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Before the recent £50m government bailout for its Scottish plant, chemical companies under the ownership of tycoon Sir Jim Ratcliffe had already been granted up to £70m in British government support over the past four years.

Recent Disclosures and Bailout Package

According to official data published recently, state aid to Ratcliffe's chemical empire in the most recent year was between £16m and £38m. Since August 2022, the company has received a total of £28m and £70m.

Authorities intervened on Tuesday to provide Ineos with £50m to prop up its Grangemouth operations, fearing that otherwise the UK would lose its last remaining facility producing ethylene—a critical feedstock for plastics. The government also backed a £75m loan guarantee, while Ineos pledged to invest £30m of its own funds.

Plant Closure and Broader Context

This support arrives following Ineos closed the neighbouring oil refinery in late 2024, resulting in the loss of 400 jobs—a move described as a huge blow to the area and a political problem for the government.

The billionaire, with an estimated net worth of $14.5bn, reportedly requested government assistance in October. The request comes at a time when the wide-ranging Ineos group, controlled by the 73-year-old, has faced considerable economic strain, partly due to sharply increased energy costs following Russia's 2022 invasion of Ukraine.

Reflecting growing unease over its ability to manage debt, the credit rating agency lowered Ineos's debt rating in September. Ratcliffe has also been required to invest substantial resources into his Ineos Grenadier automotive project and the turnaround of the football club, in which he holds a partial ownership.

Nature of Aid and Official Responses

The majority of the earlier government support was delivered in the form of tax breaks in exchange for “voluntary agreements to reduce energy use and CO2 output.” The value of these relief schemes for Ineos's sites in Grangemouth and Hull were given as estimates rather than exact amounts.

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

Although Ratcliffe publicly welcomed the £50m support in an announcement, Ineos also released sharper remarks. In these, the industrialist launched a broadside against government policy, including 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. High energy costs and burdensome carbon levies are driving industry out of the UK at an alarming rate.”

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

Investment and Environmental Pledges

The Ineos representative 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 safeguard 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 brought in from overseas, often from higher-carbon production abroad.”

Colin Pritchard, head of sustainability for the company's Olefins & Polymers division, 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 ethylene cracker utilising North Sea gas and imported liquefied petroleum gas, had been under “extreme pressure” from rocketing 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—interestingly while Ratcliffe was a leading supporter of the campaign for the UK to leave the EU.