LABOUR have been branded a “complete disgrace” after it emerged that none of the millions of pounds promised for Grangemouth has been spent.
In response to a freedom of information request, the Department for Energy Security and Net Zero (DESNZ) said that “no funding from the National Wealth Fund has been committed or spent on projects at Grangemouth”.
In February 2025, then-prime minister Keir Starmer announced that the former oil refinery would be given £200 million from the fund.
Martyn Day, Falkirk East SNP MSP, whose constituency includes Grangemouth, said: “The Labour Party shut down Grangemouth and now they’ve reneged on yet another promise.
“It is a complete disgrace.
“£200m was pledged by the Labour UK Government, but yet again Westminster has betrayed Scottish industry with our energy workers paying the price.
“Refineries and steel works in England have been bailed out by the Labour Party, but the thousands of jobs lost at Grangemouth, Mossmorran and in the North Sea are just not worth saving as far as the UK government is concerned.
“Once again, Scotland's workers and our energy security is paying the price for Westminster mismanagement – the only way to ensure Scotland has an industrial policy which will always put Scotland first is with independence.”
The request, seen by The National, asks for how much of the £200m has been spent and itemisation of any expenditure from this fund.
The DESNZ response reads: “We can confirm that, at the date of this request, no funding from the National Wealth Fund has been committed or spent on projects at Grangemouth.”
The Grangemouth refinery ceased processing crude oil in April last year, after announcing in September 2024 that the refining activities would cease.
Hundreds of staff were made redundant last year. STV reported that 65 staff out of 500 would be kept on as the Petroineos-owned site transitions into an import terminal.
The UK Government was repeatedly asked to intervene to stop the job losses going ahead.
A Scottish Labour source told The Scotsman: "The UK Labour Government is providing over £120m support package as part of £150m investment with INEOS to protect vital chemical production and 500 jobs at Grangemouth.
"John Swinney and the SNP knew about Grangemouth’s challenges and did nothing. It took a UK Labour Government to intervene after they sat on their hands for years.
“The SNP should stop with the platitudes and finger pointing, and get on with working to finally support Grangemouth."
A spokesperson for the DESNZ said: "The Prime Minister has been clear that he will reindustrialise Britain, and we are taking action to secure the long-term future of the Grangemouth industrial cluster.
"That is why the National Wealth Fund stands ready to invest £200m alongside £14.5m grant funding from last year’s Budget, which has already begun to be delivered.”
We told how the UK Government was told the closure of Grangemouth oil refinery has made Scotland “vulnerable” to supply shortages as the last shipment of jet fuel from the Middle East is to be received this week.
Petroineos said the site would transition to becoming an import terminal to “meet Scotland’s demand for transport fuels”.
The Grangemouth refinery produced 97% of Scotland’s aviation fuel before it closed.
The closure also hit the Scottish economy hard, figures showed.
