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Prior to the recent £50m state rescue package for its Scottish plant, industrial firms under the ownership of tycoon Sir Jim Ratcliffe had already been granted up to £70m in British government support over the past four years.

Recent Revelations and Bailout Package

According to official data released recently, public funding to Ratcliffe's chemical empire in the most recent year ranged from £16m and £38m. From August 2022 onwards, the company has received between £28m and £70m.

The government stepped in this week to provide Ineos with £50m to support its Grangemouth operations, concerned that otherwise the UK would lose its last remaining facility manufacturing ethylene—a critical feedstock for plastics. Officials additionally supported a £75m credit guarantee, while Ineos pledged to invest £30m of its private capital.

Refinery Shutdown and Broader Context

This intervention arrives after Ineos closed the neighbouring oil refinery in September 2024, resulting in the loss of 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 asked for 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, in part due to soaring energy costs in the wake of 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 credit rating in September. Ratcliffe has also had to commit 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 Official Responses

The majority of the earlier government support was delivered in the form of tax relief in exchange for “voluntary agreements to reduce energy use and CO2 output.” The value of these relief schemes for Ineos's plants in Grangemouth and Hull are reported as ranges rather than precise figures.

An Ineos spokesperson said the aid did not constitute “special treatment” 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 also released more critical comments. In these, the billionaire launched a broadside against 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 falter. Soaring power prices and burdensome carbon levies are pushing industry out of the UK at an unsustainable pace.”

Speaking elsewhere, Ratcliffe labelled carbon taxes as “an extremely foolish levy 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 planned carbon border adjustment mechanism.

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 productive 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. If we don't produce these essential materials in the UK, they are imported instead, often from more polluting operations 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 upgrade overall performance.

He explained the site, which uses an ethylene cracker 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 significant tax breaks from the EU, worth hundreds of millions of euros—notably while Ratcliffe was a prominent backer of the campaign for the UK to exit the European Union.