UK government admits none of promised £200m has been spent on Grangemouth
A Freedom of Information request revealed that no money from the National Wealth Fund has been ‘committed or spent on projects at Grangemouth’
The UK government has admitted that none of the hundreds of millions of pounds it promised for Grangemouth has been spent.
In response to a Freedom of Information (FOI) request, the Department for Energy Security and Net Zero said that “no funding from the National Wealth Fund has been committed or spent on projects at Grangemouth”.
This is despite Sir Keir Starmer announcing that the former oil refinery would receive £200m from the fund in February 2025.
Falkirk East MSP Martyn Day, whose constituency includes Grangemouth, said: “The Labour Party shutdown Grangemouth and now they’ve reneged on yet another promise. It is a complete disgrace.
“£200m was pledged by the Labour UK Government, but yet again Westminster has betrayed Scottish industry with our energy workers paying the price.
“Refineries and steel works in England have been bailed out by the Labour Party, but the thousands of jobs lost at Grangemouth, Mossmorran and in the North Sea are just not worth saving as far as the UK government is concerned.
“Once again, Scotland's workers and our energy security is paying the price for Westminster mismanagement - the only way to ensure Scotland has an industrial policy which will always put Scotland first is with independence.”
Hundreds of workers lost their jobs at Grangemouth when owners Petroineos - a joint venture between Manchester United owner Sir Jim Ratcliffe and Chinese state owned Petrochina - closed Scotland’s last remaining oil refinery last year.
When asked on Tuesday if he would make Grangemouth a “top priority”, Andy Burnham told the Commons: “I understand that there is a possibility of sustainable aviation fuel production at Grangemouth.
“I find that very interesting, and I keep coming back to it. Perhaps my honourable friend wishes me to persuade No10 North to support him in the development of that proposal.
“I know that there is a financial commitment, but if we do reindustrialise, the money that we put forward to support that process can pay us back over many years to come, through a bigger and flourishing economy in all parts of the UK.”
A Scottish Labour source said: "The UK Labour Government is providing over £120 million support package as part of £150 million investment with INEOS to protect vital chemical production and 500 jobs at Grangemouth.
"John Swinney and the SNP knew about Grangemouth’s challenges and did nothing. It took a UK Labour Government to intervene after they sat on their hands for years.
“The SNP should stop with the platitudes and finger pointing, and get on with working to finally support Grangemouth."
A spokesperson for the Department for Energy, Strategy and Net Zero said: "The Prime Minister has been clear that he will reindustrialise Britain, and we are taking action to secure the long-term future of the Grangemouth industrial cluster.
"That is why the National Wealth Fund stands ready to invest £200 million alongside £14.5 million grant funding from last year’s Budget, which has already begun to be delivered.”
Comments
Want to join the conversation? Please or to comment on this article.