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Prior to the recent £50m government bailout for its Grangemouth facility, industrial firms controlled by tycoon Sir Jim Ratcliffe had already been granted as much as £70m in UK state aid during the previous four-year period.

Recent Disclosures and Financial Support

Based on government disclosures released this week, public funding to the Ineos group in the last year alone was between £16m and £38m. Since August 2022, the company has obtained a total of £28m and £70m.

Authorities intervened this week to grant Ineos with £50m to support its Grangemouth operations, concerned that otherwise the UK would cease to have its last remaining facility producing ethylene—a vital feedstock for plastics. Officials additionally supported a £75m credit guarantee, while Ineos committed to invest £30m of its own funds.

Plant Closure and Broader Context

This support comes after 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 local community and a political problem for the government.

Ratcliffe, who is worth $14.5bn, reportedly requested government assistance in October. The request coincides with the wide-ranging Ineos group, controlled by 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.

Reflecting increasing concern over its ability to manage debt, the credit rating agency downgraded Ineos's credit rating in September. Ratcliffe has also had to commit significant funds 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

The majority of the earlier government support was delivered in the form of tax breaks in exchange for “commitments to curb consumption and carbon dioxide emissions.” The value of these relief schemes for Ineos's sites in Grangemouth and Hull were given as estimates rather than exact amounts.

An Ineos representative said 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 publicly welcomed the £50m support in an announcement, Ineos separately issued more critical comments. In these, the industrialist launched a broadside against government policy, including carbon taxes levied on industrial users.

“The answer is NOT decarbonisation by deindustrialisation,” he stated. “Lacking a robust manufacturing base, the economy will continue to decline. High energy costs and burdensome carbon levies are driving industry out of the UK at an alarming rate.”

Speaking elsewhere, Ratcliffe described carbon taxes as “an extremely foolish levy in the world,” contending they place UK plants at a disadvantage against foreign rivals. Currently, most chemicals and plastics are not covered from the UK's planned carbon border adjustment mechanism.

Future 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 productive chemical plants in Europe and to safeguard 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 brought in from overseas, often from more polluting operations abroad.”

A senior Ineos executive, head of sustainability for the company's Olefins & Polymers division, indicated the new funding would be used to enhance energy efficiency, reduce carbon emissions, and upgrade plant performance.

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

It has also been reported 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.