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Before the recent £50m government bailout for its Scottish plant, industrial firms under the ownership of tycoon Sir Jim Ratcliffe had already been granted as much as £70m in UK state aid over the past four years.

Recent Disclosures and Bailout Package

According to official data published recently, public funding to Ratcliffe's chemical empire in the most recent year ranged from £16m and £38m. Since August 2022, the conglomerate has obtained between £28m and £70m.

Authorities intervened on Tuesday to grant Ineos with £50m to prop up its Grangemouth operations, concerned that otherwise the UK would cease to have its last remaining facility producing ethylene—a critical feedstock for plastics. The government also backed a £75m credit guarantee, while Ineos committed to invest £30m of its private capital.

Refinery Shutdown and Wider Challenges

This support arrives following Ineos shut down the neighbouring oil refinery in September 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 help in October. This appeal coincides with the expansive Ineos group, controlled by the 73-year-old, has faced significant financial pressure, in part 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 ability to manage debt, Fitch Ratings downgraded Ineos's debt rating in September. Ratcliffe has also had to commit substantial resources into his off-road vehicle venture and the turnaround of Manchester United, in which he holds a partial ownership.

Nature of Aid and Official Responses

Most the earlier government support was delivered in the form of tax breaks in return for “commitments to reduce energy use and CO2 output.” The value of these tax breaks for Ineos's plants in Grangemouth and Hull are reported as ranges rather than precise figures.

An Ineos representative said 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 publicly welcomed the £50m support in an official statement, Ineos separately issued more critical comments. In these, the billionaire strongly criticised 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 falter. High energy costs and burdensome carbon levies are driving industry out of the UK at an unsustainable pace.”

In further comments, Ratcliffe described carbon taxes as “the most idiotic tax in the world,” arguing they place UK plants at a competitive disadvantage against international competitors. Currently, most chemicals and plastics are not covered from the UK's planned carbon border adjustment mechanism.

Investment and Environmental Pledges

The Ineos spokesperson further stated: “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 society depends on this industry every day. Should we fail to manufacture 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 Olefins & Polymers division, indicated the Grangemouth money would be used to enhance energy efficiency, cut carbon emissions, and upgrade plant performance.

He explained the site, which uses an ethylene cracker running on 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 in the past obtained substantial tax breaks from the EU, valued at hundreds of millions of euros—notably while Ratcliffe was a leading supporter of the campaign for the UK to exit the European Union.