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Prior to this week's £50m government bailout for its Grangemouth facility, chemical companies under the ownership of tycoon Jim Ratcliffe had already been granted as much as £70m in British government support over the past four years.

Latest Revelations and Financial Support

Based on official data published this week, public funding to the Ineos group in the most recent year ranged from £16m and £38m. Since August 2022, the company has received a total of £28m and £70m.

The government stepped in on Tuesday to provide Ineos with £50m to support its Scottish ethylene plant, concerned that otherwise the UK would lose its sole facility producing ethylene—a vital feedstock for plastics. The government also backed a £75m credit guarantee, while Ineos pledged to invest £30m of its private capital.

Plant Closure and Broader Context

This support arrives following Ineos closed the neighbouring oil refinery in late 2024, costing 400 jobs—a move described as a significant setback 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 comes at a time when the expansive Ineos group, controlled by the 73-year-old, has faced significant financial pressure, partly due to soaring energy costs in the wake of Russia's 2022 invasion of Ukraine.

Reflecting increasing concern over its ability to manage debt, Fitch Ratings downgraded Ineos's debt rating in September. Ratcliffe has also had to commit substantial resources into his Ineos Grenadier automotive project and the turnaround of the football club, in which he holds a partial ownership.

Nature of Aid and Official Responses

The majority of the earlier government support came in the form of tax breaks in return for “commitments to reduce energy use and CO2 output.” Figures for these relief schemes for Ineos's sites in Grangemouth and Hull are reported as ranges rather than precise figures.

An Ineos representative said the aid did not represent “special treatment” for the company, but was “granted based on strict criteria, and open to any UK business that qualifies.”

While Ratcliffe thanked the government for the £50m support in an announcement, Ineos also released more critical comments. In these, the industrialist strongly criticised government policy, including carbon taxes levied on industrial users.

“The solution is not decarbonisation by deindustrialisation,” he stated. “Lacking a robust manufacturing base, the economy will falter. Soaring power prices and burdensome carbon levies are driving industry out of the UK at an alarming rate.”

In further comments, Ratcliffe labelled carbon taxes as “an extremely foolish levy in the world,” contending they put 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 Environmental Pledges

The Ineos spokesperson 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. 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 Olefins & Polymers division, indicated the Grangemouth money would be used to enhance energy efficiency, cut carbon emissions, and upgrade overall performance.

He explained the site, which uses an ethylene cracker running on North Sea gas and US-sourced liquefied petroleum gas, had been under “extreme pressure” 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—interestingly while Ratcliffe was a prominent backer of the campaign for the UK to exit the European Union.