UK (Parliament Politics Magazine) – Unite accuses UK PM Keir Starmer of breaking £200m pledge to Grangemouth workers as refinery closures and high energy costs threaten jobs.
As reported by The Telegraph, trade union Unite criticises Keir Starmer for failing to deliver £200m promised to support Scotland’s Grangemouth refinery workers.
The Scottish refinery has closed, and a nearby petrochemical plant has faced five years of losses, risking hundreds of jobs.
What did Unite say about Starmer’s £200m Grangemouth pledge?
Unite, a major Labour backer, accused Keir Starmer of failing to deliver £200m support, claiming not a single penny has reached workers.
Both sites are managed by Ineos, the UK chemicals giant founded by Sir Jim Ratcliffe, also a billionaire owner of Manchester United.
He warned that Britain’s high energy costs, driven by green levies, make running these plants unprofitable.
Sharon Graham, Unite’s chief, said Keir Starmer broke his £200m pledge for Grangemouth from the National Wealth Fund.
She said,
“Despite the refinery [the only one in Scotland] ceasing production in April and hundreds of jobs being shed at the complex, including at the chemicals plant and among contractors based at the site, not one penny of the promised investment has been spent.”
Ms Graham stated,
“It is little wonder workers are turning away from Labour in their droves when they fail to protect British jobs and critical infrastructure.”
She said,
“Promises made to the workers of Grangemouth have been broken. Unite produced a clear plan for the site to be transformed, to bring back workers and create the promised green jobs. The Government’s failure to act shows there is absolutely no plan for a jobs transition.”
What did Michelle Thomson say about Labour’s broken £200m Grangemouth pledge?
Michelle Thomson, SNP MP for Grangemouth, stated,
“The broken promises made by UK Labour over Grangemouth are piling up. There is no sign of the £200m they promised, and the UK Chancellor couldn’t even be bothered to raise the issue of the refinery when she met Ineos recently.”
She said,
“As predicted, there is emerging evidence that energy prices under their watch are crippling current businesses and stifling new ones.”
Ms Thomson added,
“At Grangemouth, there are now clear risks to the chemical sector too – yet UK Labour seem completely unaware of the damage they are causing. The workers and the Scottish people are watching in despair at their disinterest and inaction.”
What did the Energy Department say about the £200m Grangemouth support plan?
The Department for Energy Security and Net Zero stated,
“We know this has been an incredibly difficult time for workers and their families. When we came to power, there was no overall plan for the future of the Grangemouth refinery, and within weeks we delivered an unprecedented support package.”
They added,
“The National Wealth Fund is investing £200m and we are working closely with investors to advance sustainable, long-term proposals for the site.”
How are high energy costs affecting Ineos and UK manufacturing?
Ineos in the UK and Europe faces rising energy costs from green levies. Britain’s industrial electricity costs 27p per KWh, higher than Germany (18p), Spain (13p) and South Korea (9p).
According to the Office for National Statistics, rising energy costs cut UK heavy manufacturing by 31% between 2021 and 2024.
Keir Starmer’s pledge about Grangemouth investment?
At the Scottish Labour conference in February, 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.”
He stated,
“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.”
Mr Starmer added,
“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.”
What did Ed Miliband say about Grangemouth investment?
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.”
He added,
“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.”
Key facts about Grangemouth refinery
The Grangemouth Refinery, founded in 1924 near Grangemouth Docks, was Scotland’s first crude oil refinery. At its peak, it employed over 2,000 workers, but by 2025, closure cut 400 jobs, leaving around 100.
The refinery supplied 70% of Scotland’s fuel, including petrol, diesel, and aviation fuel. After 101 years, it stopped refining crude oil and transitioned into an import terminal.
Details about trade union Unite
Unite was formed in May 2007 by merging Amicus and TGWU, creating one of the UK’s largest unions.
It has over 1.2 million members across sectors like manufacturing, transport, aerospace, and healthcare. The union is organized into regions across England, Scotland, Wales, and Ireland.