Mr Keir Starmer was accused of “industrial vandalism” when the Labor Party confirmed it would not reach a bailout deal to nationalize the Grangemouth oil refinery.
Ahead of the Prime Minister's major UK investment summit on Monday, his energy department has finally admitted that calls for the UK Government to acquire Scotland's only refinery – even if only on a temporary basis – was not being considered.
Desperate union bosses, workers and activists for weeks pleaded with UK ministers to take a stake in the oil refinery to keep it running, amid fears that its closure could threaten the country's energy security and deindustrialise the local area.
However, in a devastating hammer blow to thousands of Scottish workers, a member of the energy department said: 'The company [Petroineos] they were very clear that there was no viable commercial future for operating the refinery.
'It would not be right for the Government to underwrite a business that does not have a viable commercial future.'
Grangemouth owner Petroineos announced it would close the facility in the second financial quarter of 2025
And an official Department of Energy and Net Zero spokesperson said: 'We have never received any proposals regarding the nationalization of Grangemouth and there are no ongoing discussions about this.
“We are focused on finding a viable clean energy future for Grangemouth and have provided £100m of funding, alongside the Scottish Government, to help the workforce find good, alternative jobs and invest in the community.”
Grangemouth's current owner, Petroineos, announced it would close the facility in the second financial quarter of 2025, with the loss of 400 jobs last month – to the fury of the local community.
Thousands of other ancillary workers will also be affected by the closure, according to a report by PriceWaterhouseCooper carried out on behalf of Scottish Enterprise.
Despite pressure from unions and activists for the UK government to take a stake in the factory, the Mail on Sunday was told that this is “not something the government is considering” and that it is “not on the table ”.
Last night, local Labor MP Brian Leishman said the recently revealed position filled him with “despair” and called on Sir Keir to “learn from what happened to miners in the 1980s”, referring to the closure of mines by Margaret Thatcher.
Sir Keir Starmer will not intervene to save Grangemouth refinery despite calls from local Labor MP Brian Leishman
Unite general secretary Sharon Graham said: 'What is happening in Grangemouth is an act of industrial vandalism. Unite will not allow Scotland's only refinery to be shut down with the loss of hundreds of jobs.
'No matter the color of a party's rosette, Unite will always hold the government fiercely to account when it gets it wrong and puts jobs at risk,' adding: 'We need public investment to come with public participation that guarantees jobs and a long-term commitment .'
In September, the site's current owners, Petroineos, a joint venture between Asia's biggest oil and gas producer, PetroChina, and Ineos – the chemical company founded by Manchester United's billionaire co-owner Sir Jim Ratcliffe – blamed the global competition and falling demand for fossil fuels, as they announced their imminent closure next year.
It has raised serious concerns due to a series of job losses at the site, which produces large quantities of petrol, diesel, heating oil and jet fuel for the UK.
In response, Labor and SNP Ministers hastily added £20 million to an existing £80 million growth fund for the Falkirk local area.
They also spoke about Project Willow, a joint government investment scheme that would examine ways of creating a new, long-term industry at the site, primarily focused on green renewable energy storage.
However, the unions fought back and insisted that the oil refinery must be saved.
Speaking at the Unite Union conference in Dundee, general secretary Sharon Graham said Energy and Net Zero Secretary Ed Miliband and Prime Minister Sir Keir Starmer were “warned”.
She said: 'The government must make the necessary investments to safeguard its future. Workers must be forced to act.'
Campaign group Keep Grangemouth Working also criticized PetroIneos' decision to close the site and called on the UK and Scottish governments to act to save jobs.
Last week, local MP Brian Leishman tabled an early House of Commons motion calling on the UK government to buy a so-called “transitional interest” in Grangemouth.
This would see the UK government take control of the plant as early as next year, until a “viable” green energy alternative is found for the plant.
It was signed by a dozen MPs, including Labor peers Euan Stainbank and Diane Abbott, and was supported by activists.
In an article for this newspaper published today, Mr Leishman suggested that he had held “initial discussions” with UK ministers about his plans.
Labor MP Brian Leishman has called on the UK government to buy a so-called 'transitional interest' in Grangemouth
However, a UK government source said such proposals were not being considered.
They stated that nationalization – temporary or total – was not being discussed by ministers or policymakers.
As well as threatening a Labor civil war, the government's recently revealed stance could cast a long shadow over Sir Keir Starmer's big UK Investment Summit tomorrow, during which his Scotland Cabinet will praise the newly launched industrial strategy of the government.
It's yet another bombshell ahead of Monday's big event aimed at showcasing Britain's attractions to international business, after a £1bn deal was apparently scrapped after Sir Keir's ministers criticized P&O Ferries.
Ports and logistics giant DP World, the parent company of P&O Ferries, has reportedly made a major announcement about its London Gateway container port after a press release from Angela Rayner and Transport Secretary Louise Haigh described P&O Ferries' move in relation to seafarers as 'outrageous' and a 'national scandal'.
Discussions over the future of Grangemouth have also involved claims that there is a serious potential buyer who could step in to keep the refinery running.
North American oil giant Hudson Reid Holdings Inc., led by Canadian businessman Garth Reid, would be interested in the site.
Stacey Oil Services – an equipment company based in Portlethen, near Aberdeen – is also said to be working on a possible deal, but Petroineos says it has not received any “credible” proposals for the installation.
