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Before this week's £50m state rescue package for its Scottish plant, chemical companies under the ownership of tycoon Jim Ratcliffe had already been granted as much as £70m in British government support during the previous four-year period.

Recent Revelations and Bailout Package

According to official data released this week, public funding to Ratcliffe's chemical empire in the most recent year was between £16m and £38m. From August 2022 onwards, the conglomerate has obtained between £28m and £70m.

Authorities intervened this week to provide Ineos with £50m to support its Scottish ethylene plant, concerned that otherwise the UK would cease to have its last remaining facility producing ethylene—a critical raw material for plastics. The government also backed a £75m loan guarantee, while Ineos pledged to invest £30m of its private capital.

Plant Closure and Wider Challenges

This support arrives after Ineos shut down the adjacent oil refinery in September 2024, costing 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 asked for government assistance in October. This appeal coincides with the wide-ranging Ineos group, controlled by the 73-year-old, has faced significant financial pressure, in part due to soaring energy costs following Russia's 2022 invasion of Ukraine.

In a sign of increasing concern over its ability to manage debt, the credit rating agency downgraded Ineos's debt rating in September. Ratcliffe has also had to commit significant funds into his off-road vehicle venture and the turnaround of Manchester United, in which he holds a minority stake.

Nature of Aid and Company Statements

The majority of the earlier government support was delivered in the form of tax breaks in exchange for “commitments to curb consumption and carbon dioxide emissions.” Figures for these tax breaks for Ineos's plants in Grangemouth and Hull were given as estimates 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 thanked the government for the £50m support in an official statement, Ineos separately issued sharper remarks. In these, the industrialist strongly criticised government policy, specifically carbon taxes levied on industrial users.

“The answer is NOT decarbonisation by deindustrialisation,” Ratcliffe wrote. “Without a strong manufacturing base, the economy will continue to decline. Soaring power prices and punitive carbon charges are driving industry out of the UK at an unsustainable pace.”

Speaking elsewhere, Ratcliffe described carbon taxes as “an extremely foolish levy in the world,” arguing they put UK plants at a disadvantage against international competitors. Currently, most chemicals and plastics are excluded from the UK's initial carbon border adjustment mechanism.

Investment and 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 efficient chemical plants in Europe and to protect skilled jobs. British industry has had a very difficult year, yet everyone relies on this industry every day. If we don't produce these essential materials in the UK, they are imported instead, often from higher-carbon production abroad.”

Colin Pritchard, head of sustainability for the company's chemicals unit, indicated the new funding would be used to improve energy efficiency, cut carbon emissions, and boost overall performance.

He explained the site, which uses an processing unit running on 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 significant tax breaks from the EU, valued at hundreds of millions of euros—interestingly while Ratcliffe was a prominent backer of the campaign for the UK to leave the EU.