Calls to nationalise Grangemouth refinery to safeguard its future and jobs

It comes after an emergency sitting in the House of Commons on Saturday when the government seized control of British Steel from its Chinese owners.

Local Labour MPs and the SNP have called on the government to act to safeguard the Grangemouth plant.

However, Business Secretary Jonathan Reynold said the situation at the Grangemouth oil refinery “is not a comparable situation” to the one at British Steel in Scunthorpe.

Owners Petroineos plan to close the refinery with the lost of at least 400 jobs and many more in the supply chain.

On Saturday Mr Reynolds told the Commons: “I understand that some have asked about precedent or referenced other troubled industrial situations.

“And to be clear again, this is an exceptional situation, a unique situation, and the question for all members is whether we as a country want to continue to possess a steel industry, do we want to make the construction steel and rail we need here in the UK, or do we want to be dependent on overseas imports?”

SNP Westminster leader Stephen Flynn told MPs: “Many minds right now will be very much focused on the situation in Grangemouth, where we know that hundreds of jobs are going to be lost directly, 1000s of jobs in the supply chain.

“Now, were I, or perhaps even the local member for Alloa and Grangemouth (Labour MP Brian Leishman), to bring forward a similar bill in respect of Scotland’s only oil refinery, to save it, to give him (Mr Reynolds) the executive power to do as he pleases, as he is doing with British Steel, would the Labour Party back it in the same way as it is backing this Bill today?”

Mr Reynolds replied that “this Labour Government has pledged £200 million to secure its long-term future”.

He added that “it is not a comparable situation and the behaviour of the company is not comparable to the situation in this case”.

But Mr Flynn 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."

Falkirk MP Euan Stainbank returned to Westminster on Saturday to vote for the Labour Government’s plan to secure the future of British Steel – describing the move as a “crucial step for national industrial security”.

Although he wasn’t called to speak during the emergency debate, the Falkirk MP confirmed that he submitted a series of parliamentary questions to press the case for urgent action on the future of the Grangemouth industry.

Mr Stainbank said: “On Saturday, I travelled to Parliament from a family holiday to vote for the Government's plan to secure British Steel. This is a welcome and crucial step for national industrial security.

“Grangemouth remains a priority for myself as a Falkirk MP. From successfully campaigning for a £200 million commitment from the National Wealth Fund for Grangemouth, to continually raising policy barriers to new industries in the House.

“On Saturday, I was unable to get in to speak but intended to raise further support for my constituents who work in Grangemouth.

“The Scottish Affairs Committee last week exposed that SNP and Conservative Ministers knew for five years about the risk to Grangemouth and failed to lift a finger to help. While I will continue to raise this in the House, it is galling to see the blatant political spin in Parliament from colleagues who refused to engage with or ignored the Grangemouth refinery prior to the announcement of closure in 2023.”

In addition to submitting the parliamentary questions to the Secretary of State for Energy Security and Net Zero, Mr Stainbank has also written to the Secretary of State for Business and Trade requesting an urgent meeting to discuss what further support the UK Government can provide to secure Grangemouth’s future and remove policy barriers to accelerated investment.

The MP added: “These written questions and my letter to the Secretary of State are part of my ongoing efforts to ensure that Grangemouth is not left behind. I’ve been clear that Grangemouth matters – not just for Falkirk, but for Scotland and whole of the UK – and I will continue to press for the answers, meetings and any action that secures an industrial future for Grangemouth.”

Brian Leishman, Labour MP for Alloa and Grangemouth, has also called for nationalisation of the refinery.

He said: “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.”