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Prior to this week's £50m government bailout for its Scottish plant, industrial firms controlled by billionaire Jim Ratcliffe were already awarded as much as £70m in British government support during the previous four-year period.

Recent Disclosures and Financial Support

Based on official data published recently, public funding to Ratcliffe's chemical empire in the most recent year was between £16m and £38m. Since August 2022, the company has received between £28m and £70m.

The government stepped in this week to grant Ineos with £50m to support its Grangemouth operations, concerned that without it the UK would lose its sole facility producing ethylene—a vital raw material for plastics. The government also backed a £75m loan guarantee, while Ineos pledged to invest £30m of its private capital.

Refinery Shutdown and Broader Context

This intervention arrives following Ineos shut down the adjacent oil refinery in September 2024, resulting in the loss of 400 jobs—a move described as a huge blow to the area and a challenge for the government.

The billionaire, with an estimated net worth of $14.5bn, reportedly requested government assistance in October. This appeal coincides with the wide-ranging Ineos group, controlled by the 73-year-old, has been under considerable economic strain, partly due to soaring energy costs following Russia's 2022 invasion of Ukraine.

In a sign of increasing concern over its financial health, the credit rating agency lowered Ineos's debt rating in September. Ratcliffe has also been required to invest significant funds into his Ineos Grenadier automotive project and efforts to revitalise Manchester United, in which he holds a partial ownership.

Nature of Aid and Official Responses

The majority of the previous state aid was delivered in the form of tax breaks in exchange for “voluntary agreements to curb consumption and carbon dioxide emissions.” Figures for these tax breaks for Ineos's plants in Grangemouth and Hull are reported as ranges rather than exact amounts.

An Ineos representative stated the aid did not represent “favourable terms” for the company, but was “granted based on strict criteria, and open to any UK business that meets the requirements.”

While Ratcliffe publicly welcomed the £50m support in an announcement, Ineos separately issued sharper remarks. 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. “Lacking a robust manufacturing base, the economy will continue to decline. High energy costs and punitive carbon charges are pushing industry out of the UK at an alarming rate.”

In further comments, Ratcliffe described carbon taxes as “the most idiotic tax 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 initial carbon border adjustment mechanism.

Future Sustainability Claims

The Ineos spokesperson added: “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. British industry has had a very difficult year, yet society depends on this industry every day. Should we fail to manufacture these critical products in the UK, they are imported instead, often from higher-carbon production abroad.”

A senior Ineos executive, head of sustainability for the company's chemicals unit, indicated the Grangemouth money would be used to enhance energy efficiency, reduce carbon emissions, and boost plant performance.

He explained the site, which uses an ethylene cracker utilising North Sea gas and imported liquefied petroleum gas, had been under “intense strain” from surging energy costs and the UK's carbon taxes.

It has also been reported that Ineos has previously received significant 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 leave the EU.