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Before this week's £50m government bailout for its Grangemouth facility, chemical companies under the ownership of billionaire Sir Jim Ratcliffe were already awarded up to £70m in UK state aid during the previous four-year period.

Recent Revelations and Financial Support

Based on official data released recently, 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 on Tuesday to grant Ineos with £50m to support its Grangemouth operations, concerned that without it the UK would cease to have its last remaining facility producing ethylene—a vital raw material for plastics. Officials additionally supported a £75m loan guarantee, while Ineos committed to invest £30m of its private capital.

Plant Closure and Wider Challenges

This support arrives following Ineos shut down the neighbouring 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 asked for government assistance in October. This appeal coincides with the expansive Ineos group, controlled by the 73-year-old, has been under considerable economic strain, in part due to soaring energy costs in the wake of Russia's 2022 invasion of Ukraine.

In a sign of increasing concern over its financial health, Fitch Ratings downgraded Ineos's credit rating in September. Ratcliffe has also had to commit significant funds into his Ineos Grenadier automotive project and the turnaround of Manchester United, in which he holds a minority stake.

Form of Support and Official Responses

Most the previous state aid came in the form of tax relief in return for “commitments 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 precise figures.

An Ineos spokesperson stated the aid did not represent “favourable terms” for the company, but was “granted based on strict criteria, and available to any UK business that qualifies.”

While 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 levied on industrial users.

“The solution is not decarbonisation by deindustrialisation,” Ratcliffe wrote. “Without a strong manufacturing base, the economy will falter. Soaring power prices and burdensome carbon levies 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 competitive disadvantage against international competitors. It is noted that most chemicals and plastics are not covered from the UK's initial 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 efficient chemical plants in Europe and to safeguard 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 higher-carbon production abroad.”

Colin Pritchard, head of sustainability for the company's Olefins & Polymers division, indicated the Grangemouth money would be used to improve energy efficiency, reduce carbon emissions, and upgrade overall performance.

He noted the site, which uses an processing unit utilising North Sea gas and US-sourced 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 substantial tax breaks from the EU, worth hundreds of millions of euros—notably while Ratcliffe was a prominent backer of the campaign for the UK to leave the EU.