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Before the recent £50m state rescue package for its Scottish plant, chemical companies controlled by billionaire Sir Jim Ratcliffe had already been granted up to £70m in British government support during the previous four-year period.

Recent Revelations and Financial Support

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

Authorities intervened on Tuesday to provide Ineos with £50m to support its Grangemouth operations, fearing that without it the UK would cease to have its last remaining facility manufacturing ethylene—a vital raw material for plastics. The government also backed a £75m credit guarantee, while Ineos committed to invest £30m of its own funds.

Refinery Shutdown and Broader Context

This intervention comes after Ineos shut down the adjacent oil refinery in late 2024, costing 400 jobs—a move described as a huge blow to the local community and a political problem for the government.

Ratcliffe, who is worth $14.5bn, reportedly asked for government assistance in October. This appeal comes at a time when the expansive Ineos group, under the control of 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 growing unease over its ability to manage debt, the credit rating agency downgraded Ineos's credit rating in September. Ratcliffe has also been required to invest significant funds into his Ineos Grenadier automotive project and the turnaround of the football club, in which he holds a partial ownership.

Nature of Aid and Company Statements

The majority of the previous state aid came in the form of tax breaks in return for “voluntary agreements to curb consumption and carbon dioxide emissions.” Figures for these relief schemes for Ineos's plants in Grangemouth and Hull were given as estimates rather than exact amounts.

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

Although Ratcliffe thanked the government for the £50m support in an official statement, Ineos separately issued sharper remarks. In these, the industrialist launched a broadside against government policy, including carbon taxes levied on industrial users.

“The solution is not decarbonisation by deindustrialisation,” Ratcliffe wrote. “Without a strong manufacturing base, the economy will continue to decline. High energy costs and punitive carbon charges are driving industry out of the UK at an unsustainable pace.”

In further comments, Ratcliffe labelled carbon taxes as “the most idiotic tax in the world,” arguing they place UK plants at a disadvantage against international competitors. Currently, most chemicals and plastics are excluded 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 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. Should we fail to manufacture these critical products in the UK, they are brought in from overseas, often from more polluting operations abroad.”

Colin Pritchard, head of sustainability for the company's chemicals unit, said the new funding would be used to improve energy efficiency, reduce carbon emissions, and upgrade plant performance.

He explained the site, which uses an processing unit utilising North Sea gas and US-sourced liquefied petroleum gas, had been under “intense strain” from rocketing energy costs and the UK's carbon taxes.

Records show that Ineos has previously received substantial tax breaks from the EU, valued at hundreds of millions of euros—interestingly while Ratcliffe was a leading supporter of the campaign for the UK to leave the EU.