Starmer announces £200m for Grangemouth

The prime minister has announced £200m for Grangemouth ahead of the closure of Scotland's last oil refinery.

Sir Keir Starmer, speaking at the Scottish Labour conference on Sunday, said the cash would come from the National Wealth Fund for an "investment in Scotland's industrial future".

Grangemouth oil refinery, on the banks of the Firth of Forth, is set to cease operation this summer and transition into an import terminal, making 400 workers redundant.

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Sir Keir said: "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.

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

The money comes on top of a £100m "growth plan" already in place for the area.

Sir Keir said the new investment will be a partnership with the private sector, and he is expecting three times the amount the government is putting in to come from private investors.

The prime minister said he believes the transition to clean energy is a "golden opportunity for Britain, especially for Scotland", and is essential for national security as it "gets Putin's boots off our throat".

However, he said oil and gas are also "vital for our security" so will be "part of the future of Scotland for decades to come".

As well as the investment in Grangemouth's future, Sir Keir said every person made redundant will get 18 months full pay and a skills and training offer "backed up with up to £10m".

Any business in Grangemouth that takes on those workers will get National Insurance relief, he also said.

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Petroineos, which owns Grangemouth, announced last September it was to close Grangemouth by this summer because it was unable to compete with sites in Asia, Africa and the Middle East.

The refinery is understood to have been losing about £395,000 a day when it made the announcement and was on course to lose about £153m this year.

The company said the decision would "safeguard fuel supply for Scotland" by converting the site into a terminal able to import petrol, diesel, aviation fuel and kerosene into Scotland.

However, it said that would only need a workforce of fewer than 100 employees.

Petroineos announced its intention to close the plant in November 2023 but union leaders had hoped it could remain open for longer to provide time for a green alternative to be established there.

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