UNIONS have cautiously welcomed the government’s new pledge of £200 million for Grangemouth, but have warned it “must be the start, not the end” of the fight to save Scotland’s only oil refinery.

The Prime Minister made the announcement in his address to the closing session of this year’s Scottish Labour conference in Glasgow today.

On Friday, to mark the start of the conference, Unite led a picket demanding Westminster government intervention to save the 430 jobs expected to be lost if the site closes as scheduled in May.

Sir Keir said the cash would be found from the National Investment Fund and used to “develop viable proposals” for the site’s future, expected to be published as part of the Scottish and British governments’ Project Willow in the coming weeks.

Unite general secretary Sharon Graham said: “This is welcome news — after months of campaigning, supported by the community of Grangemouth, Keir Starmer and the UK government have finally listened.

“This needs to be the start, not the end, in delivering a real workers’ transition for Grangemouth.”

Scottish TUC general secretary Roz Foyer said the commitment “cannot be dismissed lightly,” but warned: “This funding will only have a transformative impact if it is used correctly and accompanied by even further investment from both governments.

“Ultimately, the announcement still neglects the clear plan set forward by Unite, which secures the jobs and the futures of the workforce in the here and now.

“This must be the priority from all governments, not retrospective action that assumes the sites’ closure is inevitable.

“We’ll continue to work with Unite the Union, the workers and their communities to provide a hopeful future that provides secure jobs and employment for all those impacted by the closure which, even at this stage, can be avoided.”

Addressing conference in a debate on Grangemouth’s future, held minutes after the Prime Minister left the platform, Alloa and Grangemouth MP Brian Leishman told delegates: “While today’s policies and commitments are vital, just as importantly they are a step in the right direction and must be delivered at breakneck speed.

“Time is absolutely of the essence to build Grangemouth for the future.”

Paying tribute to workers who, through their union, continue to fight for Grangemouth’s future “in the face of incredible stress,” he added: “They have been a credit to themselves, their families, their communities, and to the working class.”