Starmer announces ‘huge opportunity’ for Grangemouth with £200 million boost

Prime Minister Sir Keir Starmer has announced £200 million to help secure a new future for the Grangemouth oil refinery ahead of its closure later this year.

Owner Petroineos confirmed plans to axe the refinery there last year, with redundancy notices having now been sent out to hundreds of workers.

But Sir Keir said there was a “huge opportunity for renewal”, saying the site, which is Scotland’s only oil refinery, could have a future in areas such as biofuels or hydrogen energy.

Speaking about Grangemouth as he addressed the Scottish Labour conference in Glasgow, the Prime Minister promised: “We will stand behind this symbol of Scotland’s industrial brilliance”.

Stressing the need to act “quickly” he said government would look to work alongside others to “develop viable proposals” for the future of the site.

Promising £200 million from the UK’s National Wealth Fund, he said this would be “an investment in Scotland’s industrial future”.

But it is hoped this cash could bring in a further £600 million from the private sector, with Sir Keir saying that would be a “huge investment in Grangemouth”.

He added: “That is the future of Grangemouth, an important part of Scotland for generations to come.”

The Labour leader stressed: “I want to do is take the time to do this properly, and that’s why this is so important working up the viable options here.”

His comments came after he told supporters at his party’s conference in Glasgow that Labour would “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”.

And he stressed that this was the “difference a Labour Government can make”.

The money comes on top of £100 million of cash from the Scottish and UK governments for the local area, with Project Willow, which is due to report in the coming weeks, set up to look at future options for the plant when the refinery goes.

He announced the cash as he said that Labour would work to deliver a “new hope for Scotland” as part of “a Britain once again united by the interests of working people”.

In addition to this he said a “comprehensive package” would mean that every worker made redundant will receive 18 months full pay, and could also benefit from skills and training being provided as part of a scheme funded by the UK Government with up to £10 million.

Meanwhile, businesses in the Grangemouth freeport area which take on former refinery workers will get national insurance relief the Prime Minister said.

His comments on Grangemouth came as he also stressed the importance the UK’s oil and gas sector would have for “decades” to come.

Saying that the transition to renewable power “must be managed pragmatically” the Labour leader argued that “the oil and gas in our waters is also vital for our security”.

By reducing the reliance on imported Russian fuel, he said the sector “strengthens our national security, get (Vladimir) Putin’s boot off our throat”.

The Prime Minister made clear: “Oil and gas will be part of the future in Scotland for decades to come. Decades.”

His comments came as he warned the “price of inaction” could be a rise in “dangerous right-wing politics”.

With polls showing Reform UK ahead of Labour, Sir Keir said his party had to “be ready for this test”.

Hitting out at Nigel Farage’s party, he insisted that “beneath their bluster, the alternative they offer is alien to working people”.

Attacking Mr Farage and his MPs, he said on their “rare visits to Parliament” they had voted against improved workers’ rights being introduced by Labour.

Sir Keir added: “They claim to be the party of patriotism.

“But they’re fawning over Putin.

“They are not the answer for working people in Britain. And they are not the answer for Scotland.”

Responding to the Prime Minister on X, the Reform UK leader said: “I see that the Prime Minister chose to attack Reform UK again during a speech in Scotland today. We must be doing something right.”

Meanwhile he claimed John Swinney’s SNP, which is ahead again in the polls in Scotland, is “out of excuses”.

He accused the Scottish Government of “basic incompetence and failure” in schools and in public services, telling the conference: “It is high time they took responsibility.”

The Labour leader added: “I will contrast our record in seven months, versus their 19 years, any day of the week.”