SNP demand Grangemouth plans 'reconsidered' as British Steel nationalisation talks held

The SNP has urged the UK government to consider all options over the future of Grangemouth amid reports Labour is considering nationalising British Steel.

British Steel has launched a consultation on the proposed closure of blast furnaces at its Scunthorpe plant, with UK government figures talking to the company’s Chinese owner Jingye.

The Grangemouth refinery. Picture: Michael Gillen, NationalWorld

Now Stephen Flynn, the SNP Westminster leader, has argued the Grangemouth site is of clear strategic national importance and just like British Steel, must be reconsidered in the context of the global economic storm caused by Donald Trump’s tariff scheme.

He said: "Grangemouth is our sole refinery and central to our energy security. If British Steel is considered viable for nationalisation as an industry of strategic national importance, then our ability to sustain our energy demand surely is too.

"The UK is isolated in a global economic storm and we need a rethink from the Labour Government in that context. Energy security is a matter of national security and Grangemouth is central to that.

"Scotland's vast energy wealth has a role to play in supporting our European partners as America becomes an increasingly unreliable ally and we should view all of our assets in those conditions, particularly as a global trade war rages.

"The Labour government keep telling us ‘the world has changed’. But it's time they rose to that challenge, ditched the fiscal rules and invested in key strategic priorities, including our energy sector - that brings security, it brings growth and it secures jobs.

"The future of Grangemouth is a litmus test for any government that reports to take our energy security seriously and has ambitions for sustainable growth. I urge the UK Labour Government to rise to that challenge."

His plea comes after the findings of Project Willow – a report that looked at options for the site as it prepares to close in the coming weeks – were released last month. The report details nine potential avenues, including the production of sustainable aviation fuel (SAF), which is backed by union leaders.

Last week MPs heard potential projects to replace the Grangemouth refinery could be off the ground by 2030, “if not before”.

SNP Westminster leader Stephen Flynn | Lesley Martin/Press Association

Scottish Labour MP Brian Leishman, who has previously urged the UK government to nationalise the site's oil refinery, said the decision was fundamental to the green transition.

The Alloa and Grangemouth MP told The Scotsman: “The strategic importance of the Grangemouth refinery cannot be overstated - for the workers, the local community and all of Scotland.

“Key essentials that are vital to the day-to-day running and security of a nation should be under government control, that is common sense.

“While the recommendations that Project Willow will come up with and also the move away from oil reliance is necessary, the UK government should step in and invest in the here and now and that means maintaining refinery operations at Grangemouth until the new energy industries of the future are ready.

“Nationalisation of the refinery is a test of our ability to provide a truly just transition that looks after workers and communities as well as safeguarding Scotland’s energy security in an increasingly volatile world.”

Deputy First Minister Kate Forbes on Monday demand “bold and decisive action” from the UK government to help protect Scottish industry at a time of global economic volatility, including at Grangemouth.

The UK government has been approached for comment.