Scotland’s First Minister John Swinney will today warn that UK industrial support “cannot stop at the border”, urging the UK Government to develop a strategy that embraces the whole of the United Kingdom.
Speaking ahead of his address to the Scottish Trades Union Congress (STUC) Annual Congress in Dundee, Mr Swinney said Scotland must be seen as “open for business” and pledged that his government would do its utmost to encourage investment and support workers. However, he insisted that Westminster must also show a readiness to intervene to protect vital Scottish industrial sites, including the Grangemouth refinery, which is set to close later this year.
The First Minister is expected to say: “The current global uncertainty is unprecedented, and we are braced for further shifts in security and the economic global order. At a recent roundtable I hosted with business and trade union leaders, I welcomed the recognition that we need to adapt to the changing economic landscape.
“We must have an approach that shows Scotland is open for business. There are investment opportunities out there and we must realise them. We must ensure we have the highly qualified and skilled workforce needed to make Scotland an attractive place to invest – and investors need to know what we expect in terms of fair work and workers’ voice. My government will do its utmost to make that happen.
“At the same time, the UK Government must also play its part and develop an industrial strategy for the whole of the UK – one that recognises all that Scotland has to offer and agrees to invest in that. Put bluntly, UK industrial support cannot stop at the border.”
Earlier this month, Mr Swinney called for the Grangemouth refinery to be nationalised after UK ministers fast-tracked plans to nationalise the British Steel plant at Scunthorpe to safeguard its future.
Petroineos, the owners of Grangemouth, announced last year their intention to close the refinery, with recent figures confirming that 377 workers have accepted voluntary redundancy, and a further 28 facing compulsory redundancies.
Addressing the Congress, Mr Swinney is set to add: “Stepping in to save British Steel in Scunthorpe – an industrial site of national significance – is commendable. The Scottish Government is committed to securing a just transition for Grangemouth, with the workforce at its heart.
“So, if British Steel is to be nationalised to protect its future, there must equally be a willingness to intervene to secure the future of Grangemouth.
“We need the UK Government to take action to minimise the potential harms from the current volatile economic situation. This includes the removal of the self-imposed economic straitjacket of the Chancellor’s fiscal rules, working more closely with the EU and reversing the increase in employers’ national insurance contributions.
“And there must be a willingness to intervene to protect key Scottish industrial sites. My Government recognises the importance of doing so and we will be willing partners in acting to protect Scottish industry in tough times.”
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The future of Grangemouth has been under intense scrutiny following the publication of the Project Willow report last month, jointly funded by the Scottish and UK Governments. The report outlines several options for the site’s future but warns that approximately £3.5 billion of private investment would be required to realise these ambitions.
Responding to Mr Swinney’s comments, a UK Government spokesperson said: “Our modern Industrial Strategy will be designed and implemented in lockstep with the devolved governments as well as local and regional leaders to make sure it is a UK-wide effort.
“The Strategy will prioritise the high growth sectors most promising for future prosperity, creating the right conditions for increased investment and ensuring a lasting impact in communities across the UK.”
In February, Prime Minister Sir Keir Starmer pledged £200 million to help secure a new future for Grangemouth. This commitment is in addition to £100 million already announced jointly by the Scottish and UK Governments for investment in the local area.
