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Prior to the recent £50m state rescue package for its Scottish plant, chemical companies under the ownership of tycoon Jim Ratcliffe were already awarded up to £70m in UK state aid during the previous four-year period.

Recent Disclosures and Financial Support

According to official data published this week, public funding to Ratcliffe's chemical empire in the last year alone ranged from £16m and £38m. Since August 2022, the company has obtained between £28m and £70m.

Authorities intervened on Tuesday to grant Ineos with £50m to support its Scottish ethylene plant, fearing that otherwise the UK would lose its last remaining facility manufacturing ethylene—a vital feedstock for plastics. The government also backed a £75m loan guarantee, while Ineos committed to invest £30m of its private capital.

Refinery Shutdown and Wider Challenges

This support comes after Ineos shut down 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.

The billionaire, with an estimated net worth of $14.5bn, is understood to have requested government help in October. The request comes at a time when the expansive Ineos group, controlled by the 73-year-old, has been under significant financial pressure, partly due to sharply increased energy costs in the wake of Russia's full-scale invasion of Ukraine.

Reflecting growing unease over its financial health, the credit rating agency lowered 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 Manchester United, in which he holds a partial ownership.

Nature of Aid and Official Responses

Most the previous state aid came in the form of tax relief in exchange for “commitments 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 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.”

While Ratcliffe publicly welcomed the £50m support in an announcement, Ineos also released sharper remarks. In these, the industrialist strongly criticised government policy, including carbon taxes levied on industrial users.

“The solution is not decarbonisation by deindustrialisation,” Ratcliffe wrote. “Lacking a robust manufacturing base, the economy will falter. Soaring power prices and punitive carbon charges are pushing industry out of the UK at an unsustainable pace.”

In further comments, Ratcliffe labelled carbon taxes as “the most idiotic tax in the world,” contending they place UK plants at a disadvantage against foreign rivals. It is noted that 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 safeguard skilled jobs. British industry has had a brutal year, yet everyone relies on this industry every day. If we don't produce these critical products in the UK, they are imported instead, often from more polluting operations abroad.”

Colin Pritchard, head of sustainability for the company's chemicals unit, said the Grangemouth money would be used to enhance energy efficiency, reduce carbon emissions, and upgrade overall performance.

He explained the site, which uses an processing unit utilising North Sea gas and imported liquefied petroleum gas, had been under “intense strain” from rocketing energy costs and the UK's carbon taxes.

Records show that Ineos has previously received significant tax breaks from the EU, valued at hundreds of millions of euros—interestingly while Ratcliffe was a prominent backer of the campaign for the UK to exit the European Union.