INEOS Chemicals: Grangemouth

Debate between Chris McDonald and Douglas McAllister

Wednesday 17th December 2025 Commons Chamber

[Chris McDonald]

I very much welcome the hon. Member’s question because it gives me an opportunity to talk about risk appetite in investment, which I certainly am interested in—if other Members are not, I apologise in advance.

The National Wealth Fund is doing something special and different, but it is also worth looking at it alongside the other tools that the Government have: the British Business Bank and UK Export Finance. The hon. Member is right that the National Wealth Fund’s job is to crowd in, so it should not be at the easy end of the investment; otherwise, it would be crowding out. It has a target to produce a return on investment. Ultimately, the National Wealth Fund needs to take a portfolio approach that delivers that return. I know that in the past, industrial strategies in this country have suffered from casual approaches around things like “picking winners”—that sort of language is incredibly unhelpful. The point of taking a portfolio approach is that, of course, some businesses will succeed and some will not. Frankly, if every business the National Wealth Fund invests in succeeds, its risk appetite is in the wrong place. Some businesses will fail—we accept that; that is absolutely the point of the approach—but as a result of the National Wealth Fund’s investment partnering with industry in the commercial sector to de-risk projects, we will see some big successes, too.

[Douglas McAllister (West Dunbartonshire) (Lab)]

This is such welcome news for Grangemouth and Scotland just prior to Christmas. My thanks go to the Minister and all Departments that worked jointly to secure the deal. It is a pity that the SNP could not bring itself to mention the Grangemouth investment earlier today at PMQs—perhaps after decades of failure, the SNP cannot recognise success. Does the Minister agree that both the SNP and the Tories sat on their hands while the future of jobs at Grangemouth was at risk? Does he agree that today’s announcement demonstrates that Scotland needs a Scottish Labour Government in Holyrood to secure more good jobs?

[Chris McDonald]

My hon. Friend is correct that the Government’s decision here and their previous industrial strategy decisions have been in marked contrast to the decisions of the Scottish National party and the Conservatives previously.

There is something astonishing about this. I know that the Conservatives are hidebound by their free market ideology, which means that they are prepared to let British businesses and jobs go to the wall, but surely they should stand up for things like defence and national security, for which these businesses are so vital? They support our defence supply chains, as well as health and water. It should be natural for the Conservatives to stand up for things like that. The past inaction of the Conservatives and the SNP on this issue has been astonishing. The big message to the voters of Scotland is: vote Labour in the spring.