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Prior to the recent £50m state rescue package for its Scottish plant, chemical companies under the ownership of billionaire Jim Ratcliffe were already awarded as much as £70m in British government support during the previous four-year period.

Latest Revelations and Bailout Package

Based on official data published this week, public funding to Ratcliffe's chemical empire in the last year alone ranged from £16m and £38m. Since August 2022, the conglomerate has received a total of £28m and £70m.

Authorities intervened on Tuesday to provide Ineos with £50m to prop up its Scottish ethylene plant, concerned that without it the UK would lose 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.

Plant Closure and Broader Context

This intervention arrives following Ineos shut down the neighbouring oil refinery in September 2024, costing 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 comes at a time when the wide-ranging Ineos group, under the control of the 73-year-old, has been under considerable economic strain, partly due to soaring energy costs in the wake of Russia's 2022 invasion of Ukraine.

In a sign of increasing concern over its ability to manage debt, 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 the turnaround of 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 relief in return for “commitments to reduce energy use and carbon dioxide emissions.” The value of 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 constitute “special treatment” for the company, but was “awarded against strict criteria, and open to any UK business that qualifies.”

While Ratcliffe publicly welcomed the £50m support in an announcement, 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,” Ratcliffe wrote. “Without a strong manufacturing base, the economy will falter. Soaring power prices and burdensome carbon levies are driving industry out of the UK at an unsustainable pace.”

In further comments, Ratcliffe described carbon taxes as “an extremely foolish levy in the world,” contending they put UK plants at a competitive disadvantage against international competitors. It is noted that most chemicals and plastics are not covered from the UK's initial carbon border adjustment mechanism.

Investment and Environmental Pledges

The Ineos spokesperson 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 safeguard skilled jobs. The UK chemicals sector has had a brutal year, yet everyone relies 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 Olefins & Polymers division, said the Grangemouth money would be used to enhance energy efficiency, cut carbon emissions, and upgrade plant performance.

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

It has also been reported that Ineos has previously received significant tax breaks from the EU, worth hundreds of millions of euros—interestingly while Ratcliffe was a prominent backer of the campaign for the UK to leave the EU.