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Before this week's £50m state rescue package for its Grangemouth facility, industrial firms under the ownership of tycoon Jim Ratcliffe had already been granted up to £70m in British government support during the previous four-year period.

Recent Disclosures and Bailout Package

According to government disclosures released this week, state aid to Ratcliffe's chemical empire in the most recent year ranged from £16m and £38m. Since August 2022, the company has obtained between £28m and £70m.

Authorities intervened on Tuesday to grant Ineos with £50m to prop up its Grangemouth operations, fearing that without it the UK would lose its last remaining facility producing ethylene—a critical feedstock for plastics. Officials additionally supported a £75m loan guarantee, while Ineos pledged to invest £30m of its private capital.

Refinery Shutdown and Broader Context

This support arrives following Ineos shut down the adjacent oil refinery in late 2024, costing 400 jobs—a move described as a significant setback 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 wide-ranging Ineos group, under the control of the 73-year-old, has faced significant financial pressure, in part due to soaring energy costs following Russia's full-scale invasion of Ukraine.

Reflecting increasing concern over its financial health, the credit rating agency downgraded Ineos's debt rating in September. Ratcliffe has also been required to invest substantial resources into his Ineos Grenadier automotive project and efforts to revitalise the football club, in which he holds a partial ownership.

Form of Support and Company Statements

Most the earlier government support came in the form of tax breaks in exchange for “commitments to curb consumption and CO2 output.” Figures for these tax breaks for Ineos's plants in Grangemouth and Hull are reported as ranges rather than precise figures.

An Ineos spokesperson stated 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 industrialist strongly criticised government policy, including carbon taxes paid by industrial users.

“The solution is not decarbonisation by deindustrialisation,” he stated. “Without a strong manufacturing base, the economy will continue to decline. Soaring power prices and burdensome carbon levies are driving industry out of the UK at an alarming rate.”

In further comments, Ratcliffe described 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 import tax.

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 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 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 Grangemouth money would be used to enhance energy efficiency, cut carbon emissions, and boost 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 rocketing energy costs and the UK's carbon taxes.

Records show that Ineos has in the past obtained substantial tax breaks from the EU, valued at hundreds of millions of euros—notably while Ratcliffe was a leading supporter of the campaign for the UK to exit the European Union.