Labour Pledges £200 Million Pounds for Grangemouth Refinery Regeneration Plan

In a significant development for Scotland’s industrial sector, Labour leader Keir Starmer has unveiled a £200 million funding package aimed at rejuvenating the Grangemouth oil refinery site. The investment, sourced from the national wealth fund, is expected to attract up to £600 million in private sector capital.

The announcement comes amidst mounting pressure from trade unions and local stakeholders following the planned closure of Scotland’s last remaining oil refinery, which threatens over 400 direct jobs and thousands more in the supply chain. The prime minister’s strategic intervention seeks to establish a sustainable industrial future for the region.

Market analysts note that the investment strategy could potentially accommodate up to five companies at the Grangemouth site, marking a pivotal shift in the facility’s operational focus. The move arrives as Labour faces declining popularity in Scotland, with recent polls indicating support as low as 18%.

The Scottish National Party has already committed £25 million to a “just transition fund” for Grangemouth, supplementing £7.8 million from its existing budget. Unite’s general secretary, Sharon Graham, has proposed temporary government control of the PetroIneos-owned facility to facilitate its conversion to green aviation fuel production.

Energy and Net Zero Secretary Ed Miliband emphasised the government’s commitment to securing a viable future for the plant, though regulatory and technical hurdles currently impede immediate development of sustainable aviation fuel infrastructure. The Scottish TUC has acknowledged the significance of the funding package while advocating for more proactive measures to prevent site closure.

This strategic investment represents Labour’s most substantial economic intervention in Scotland since taking office, demonstrating the government’s commitment to industrial regeneration and sustainable energy transition in the region.