UK Government to invest £14.5m into Grangemouth transition

The UK Government will invest up to £14.5m in funding for Grangemouth to support its transition into a clean energy hub.

The site in Falkirk has been in operation for a century, but will become an import hub for finished fuels after operators said continuing as a refinery was not financially viable.

Hundreds of staff have already left through voluntary redundancy, with compulsory job cuts also taking place.

Grangemouth halted production in April, resulting in the loss of more than 400 jobs. In June, the Scottish Government invested £25m into the Grangemouth Just Transition Fund in light of job losses expected to impact the industry.

Chancellor Rachel Reeves is set to announce, as part of her budget, that the UK Government will invest £14.5m into the site.

It is hoped that the latest injection of funds will transform Grangemouth into a green industrial hub.

A Treasury source said: “We said we would stand squarely behind communities like Grangemouth, and we meant it.

“And we’re building on what we have done already by putting millions in as a starter to help put the community on a firm footing and strengthening its places as part of the clean energy revolution.

“These investments will help deliver a fair transition for Grangemouth, securing jobs for local people way into the future.”

The commitment from the UK Chancellor comes on top of the £200m pledged by the Prime Minister from the National Wealth Fund, and the £100m Falkirk and Grangemouth Growth Deal.

The UK Government has invested £17.3m in the Aberdeen Energy Transition Zone and is headquartering GB Energy in the north-east as part of efforts to build Scotland’s clean energy industries.

A Scotland Office source said: “Douglas Alexander has been clear that we are working hard to secure a long-term future for the Grangemouth site.

“This UK Government investment will create high-quality jobs for the local community and help secure the future of Grangemouth as part of our clean energy future.”