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Before this week's £50m government bailout for its Scottish plant, chemical companies under the ownership of billionaire Sir Jim Ratcliffe had already been granted up to £70m in UK state aid during the previous four-year period.

Recent Disclosures and Financial Support

Based on official data released recently, state aid to Ratcliffe's chemical empire in the last year alone ranged from £16m and £38m. From August 2022 onwards, the company has obtained between £28m and £70m.

The government stepped in this week to provide 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 raw material for plastics. Officials additionally supported a £75m loan guarantee, while Ineos committed to invest £30m of its private capital.

Plant Closure and Broader Context

This intervention arrives after Ineos shut down the adjacent oil refinery in late 2024, resulting in the loss of 400 jobs—a move described as a significant setback to the local community and a political problem for the government.

Ratcliffe, who is worth $14.5bn, reportedly asked for government help in October. This appeal coincides with the wide-ranging Ineos group, controlled by the 73-year-old, has been under significant financial pressure, in part due to sharply increased energy costs in the wake of Russia's full-scale invasion of Ukraine.

Reflecting 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 the football club, in which he holds a partial ownership.

Nature of Aid and Company Statements

The majority of the earlier government support was delivered in the form of tax relief in exchange for “commitments to reduce energy use and carbon dioxide emissions.” Figures for these relief schemes 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 launched a broadside against government policy, including carbon taxes levied on industrial users.

“The answer is NOT decarbonisation by deindustrialisation,” Ratcliffe wrote. “Lacking a robust manufacturing base, the economy will continue to decline. Soaring power prices 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 place UK plants at a disadvantage against international competitors. It is noted that most chemicals and plastics are not covered from the UK's initial carbon import tax.

Investment and Sustainability Claims

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 safeguard 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 critical products in the UK, they are imported instead, often from more polluting operations abroad.”

A senior Ineos executive, 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 overall 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 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 prominent backer of the campaign for the UK to exit the European Union.