The UK government has granted £120m in funding to billionaire Jim Ratcliffe’s Ineos to save the country’s last ethylene plant at Grangemouth, safeguarding over 500 jobs. The investment, announced by Chancellor Rachel Reeves and Business Secretary Peter Kyle, includes an additional £30m from Ineos. The government argued the plant is vital for medical-grade plastics, water treatment, aerospace, and automotive industries.
Prime Minister Keir Starmer said the deal proves his government will “invest in Britain’s future,” emphasising good jobs and stronger communities. However, critics question the broader industrial strategy, especially after the government refused to support ExxonMobil’s ethylene plant in Fife, which is closing next February with 429 job losses. The Department for Business and Trade noted that about 40% of Europe’s ethylene production capacity has shut down or is at risk.
The rescue comes amid political pressure ahead of Scottish parliament elections in May, where Labour trails the SNP and is neck and neck with Reform UK. Both UK and Scottish governments faced criticism for failing to act quickly after Ineos closed its Grangemouth oil refinery earlier this year, co-owned with PetroChina, costing hundreds of jobs.
Separately, Ineos plans hundreds of job cuts globally, including 60 at its Hull chemicals site, blaming high energy costs and cheap Chinese imports. The company has accused Europe of “industrial suicide” through green policies. Meanwhile, nearly £10m in joint UK-Scottish funding was announced last week for low-carbon green chemicals factories at Grangemouth, expected to create up to 310 jobs by 2030.
