Scottish Government announce £25m funding for Just Transition, John Swinney announces

Scotland’s First Minister has pledged a further £25m to secure a “just transition” for Grangemouth.

In September, it was announced that Grangemouth will close in spring 2025.

The central Scotland facility is set to transition to become an import terminal, as owner Petroineos reported massive losses at the refinery.

From around 500 staff, some 65 are due to be kept on to work at the new terminal operation, with job losses set to take effect in a time span of three to 18 months.

On Tuesday, John Swinney an additional £25m funding in a statement to the Scottish Parliament, stating the funds would come from ScotWind revenues in a budget amendment.

He said the additional funding would take the Scottish Government’s total investment for the site to £87m.

Swinney said: “Any redundancy, whether voluntary or compulsory, is a matter of deep regret.

“That is particularly so given that this government believes that refining at Grangemouth should continue, that this closure is premature, and that it is detrimental to Scotland’s transition to net zero.”

The Scottish and UK governments previously said they have put together a £100m package to support staff and the community.

The First Minister has now urged the UK Government to at least match the Scottish Government’s just transition fund.

“We need the UK Government to do at least the same and deliver a fair amount to avoid significant economic disruption in central Scotland, and to protect and promote Scotland and Grangemouth’s future interests”, he added.

“In short, we need this Labour Government to do what it said it would do before the election.”

Responding to the First Minister’s statement, SNP MSP for Falkirk East Michelle Thomson said: “I am pleased that the Scottish Government has today announced concrete action to improve the future for Grangemouth and its workforce.

“The closure of the refinery could have a devastating impact, and the Labour Party – despite promising to save Grangemouth – has been missing in action since entering government last year.

“However, with limited powers and a fixed budget the Scottish Government is working to build a secure and sustainable future through the Grangemouth Just Transition Fund, worth £25m on top of the £7.8m already provided in the budget.

“The Labour government at Westminster must match this action, having invested hundreds of millions in similar projects across England, to ensure the survival of Grangemouth and protect the livelihoods which depend on it.”

A £1.5m report into the feasibility of Grangemouth becoming a low-carbon energy hub, known as Project Willow, is due to be published by the end of the month.

Scottish Conservative leader Russell Findlay welcomed the funding announcement but blamed the Scottish Government for creating a “hostile environment” for fossil fuel firms.

He said: “I find it remarkable that in a statement of around 1,600 words, the words ‘oil and gas’ were not even mentioned once.

“The truth is that the party who used to champion Scotland’s oil now seem to regard it as a dirty word.

“Grangemouth workers know that the anti-oil and gas sentiment from the SNP in Edinburgh and Labour in London has been fatal.”

Scottish Green MSP Gillian Mackay said: “This is a welcome announcement from the Scottish Government, but it needs to be backed up by resources and a plan from the UK government.

“I hope that ministers will work with the trade unions to retain jobs and skills in the community and to ensure that it is workers and local people who are leading the process.

“The reality is that the biggest decisions have to be made in Westminster. Labour promised that they would protect jobs but since taking office they have done nothing of the sort. They simply got people’s hopes up and walked away.

“Grangemouth is my home, and it has been infuriating to watch promises being made and then dropped. People in the town have been let down so many times already and a lot of them are feeling abandoned.

“Local workers have been cast aside by INEOS and misled and discarded by a Labour Party that was happy to make big promises to secure their votes and has ignored them ever since.

“Even at this late stage I urge the UK government to apply every lever available to ensure that the community is protected and that we can keep people and skills in Grangemouth.”