineos with £50m to support its Grangemouth operations, concerned that otherwise the UK would cease to have its last remaining facility producing ethylene—a vital feedstock for plastics. Officials additionally supported a £75m loan guarantee, while Ineos pledged to invest £30m of its own funds.

Plant Closure and Broader Context

This support comes after Ineos closed the neighbouring oil refinery in September 2024, costing 400 jobs—a move described as a huge blow to the local community and a political problem for the government.

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

In a sign of increasing concern over its ability to manage debt, the credit rating agency downgraded Ineos's credit rating in September. Ratcliffe has also been required to invest substantial resources 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

Most the earlier government support came in the form of tax relief in exchange for “commitments to reduce energy use and CO2 output.” Figures for these tax breaks for Ineos's sites in Grangemouth and Hull are reported as ranges rather than precise figures.

An Ineos spokesperson said the aid did not represent “favourable terms” for the company, but was “awarded against strict criteria, and available to any UK business that meets the requirements.”

Although Ratcliffe thanked the government for the £50m support in an announcement, Ineos separately issued more critical comments. In these, the billionaire strongly criticised 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 falter. High energy costs 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,” contending they place UK plants at a disadvantage against international competitors. It is noted that most chemicals and plastics are excluded 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 maintain its status as one of the most efficient chemical plants in Europe and to protect 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 brought in from overseas, often from higher-carbon production abroad.”

A senior Ineos executive, 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 plant 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.

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.