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Before this week's £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 UK state aid over the past four years.

Recent Disclosures and Bailout Package

According to government disclosures released recently, state aid to Ratcliffe's chemical empire in the most recent year was between £16m and £38m. From August 2022 onwards, the conglomerate has obtained a total of £28m and £70m.

Authorities intervened on Tuesday to provide Ineos with £50m to support its Grangemouth operations, concerned that otherwise the UK would lose its last remaining facility manufacturing ethylene—a vital raw material for plastics. The government also backed a £75m credit guarantee, while Ineos committed to invest £30m of its private capital.

Plant Closure and Broader Context

This intervention arrives following Ineos closed the neighbouring oil refinery in September 2024, costing 400 jobs—a move described as a significant setback to the local community and a challenge for the government.

The billionaire, with an estimated net worth of $14.5bn, reportedly requested government help in October. The request comes at a time when the expansive Ineos group, controlled by the 73-year-old, has been under significant financial pressure, partly due to soaring energy costs following Russia's full-scale invasion of Ukraine.

In a sign of growing unease over its ability to manage debt, 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 the turnaround of the football club, in which he holds a partial ownership.

Form of Support and Company Statements

The majority of the earlier government support came in the form of tax breaks in return for “voluntary agreements to reduce energy use and carbon dioxide emissions.” The value of these tax breaks for Ineos's sites in Grangemouth and Hull are reported as ranges rather than exact amounts.

An Ineos spokesperson stated the aid did not constitute “favourable terms” for the company, but was “awarded against strict criteria, and available to any UK business that meets the requirements.”

While Ratcliffe thanked the government for the £50m support in an official statement, Ineos also released sharper remarks. In these, the industrialist strongly criticised government policy, including carbon taxes levied on industrial users.

“The solution is not decarbonisation by deindustrialisation,” he stated. “Without a strong manufacturing base, the economy will continue to decline. 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 “an extremely foolish levy in the world,” arguing they put UK plants at a disadvantage against foreign rivals. Currently, most chemicals and plastics are excluded from the UK's initial carbon border adjustment mechanism.

Future 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 efficient 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 brought in from overseas, often from higher-carbon production abroad.”

A senior Ineos executive, head of sustainability for the company's Olefins & Polymers division, indicated the new funding would be used to improve energy efficiency, cut carbon emissions, and boost plant performance.

He noted the site, which uses an processing unit running on North Sea gas and imported liquefied petroleum gas, had been under “intense strain” from surging energy costs and the UK's carbon taxes.

Records show that Ineos has previously received substantial tax breaks from the EU, worth hundreds of millions of euros—notably while Ratcliffe was a leading supporter of the campaign for the UK to exit the European Union.