THE First Minister has called on Scottish Labour to support the Budget following Keir Starmer’s announcement of an extra £200 million for Grangemouth.
Speaking to the Scottish Labour conference in Glasgow on Sunday, the Prime Minister pledged the cash from the National Wealth Fund, which he said would be an “investment in Scotland’s industrial future”.
It comes after John Swinney pledged a further £25m to secure a “just transition” for Grangemouth.
He wrote to Scottish Labour leader Anas Sarwar on Monday, ahead of the final vote on the Scottish Budget on Tuesday.
Scottish Labour previously said they would abstain from the vote – yet Starmer’s announcement over the weekend has renewed calls for the party to support the Budget.
In his letter to Sarwar, the First Minister said: “I welcome the response from the Prime Minister to my call last week for the UK Government to provide support for Grangemouth.
“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 £25 million 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 £200 million 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 £90 million investment for Grangemouth, supporting the jobs, livelihoods and businesses which depend on it.”
Ahead of the final vote on Tuesday, Scottish Labour’s finance spokesperson Michael Marra said: “This Budget is only possible because the UK Labour Government delivered a £5.2 billion uplift to Scotland’s budget – resulting in the largest budget settlement in the history of devolution.
“The SNP looks set to pass this Budget, but they have failed to take the opportunity to transform public services and make them fit for the future.
“With 1 in 6 Scots on NHS waiting lists, our schools falling down international league tables and record homelessness levels, Scotland needs a new direction.
“An end to waste, value for taxpayers’ money and a genuine plan to get our public services working again – Scottish Labour will deliver that new direction in 2026.”
