Starmer declares £200m for Grangemouth

The prime minister has introduced £200m for Grangemouth forward of the closure of Scotland’s final oil refinery.

Sir Keir Starmer, talking on the Scottish Labour convention on Sunday, stated the money would come from the Nationwide Wealth Fund for an “funding in Scotland’s industrial future”.

Grangemouth oil refinery, on the banks of the Firth of Forth, is set to stop operation this summer time and transition into an import terminal, making 400 employees redundant.

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“We’ll allocate £200m from the Nationwide Wealth Fund for funding in Grangemouth.”

The cash comes on prime of a £100m “development plan” already in place for the realm.

Scotland’s first minister, the SNP’s John Swinney, welcomed the announcement and stated it’s “vital that the Scottish and UK governments work collectively on securing the longer term for the workforce”.

Sir Keir stated the brand new funding might be a partnership with the personal sector, and he’s anticipating 3 times the quantity the federal government is placing in to come back from personal buyers.

The prime minister stated he believes the transition to wash vitality is a “golden alternative for Britain, particularly for Scotland”, and is crucial for nationwide safety because it “will get Putin’s boots off our throat”.

Nonetheless, he stated oil and gasoline are additionally “very important for our safety” so might be “a part of the way forward for Scotland for many years to come back”.

In addition to the funding in Grangemouth’s future, Sir Keir stated each individual made redundant will get 18 months full pay and a abilities and coaching provide “backed up with as much as £10m”.

Any enterprise in Grangemouth that takes on these employees will get Nationwide Insurance coverage aid, he additionally stated.

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Petroineos, which owns Grangemouth, introduced final September it was to shut Grangemouth by this summer time as a result of it was unable to compete with websites in Asia, Africa and the Center East.

The refinery is known to have been dropping about £395,000 a day when it made the announcement and was on track to lose about £153m this 12 months.

The corporate stated the choice would “safeguard gas provide for Scotland” by changing the location right into a terminal capable of import petrol, diesel, aviation gas and kerosene into Scotland.

Nonetheless, it stated that will solely want a workforce of fewer than 100 staff.

Petroineos introduced its intention to shut the plant in November 2023 however union leaders had hoped it may stay open for longer to supply time for a inexperienced different to be established there.