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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 were already awarded up to £70m in UK state aid over the past four years.

Recent Disclosures and Financial Support

According to government disclosures released recently, public funding to Ratcliffe's chemical empire in the most recent year was between £16m and £38m. Since August 2022, the company has received a total of £28m and £70m.

Authorities intervened this week to grant Ineos with £50m to support its Grangemouth operations, fearing that without it the UK would cease to have its sole facility producing ethylene—a vital 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 comes following Ineos shut down the neighbouring oil refinery in late 2024, resulting in the loss of 400 jobs—a move described as a huge blow to the area and a political problem for the government.

The billionaire, with an estimated net worth of $14.5bn, is understood to have requested government help in October. This appeal coincides with the wide-ranging Ineos group, under the control of the 73-year-old, has faced considerable economic strain, in part due to sharply increased energy costs following Russia's full-scale invasion of Ukraine.

Reflecting growing unease over its ability to manage debt, Fitch Ratings downgraded Ineos's debt rating in September. Ratcliffe has also been required to invest substantial resources into his off-road vehicle venture and efforts to revitalise the football club, in which he holds a minority stake.

Nature of Aid and Official Responses

Most the previous state aid came in the form of tax breaks in return for “commitments to reduce energy use and carbon dioxide emissions.” The value of these tax breaks for Ineos's plants in Grangemouth and Hull were given as estimates rather than precise figures.

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

Although Ratcliffe publicly welcomed the £50m support in an announcement, Ineos separately issued sharper remarks. In these, the billionaire strongly criticised government policy, including carbon taxes paid by industrial users.

“The answer is NOT decarbonisation by deindustrialisation,” Ratcliffe wrote. “Lacking a robust manufacturing base, the economy will continue to decline. High energy costs and punitive carbon charges are pushing industry out of the UK at an unsustainable pace.”

Speaking elsewhere, Ratcliffe described carbon taxes as “the most idiotic tax in the world,” contending they put UK plants at a competitive disadvantage against international competitors. Currently, most chemicals and plastics are not covered from the UK's planned carbon import tax.

Investment and Environmental Pledges

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 society depends on this industry every day. Should we fail to manufacture these critical products in the UK, they are imported instead, often from more polluting operations abroad.”

Colin Pritchard, head of sustainability for the company's chemicals unit, said the Grangemouth money would be used to enhance energy efficiency, cut carbon emissions, and boost overall performance.

He noted the site, which uses an ethylene cracker running on North Sea gas and imported liquefied petroleum gas, had been under “intense strain” from surging 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 prominent backer of the campaign for the UK to leave the EU.