The UK Government has pledged an additional £200 million from the National Wealth Fund to support the future of the Grangemouth oil refinery, but trade union leaders have stressed the funds must be “used correctly” to have a meaningful impact.
Speaking at the Scottish Labour Conference in Glasgow, Prime Minister Sir Keir Starmer described the funding as an investment in Scotland’s industrial future, aimed at developing viable alternatives for the site, which currently employs more than 400 workers and is set to close in 2025.
Union Leaders Demand a Clear Strategy
Scottish Trades Union Congress General Secretary Roz Foyer welcomed the funding but said further financial support from both the UK and Scottish governments would be necessary. She emphasised that the investment must be strategically allocated to ensure a transformative impact.
“This funding will only be effective if used correctly and accompanied by further investment from both governments,” Foyer stated.
She also criticised the announcement for overlooking Unite’s proposal to repurpose Grangemouth into a sustainable aviation fuel production hub.
Unite’s General Secretary Sharon Graham acknowledged that the UK Government had “finally listened” to the unions and campaigners advocating for Grangemouth’s future. However, she insisted this must be only the beginning of a genuine worker-led transition plan.
The Future of Grangemouth
Scotland’s only oil refinery is scheduled to shut down in the second quarter of 2025, with redundancy notices already issued to workers. The future of the Petroineos-owned site has been uncertain, with discussions focusing on a potential transition to a low-carbon industrial hub.
UK Energy Secretary Ed Miliband said the funding would “unlock the site’s long-term potential” and attract private sector backing, ensuring the creation of new green jobs.
Scottish Secretary Ian Murray echoed this sentiment, adding that the government was working at speed to secure Grangemouth’s long-term future.
First Minister John Swinney also welcomed the investment, following the Scottish Government’s £25 million pledge last week.
With the refinery’s closure imminent, industry leaders, unions, and government officials will now work to define the next steps and ensure that the funding leads to sustainable industrial transformation.
