What's happened
The UK government has announced over £120 million in support to save the Ineos ethylene plant at Grangemouth, securing 500 jobs. The deal includes safeguards and profit-sharing agreements, amid political debate over energy policies and industrial strategy.
What's behind the headline?
The UK government's intervention at Grangemouth signals a strategic shift towards safeguarding key industrial assets amid ongoing economic and political pressures. The support, totaling over £150 million, is framed as a commitment to 'good jobs' and 'modern economy,' but it also highlights tensions over energy policies and fiscal regimes.
The deal's emphasis on safeguards and profit-sharing suggests a desire to balance taxpayer protection with industrial revival. However, critics argue that the support underscores deeper issues: the UK's energy costs remain high, and policies like carbon taxes are seen as detrimental to competitiveness.
The contrasting treatment of Grangemouth and Mossmorran reveals differing corporate and governmental approaches. While Ineos demonstrates confidence in its future, ExxonMobil's plant faces closure due to lack of investment and profitability, illustrating the challenges of maintaining older facilities in a changing energy landscape.
This intervention is likely to set a precedent for future industrial support, but it also raises questions about long-term sustainability and the role of government in industrial strategy. The next steps will determine whether this is a one-off rescue or part of a broader industrial policy shift that could reshape the UK's manufacturing landscape.
What the papers say
The Scotsman reports that Sir Jim Ratcliffe welcomed the support, emphasizing its role in protecting jobs and supporting UK manufacturing, while Labour figures criticize the timing and scope of government intervention. The Independent highlights the strategic importance of the plant and the investment's role in securing 500 jobs, with officials stressing safeguards and profit-sharing. Meanwhile, contrasting comments from ExxonMobil's closure plans and government explanations reveal differing corporate and political perspectives. The debate underscores ongoing tensions over energy policy, industrial support, and regional economic resilience, with some critics questioning whether the support is sufficient or timely enough to reverse decades of decline.
How we got here
The support package follows years of industrial decline at Grangemouth, including the closure of the oil refinery earlier this year. The UK government aims to preserve strategic chemical production and protect jobs, amid broader concerns over energy costs and industry competitiveness. The deal is part of a wider effort to bolster UK manufacturing and regional economic stability.
Go deeper
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Sir James Arthur Ratcliffe is a Monaco-based British billionaire chemical engineer turned financier and industrialist. Ratcliffe is the chairman and chief executive officer of the Ineos chemicals group, which he founded in 1998 and of which he still owns
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Douglas Garven Alexander is a Labour politician who served as Member of Parliament for Paisley and Renfrewshire South, previously Paisley South, from 1997 until his defeat in 2015.
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Ineos Group Limited is a British multinational conglomerate headquartered and registered in London. As of 2025, it was the ninth largest chemical company in the world, with additional operations in fuel, packaging and food, construction, automotive, pharm
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Gillian Anne Martin is a Scottish politician serving as the Member of the Scottish Parliament for the Aberdeenshire East since 2016.
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Peter Kyle is a British Labour Party politician serving as the Member of Parliament for Hove since 2015, and the Shadow Minister for Schools since 2021.
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Rachel Jane Reeves is a British Labour Party politician serving as Shadow Chancellor of the Duchy of Lancaster and Shadow Minister for the Cabinet Office since 2020. She has been the Member of Parliament for Leeds West since 2010.
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Sir Keir Rodney Starmer KCB QC MP is a British politician and former lawyer who has served as Leader of the Labour Party and Leader of the Opposition since 2020. He has been Member of Parliament for Holborn and St Pancras since 2015.