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Prior to this week's £50m state rescue package for its Scottish plant, chemical companies controlled by tycoon Jim Ratcliffe had already been granted up to £70m in UK state aid over the past four years.

Latest Revelations and Financial Support

According to government disclosures published this week, public funding to the Ineos group in the last year alone ranged from £16m and £38m. Since August 2022, the company has received a total of £28m and £70m.

The government stepped in this week to provide Ineos with £50m to prop up its Scottish ethylene plant, fearing that otherwise the UK would lose its sole facility producing ethylene—a critical raw material for plastics. Officials additionally supported a £75m credit guarantee, while Ineos committed to invest £30m of its private capital.

Plant Closure and Broader Context

This intervention comes 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, is understood to have asked for government assistance in October. This appeal comes at a time when the wide-ranging Ineos group, under the control of the 73-year-old, has faced considerable economic strain, partly due to soaring energy costs in the wake of Russia's full-scale invasion of Ukraine.

In a sign of growing unease over its ability to manage debt, Fitch Ratings lowered Ineos's credit rating in September. Ratcliffe has also had to commit significant funds into his off-road vehicle venture and the turnaround of Manchester United, in which he holds a minority stake.

Nature of Aid and Official Responses

The majority of the earlier government support was delivered in the form of tax relief in exchange for “commitments to reduce energy use and carbon dioxide emissions.” The value of these relief schemes for Ineos's plants in Grangemouth and Hull are reported as ranges rather than exact amounts.

An Ineos spokesperson said the aid did not represent “special treatment” for the company, but was “granted based on strict criteria, and open to any UK business that meets the requirements.”

While Ratcliffe thanked the government for the £50m support in an official statement, Ineos separately issued sharper remarks. In these, the billionaire launched a broadside against government policy, specifically carbon taxes paid by industrial users.

“The solution 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 pushing industry out of the UK at an unsustainable pace.”

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

Investment and Sustainability Claims

The Ineos representative further stated: “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 safeguard skilled jobs. The UK chemicals sector has had a very difficult year, yet society depends on this industry every day. If we don't produce these essential materials in the UK, they are imported instead, 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 enhance energy efficiency, cut carbon emissions, and upgrade plant performance.

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

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