Swinney urges Sarwar to vote for Budget after UK funding pledge for Grangemouth

First Minister John Swinney has written to Scottish Labour leader Anas Sarwar urging him to vote for his Government’s Budget after Sir Keir Starmer’s announcement of an extra £200m for the Grangemouth oil refinery site.

Speaking at the Scottish Labour conference on Sunday, the Prime Minister and UK Labour leader pledged the cash from the National Wealth Fund, which he said would be an “investment in Scotland’s industrial future”.

The funding is intended to help plan the future of the site, with the refinery due to be remade as an import terminal in the coming months, risking as many as 400 jobs.

Sarwar has previously said his party would abstain from the Scottish Budget vote, meaning the Holyrood Government should have the numbers needed to pass its tax and spending plans.

Anas Sarwar with Sir Keir Starmer PA Media

Swinney wrote to Sarwar: “I know you share my concern that the decision to close the Grangemouth refinery is premature and fundamentally short-sighted and the UK Government’s commitment to additional investment is a step in the right direction.

“We all have a responsibility to work collaboratively to secure Grangemouth’s long-term future, its workforce and Scotland’s transition to net zero.

“My announcement last week that the Scottish Government will make a further £25m available to enable businesses to bring forward investable propositions for Grangemouth will be put to Parliament as an amendment at stage three of the Budget Bill tomorrow.

“This funding will be made immediately available from the beginning of the next financial year without requiring match-funding.

“I hope that when the UK Government provide more details on the announced £200m being available through the National Wealth Fund that this will also be available for timely deployment on a similar basis as the funding I have set out and that these funds align to best support a just transition for Grangemouth.

“In that spirit of co-operation, I trust that you and Scottish Labour colleagues will now be in a position to vote for the Budget at stage three tomorrow and work constructively to deliver the nearly £90m investment for Grangemouth, supporting the jobs, livelihoods and businesses which depend on it.”

Sarwar previously said he would only vote for the Budget if the SNP committed to ending the two-child benefit cap on April 1.