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Before this week's £50m state rescue package for its Scottish plant, industrial firms controlled by tycoon Jim Ratcliffe were already awarded as much as £70m in UK state aid over the past four years.

Recent Revelations and Financial Support

According to official data published this week, state aid to the Ineos group in the last year alone was between £16m and £38m. From August 2022 onwards, the conglomerate has received between £28m and £70m.

Authorities intervened this week to grant Ineos with £50m to support its Scottish ethylene plant, concerned that without it the UK would cease to have its last remaining facility manufacturing ethylene—a critical feedstock for plastics. Officials additionally supported a £75m loan guarantee, while Ineos committed to invest £30m of its own funds.

Refinery Shutdown and Broader Context

This support arrives 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.

Ratcliffe, who is worth $14.5bn, is understood to have 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, partly due to sharply increased energy costs in the wake of Russia's full-scale invasion of Ukraine.

In a sign of growing unease over its financial health, the credit rating agency lowered Ineos's credit rating in September. Ratcliffe has also been required to invest significant funds into his off-road vehicle venture and efforts to revitalise Manchester United, in which he holds a minority stake.

Form of Support and Company Statements

The majority of the earlier government support was delivered in the form of tax breaks in return for “commitments to curb consumption and carbon dioxide emissions.” Figures for these tax breaks for Ineos's plants in Grangemouth and Hull were given as estimates rather than precise figures.

An Ineos representative stated the aid did not constitute “special treatment” for the company, but was “granted based on strict criteria, and available to any UK business that qualifies.”

While Ratcliffe publicly welcomed 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. “Lacking a robust manufacturing base, the economy will falter. Soaring power prices and burdensome carbon levies are pushing industry out of the UK at an alarming rate.”

Speaking elsewhere, Ratcliffe described carbon taxes as “the most idiotic tax in the world,” contending they put UK plants at a competitive disadvantage against foreign rivals. Currently, most chemicals and plastics are not covered from the UK's initial carbon border adjustment mechanism.

Future 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 protect skilled jobs. The UK chemicals sector has had a brutal year, yet everyone relies on this industry every day. Should we fail to manufacture these critical products 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 Olefins & Polymers division, indicated the Grangemouth money would be used to improve energy efficiency, reduce carbon emissions, and boost plant performance.

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

It has also been reported that Ineos has previously received significant tax breaks from the EU, valued at hundreds of millions of euros—interestingly while Ratcliffe was a leading supporter of the campaign for the UK to exit the European Union.