KEIR Starmer has said that the UK Government will invest £200 million in Grangemouth.
The Prime Minister also told the Scottish Labour conference on Sunday that the workers at the closing oil refinery made redundant would be given 18 months’ pay and offers to reskill.
Speaking to media in Glasgow after the speech, he said the £200m should bring in "three times that" in private funding, so £600m for a total of £800m.
The Labour leader told the conference: “First, we must protect working people in the here and now. And let’s be clear – we are.
“Every worker made redundant – every worker – will get eighteen months full pay.
“There will also be a skills and training offer backed with up to £10 million from the UK Government, and any business within the Grangemouth Freeport area that takes on these workers will get National Insurance relief.”
Starmer said that Grangemouth is “not a charity case”, going on: “Just look at the assets. Access to the North Sea. A deep sea port. An effective grid connection. Infrastructure links to the northeast. A strategic location midway between Scotland’s two major cities. World-class universities. A skills pipeline for the future.
“A £100m Growth Deal already in place. A partnership between this Government and the Scottish Government. We welcome their support on this, the accelerator money they announced earlier this week. But conference – we need more.”
He said Grangemouth “could have a future in bioengineering, in biofuels, or in hydrogen energy”, adding: “I can announce today, 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. “An investment in Scotland’s industrial future, that’s the difference a Labour Government can make.”
STUC alongside Unite have pushed for the site to manufacture sustainable aviation fuel.
Foyer said: "The Prime Minister’s announcement that £200 million 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."
Scottish Labour had faced protests over Grangemouth on the first day of the party conference in Glasgow.
Ahead of the General Election, Scottish Labour leader Anas Sarwar had pledged that Labour would step in to save jobs at the oil refinery, which is set to close later this year.
However, some 400 workers were made redundant early in 2025, leading to accusations that Labour had broken the pledge.
Commenting on the announcement of £200m in funding, Energy Secretary Ed Miliband said: “We have always said that we will leave no stone unturned in seeking a sustainable industrial future for Grangemouth and its workers.
“Alongside our ongoing support for affected workers, this investment will help unlock the site's long-term potential, with the backing of the private sector.
"This will create good jobs in vital new industries and drive growth and investment in the local community as part of our Plan for Change.”
