Zarah ChoudharyThe National Wealth Fund will provide £200m of investment to new opportunities in Grangemouth as part of a major intervention to ensure the long-term future of the industrial site, the Prime Minister announced on 23rd February, 2025.
The funding will be available for co-investment with the private sector to help unlock Grangemouth’s full potential and secure a clean energy future.
The Government will also provide a ‘training guarantee’ for all Grangemouth refinery staff to ensure that any who would like skills training at the local college are supported with funding, to help them into new jobs with local employers.
Prime Minister Keir Starmer said: “My Government has already taken decisive action to protect good British jobs in industries that are vital for our economic security: saving Harland and Wolff, investing in the future of Hitachi in North-East England, a new plan for an electric arc furnace at Port Talbot – secured this week.
“We will grasp the opportunities at Grangemouth, work alongside partners to develop viable proposals and team up with business to get new industries off the ground.
“And to attract private investment into the partnership we need we will allocate £200 million from the National Wealth Fund for investment in Grangemouth – an investment in Scotland’s industrial future.”
The announcement builds on existing investments from the UK Government, in partnership with the Scottish Government, aimed at securing the long-term economic future of the area.
Among them is the £100m Falkirk and Grangemouth Growth Deal, delivered jointly with the Scottish Government, which supports the community and its workers by investing in local energy projects to create new growth opportunities in the region.
Additionally, there is coordinated support from the Department for Work and Pensions (DWP) and the Department for Energy Security and Net Zero (DESNZ), offering tailored career and skills support for refinery workers to help them find new employment.
Another initiative is the £1.5m Project Willow feasibility study, also jointly funded with the Scottish Government, which seeks to identify credible long-term industrial options for the Grangemouth site.
The Prime Minister also reiterated the Government’s commitment to working in partnership with the Scottish Government to identify a viable, low carbon industrial future for the Grangemouth site.
Energy Secretary Ed Miliband said: “We have always said that we will leave no stone unturned in seeking a sustainable industrial future for Grangemouth and its workers.
“Alongside our ongoing support for affected workers, this investment will help unlock the site’s long-term potential, with the backing of the private sector.
“This will create good jobs in vital new industries and drive growth and investment in the local community as part of our Plan for Change.”
Scottish Secretary Ian Murray said: “The UK Government has been working at speed to ensure a long-term future for Grangemouth and the National Wealth Fund allocation announced today demonstrates our commitment to this.
“We remain committed to working closely with the Scottish Government and other partners to support the refinery workers and ensure the long-term future of this site.”
Sharon Graham, general secretary at Unite, 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.
“Following this announcement, it is essential that all stakeholders come together to put the meat on the bones and that this investment counts for jobs and our security.
“Clear timescales will be important as well as details on jobs.”
