UK Government to provide £200m investment for Grangemouth, Starmer announces

The UK Government will provide £200m in investment for Grangemouth with the oil refinery set to close in the coming months, the Prime Minister has said.

The funding will come from the National Wealth Fund, Sir Keir Starmer told the Scottish Labour conference, and will be used to “grasp the opportunities at Grangemouth”.

“We will grasp the opportunities at Grangemouth, work alongside partners to develop viable proposals, team up with business to get new industries off the ground and to attract private investors into the partnership we need,” he said.

“We will allocate £200m from the National Wealth Fund for investment in Grangemouth.

“An investment in Scotland’s industrial future – that’s the difference a Labour Government can make because we all know what happens if we don’t win this race, it’s written into the fabric of every community in this nation – the skilled jobs that disappeared, the communities that lost their place in the world.

“Not just the security and dignity of their work, not just their pride and purpose – their identity.”

The funding will help to plan the future of the site, with the refinery due to transition into an import terminal in the coming months, risking as many as 400 jobs.

According to to the Scotland Office, the cash will be available for “co-investment” with the private sector to look at long-term options for the site.

Commenting on the announcement, First Minister John Swinney said: “I welcome this response from the Prime Minister to my call earlier this week for the UK Government to provide its fair share of support for Grangemouth. It is a step in the right direction and this funding must be made available immediately.

“On Tuesday I announced that the Scottish Government is providing £25m to enable businesses to bring forward investable propositions for Grangemouth.

“Everyone working at Grangemouth’s refinery is a valued employee with skills that are key to Scotland’s net zero future. We will continue to work constructively with the UK Government to secure the site’s future.”

Responding to the Prime Minister’s announcement, STUC General Secretary Roz Foyer said: “The Prime Minister’s announcement that £200m will be allocated from the National Wealth Fund to support the workers and community of Grangemouth cannot be dismissed lightly. However, this funding will only have a transformative impact if used correctly and is accompanied by even further investment from both governments.

“Ultimately, the announcement still neglects the clear plan set forward by Unite, which secures the jobs and the futures of the workforce in the here and now. This must be the priority from all governments, not retrospective action that assumes the closure of the site is inevitable.

“We’ll continue to work with Unite the Union, the workers and their communities to provide a hopeful future that provides secure jobs and employment for all those impacted by the closure which, even at this stage, can be avoided.”

Unite general secretary Sharon Graham said: “This is welcome news after months of our campaign and supported by the community of Grangemouth, Keir Starmer and the UK government have finally listened. This needs to be the start not the end in delivering a real workers’ transition for Grangemouth.’

“Following this announcement, it is essential that all stakeholders come together to put the meat on the bones and that this investment counts for jobs and our security. Clear timescales will be important as well as details on jobs.”