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Before this week's £50m state rescue package for its Scottish plant, industrial firms controlled by billionaire Sir Jim Ratcliffe had already been granted up to £70m in British government support over the past four years.

Recent Disclosures and Bailout Package

Based on official data released this week, state aid to Ratcliffe's chemical empire in the last year alone was between £16m and £38m. Since August 2022, the conglomerate has obtained 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 sole facility producing ethylene—a critical feedstock for plastics. The government also backed a £75m credit guarantee, while Ineos committed to invest £30m of its own funds.

Refinery Shutdown and Broader Context

This intervention comes 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 local community and a political problem for the government.

The billionaire, with an estimated net worth of $14.5bn, reportedly requested government help in October. This appeal comes at a time when the wide-ranging Ineos group, under the control of the 73-year-old, has faced significant financial pressure, 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, Fitch Ratings downgraded Ineos's debt 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 partial ownership.

Form of Support and Company Statements

The majority of the previous state aid came in the form of tax relief in exchange for “commitments to curb consumption and CO2 output.” Figures for these tax breaks for Ineos's plants in Grangemouth and Hull were given as estimates rather than exact amounts.

An Ineos representative said the aid did not constitute “favourable terms” for the company, but was “awarded against strict criteria, and open to any UK business that qualifies.”

While Ratcliffe thanked the government for the £50m support in an announcement, Ineos separately issued more critical comments. In these, the industrialist launched a broadside against government policy, specifically carbon taxes paid by industrial users.

“The answer is NOT decarbonisation by deindustrialisation,” he stated. “Without a strong manufacturing base, the economy will falter. High energy costs and punitive carbon charges 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 put UK plants at a competitive disadvantage against foreign rivals. Currently, most chemicals and plastics are excluded from the UK's planned carbon import tax.

Future Sustainability Claims

The Ineos representative added: “Ineos has invested over £400m at Grangemouth in the last five years to keep it as one of the most productive chemical plants in Europe and to protect skilled jobs. The UK chemicals sector has had a very difficult year, yet everyone relies on this industry every day. Should we fail to manufacture these essential materials in the UK, they are imported instead, often from more polluting operations 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, reduce carbon emissions, and boost plant performance.

He explained the site, which uses an processing unit utilising North Sea gas and imported liquefied petroleum gas, had been under “extreme pressure” from surging 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 exit the European Union.