Keir Starmer announces £200m for Grangemouth

The UK Government will invest an extra £200m in the Grangemouth industrial complex to support its transition to the green economy, Prime Minister Keir Starmer has announced.

Addressing the Scottish Labour conference in Glasgow, the prime minister said the site was a “huge opportunity” for Scotland to benefit from growing the bioengineering, biofuel and hydrogen sectors.

The additional cash will come from the National Wealth Fund, which aims to encourage private sector investments in projects across the UK.

Starmer said: “We will grasp the opportunities at Grangemouth, work alongside partners to develop viable proposals, [and] team up with businesses to get new industries off the ground.

“And to attract private investors into the partnerships we need, we will allocate £200m from the National Wealth Fund for investment in Grangemouth.”

The announcement means up to £200m will be available for the private sector to apply for to support projects, and it being delivered will be dependent on viable projects coming forward.

Speaking to journalists afterwards, the prime minister said the hope is this will bring in £600m of investment from the private sector.

Asked whether this announcement had come too late given redundancy notices had already been issued to workers, he said his government had taken the time “to work up a credible proposal”.

“It’s very easy to put proposals on the table that don’t hold water. What I want to do is take the time to do this properly, and that’s why this is so important – working up viable options here, because we’re not talking about something that tides people over, not something for the next three or four years. It’s a generational opportunity for Grangemouth,” he added.

The closure of the Scotland’s last refinery was announced in 2023 and it was confirmed last autumn that operations would cease before the end of June this year.

Site owners Petroineos have moved to create an fuels import terminal which requires far fewer staff.

Those who are to be made redundant will receive 18 months full pay, and the UK Government has offered National Insurance relief to any business in the Grangemouth Freeport area that takes on a former Grangemouth worker.

Trade union Unite, which is behind the Keep Grangemouth Working campaign, said the announcement was a "step in the right direction". 

General secretary Sharon Graham said: “This is welcome news after months of our campaign and supported by the community of Grangemouth, Keir Starmer and the UK government have finally listened. This needs to be the start not the end in delivering a real workers' transition for Grangemouth."

Starmer was addressing the conference ahead of a trip to the United States next week, where he will meet President Donald Trump.

He said those discussions will emphasise the “special relationship” between the UK and US, as well as the situation on Ukraine.

In his speech, the prime minister said his government would continue to “stand with the people of Ukraine” as he warned that instability in Europe “always washes up on our shores”.

He added: “It is time to take responsibility for our security, our continent, and I am clear that Britain will take a leading responsibility. We have to be ready to play our role if a force is required in Ukraine once a peace agreement is reached.”

Trump last week sparked serious concerns among leaders in Europe after dubbing the Ukrainian president, Volodymyr Zelenskyy, a “dictator”.

The US government also met with Russia to talk about peace negotiations without the presence of Ukrainian representatives.

In Glasgow, the prime minister accused Nigel Farage’s Reform UK of “fawning over Putin” and warned about “dangerous right-wing politics” more broadly.

He also criticised the SNP’s record, accusing the party of putting “gesture politics first, Scotland second”.

Asked by journalists whether his unpopularity would cause problems for Scottish Labour ahead of the next Scottish Parliament elections next year, Starmer said he and Scottish leader Anas Sarwar were working very closely together” to deliver on Scottish priorities.

Sarwar added: “We’ve proven the pollsters, the pundits, the commentators wrong before, and we’ll do it again next year.”