Support for UK industry ‘cannot stop at the border’ – Swinney

Scotland’s First Minister John Swinney will warn that UK industrial support “cannot stop at the border” as he calls for a strategy for the whole of the UK.

Mr Swinney said there must be an approach showing that Scotland is “open for business” and that his government will do its utmost to make that happen.

However, he said the UK Government must also play its part and show a willingness to intervene to protect key Scottish industrial sites such as the Grangemouth refinery which is due to close this year.

Mr Swinney will discuss the issues when he addresses the Scottish Trades Union Congress (STUC) Annual Congress in Dundee on Monday.

He 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 site at Scunthorpe to keep it open.

Owners Petroineos last year announced plans to close the Grangemouth refinery and it was confirmed in recent weeks that 377 workers have accepted voluntary redundancy, with a further 28 compulsory redundancies.

The First Minister will tell the congress: “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 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.”

The Project Willow report – which was funded by the Scottish and UK governments – was published last month and set out a number of options for the future of the Grangemouth site.

However, it said that around £3.5 billion of private investment would be needed.

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 announced £200 million to help secure a new future for the Grangemouth.

The money comes on top of £100 million from the Scottish and UK governments for the local area.