Grangemouth closure symptomatic of “Industrial devastation on an incredible scale” – Scottish Business News

Labour MP Brian Leishman, who represents Alloa and Grangemouth has said in an interview with STV, that the UK and Scottish governments are “sleepwalking” into an industrial catastrophe over the impending closure of the Petroineos Grangemouth Refinery. Last week, Petroineos announced plans to shut down the refinery by the second quarter of 2025, resulting in the catastrophic loss of up to 400 jobs. The decision follows significant financial struggles, with the facility reportedly losing up to $500,000 daily. 

But Labour leader, Sir Keir Starmer has dismissed these allegations. In a separate interview, prior to the Labour Party Conference, Sir Keir responded to the accusation of government inaction, by saying, “I don’t accept that!” His response will have been felt by many to have been a deflection rather than an examination of the issues facing Grangemounth, and Scottish indusry. He emphasized Labour’s focus on the energy transition, saying, “We are absolutely focused on the transition we need to clean power by 2030. Scotland plays a huge part in that. That’s the case we made in the election.”

Sir Keir before the election explaining to a Scottish audience the change that Scotland needs.

Starmer highlighted the importance of newly elected Scottish MPs in delivering on Labour’s promises, stating, “We’ve got those Scottish MPs now, I intend deliver on promises that we made in terms of the economy, in terms the next stage towards transition, and to ensure the good of the future are in. Scotland”. Of course one of those Scottish MP’s Starmer refers to is Brian Leishman. Mr Leishman, by contrast, says of Starmer’s government and the Scottish Government, “They’re complicit in handholding with Petroineos, and they’ve meekly accepted the narrative that one, the refinery isn’t profitable, and two, has to close.” He went on to say, “what we are facing is industrial devastation on an incredible scale”.

The Labour leader’s comments come as both the UK and Scottish governments face criticism for their handling of the Grangemouth situation. Unite general secretary Sharon Graham has described the closure as “an act of industrial vandalism” and called on the Labour government to demonstrate its support for workers and communities alike.

Despite the criticism, Sir Keir refrained from committing to government ownership of the refinery, a proposal put forward by MP Brian Leishman. Instead, he pointed to the £10 million investment from the UK Government into the area, describing it as “the right deal for the local community.”

The closure of Grangemouth, Scotland’s only oil refinery, represents a significant blow to the country’s industrial sector. The site, which has been operational since 1924, currently supplies 65% of Scotland’s oil products, including petrol and diesel. 

Since coming to power, Sir Keir has presided over decisions that strike at the heart of Scottish industry by calling a halt to future North Sea oil exploration and failing to take steps to protect the Grangemouth facility. The new Labour government, led by Prime Minister Keir Starmer, has committed to halting new oil and gas exploration licenses in the North Sea. This policy shift represents a significant change from the previous Conservative government’s approach, which had planned to grant hundreds of new licenses. Both Labour and the SNP governments have been willing to sacrifice current industrial capability in the pursuit of the holy grail of net zero. At time when China’s continuing industrial expansion dwarfs any reduction in greenhouse emissions that could be made under net zero, Scotland faces significant suffering as a result of these policies. The cost of these decisions is borne by those workers and those communities reliant on these industries, and by the mounting energy costs faced by British business.