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Prior to this week's £50m government bailout for its Scottish plant, chemical companies controlled by billionaire Sir Jim Ratcliffe were already awarded as much as £70m in British government support over the past four years.

Recent Revelations 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 conglomerate has received between £28m and £70m.

The government stepped in this week to grant Ineos with £50m to support its Grangemouth operations, concerned that otherwise the UK would cease to have its sole facility manufacturing ethylene—a vital raw material for plastics. The government also backed a £75m loan guarantee, while Ineos pledged to invest £30m of its own funds.

Refinery Shutdown and Wider Challenges

This support arrives after Ineos closed the neighbouring 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, reportedly requested government help in October. The request coincides with the wide-ranging Ineos group, under the control of the 73-year-old, has been under significant financial pressure, in part due to soaring energy costs in the wake of Russia's 2022 invasion of Ukraine.

Reflecting growing unease over its ability to manage debt, the credit rating agency lowered Ineos's credit rating in September. Ratcliffe has also been required to invest substantial resources into his Ineos Grenadier automotive project and efforts to revitalise 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 breaks in return for “commitments to curb consumption and CO2 output.” Figures for these relief schemes for Ineos's plants in Grangemouth and Hull were given as estimates rather than exact amounts.

An Ineos spokesperson said the aid did not constitute “special treatment” for the company, but was “granted based on 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 sharper remarks. In these, the industrialist launched a broadside against government policy, including carbon taxes paid by industrial users.

“The answer is NOT decarbonisation by deindustrialisation,” Ratcliffe wrote. “Without a strong manufacturing base, the economy will continue to decline. Soaring power prices and burdensome carbon levies are driving industry out of the UK at an unsustainable pace.”

Speaking elsewhere, Ratcliffe labelled carbon taxes as “an extremely foolish levy in the world,” arguing they place UK plants at a competitive disadvantage against foreign rivals. Currently, most chemicals and plastics are not covered from the UK's initial carbon import tax.

Investment and Sustainability Claims

The Ineos spokesperson 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 protect skilled jobs. The UK chemicals sector 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.”

A senior Ineos executive, head of sustainability for the company's chemicals unit, indicated the Grangemouth money would be used to enhance energy efficiency, cut carbon emissions, and boost overall performance.

He noted 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.

It has also been reported that Ineos has previously received substantial tax breaks from the EU, worth hundreds of millions of euros—interestingly while Ratcliffe was a prominent backer of the campaign for the UK to leave the EU.