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Prior to this week's £50m government bailout for its Scottish plant, industrial firms under the ownership of tycoon Sir Jim Ratcliffe were already awarded up to £70m in UK state aid during the previous four-year period.

Latest Disclosures and Bailout Package

Based on official data published recently, state aid 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.

The government stepped in on Tuesday to grant Ineos with £50m to prop up its Grangemouth operations, concerned that otherwise the UK would cease to have its last remaining facility producing ethylene—a vital raw material for plastics. Officials additionally supported a £75m loan guarantee, while Ineos committed to invest £30m of its own funds.

Plant Closure and Wider Challenges

This intervention comes following Ineos closed the adjacent oil refinery in late 2024, resulting in the loss of 400 jobs—a move described as a significant setback to the area and a challenge for the government.

The billionaire, with an estimated net worth of $14.5bn, is understood to have asked for government help in October. The request coincides with the wide-ranging Ineos group, under the control of the 73-year-old, has been under considerable economic strain, in part due to sharply increased energy costs in the wake of Russia's 2022 invasion of Ukraine.

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

Nature of Aid and Official Responses

Most the previous state aid was delivered in the form of tax breaks in return for “voluntary agreements to curb consumption and CO2 output.” The value of these relief schemes for Ineos's sites in Grangemouth and Hull are reported as ranges rather than exact amounts.

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

While Ratcliffe publicly welcomed the £50m support in an announcement, Ineos separately issued more critical comments. In these, the billionaire strongly criticised government policy, specifically carbon taxes levied on industrial users.

“The solution is not decarbonisation by deindustrialisation,” Ratcliffe wrote. “Without a strong manufacturing base, the economy will falter. High energy costs and burdensome carbon levies 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 put UK plants at a disadvantage against foreign rivals. Currently, most chemicals and plastics are excluded from the UK's initial carbon border adjustment mechanism.

Investment and Environmental Pledges

The Ineos representative added: “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 brutal year, yet society depends on this industry every day. If we don't produce 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 Olefins & Polymers division, said the Grangemouth money would be used to enhance energy efficiency, reduce carbon emissions, and boost overall performance.

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

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