Falkirk Council urges immediate government action to support Grangemouth's economic future
The Leader of Falkirk Council has called for urgent action from the Scottish and UK governments to help Grangemouth's economy in order to protect current jobs and businesses across the area.
In a letter to First Minister John Swinney and to Prime Minister, Sir Keir Starmer, Councillor Cecil Meiklejohn has expressed her concern about the impact recent closures in the Grangemouth area will have on the local economy, and what practical steps can be taken to support the local community and businesses.
Several major companies have recently announced closures, including Petroineos, which is set to shut down Scotland's only oil refinery in 2025, with the loss of around 400 jobs, as well as Fujifilm and Versalis also making similar announcements.
She said:
Grangemouth plays a vital role in Scotland’s economy, not just for our local area but for the entire country. The recent closures and economic challenges we are facing are deeply concerning.
“Both the Scottish and UK governments must step up to protect the future of Grangemouth and ensure the continued stability of its industries. These closures have already caused significant job losses and threaten the livelihoods of hundreds more. Immediate action is essential to prevent further damage to the local economy and to help businesses survive the current crisis.
“We need to see a clear, urgent response from both governments, showing they are fully committed to supporting Grangemouth’s workers, its businesses, and its long-term future."
“While we welcome long-term plans, such as the £25 million Grangemouth Just Transition Fund announced by the Scottish Government, Grangemouth needs action now otherwise we may be facing terrible consequences for our area.
“We appreciate that future investment will potentially follow from the Growth Deal, Forth Green Freeport, Project Willow and Acorn, but this is in the medium to long-term and what we need is immediate action.
“We believe that this funding is too far in the future to help businesses that are already struggling. We agree that asking the UK Government to match the Scottish Government’s funding commitment for 2025/26 would show strong immediate support for Grangemouth and its industries.
In addition, Cllr Meiklejohn has suggested that the Grangemouth Future Industries Board, which was set up to address the area’s future industrial opportunities, should be restructured to focus on the current challenges facing businesses.
Cllr Meiklejohn added:
I want to meet face to face with our Government leaders to stress how massive an impact Grangemouth plays in the Scottish and UK economies and that, as it transforms, it still has so much to give both the local community as well as further afield.
Background to Grangemouth
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Grangemouth is one of the most important industrial areas in Scotland. In 2023, the Grangemouth Industrial Cluster contributed £895 million to Scotland's economy. The industrial cluster also directly employs around 3,250 people, many of whom live in Falkirk.
Grangemouth port is Scotland’s largest, handling 9 million tonnes of cargo every year, which represents 30% of Scotland’s GDP.