The Prime Minister has said his Government is not “sleepwalking” into potential “industrial devastation” over the closure of the Grangemouth refinery.

Owner Petroineos announced last week the refinery would close in the second quarter of next year with the loss of up to 400 jobs, as it struggled with mammoth losses of up to 500,000 US dollars (£377,000) per day.

On Thursday, Labour MP Brian Leishman – who represents Alloa and Grangemouth – told STV News the refinery should be nationalised, as he accused both the UK and Scottish governments of “sleepwalking” on the issue.

“They’ve been complicit in handholding with Petroineos, and they’ve meekly accepted the narrative that the refinery, one, isn’t profitable, and two, has to close,” he said.

“No-one is under any illusion that the refinery can’t and won’t last forever.

“However, what we are facing is industrial devastation on an incredible scale.”

But in a pre-Labour Party conference interview with the same broadcaster, Sir Keir Starmer rejected the accusation.

“I don’t accept that,” he said.

“We are absolutely focused on the transition we need to clean power by 2030.

“Scotland plays a huge part in that.

“That’s the case we made in the election.

Sir Keir Starmer
The Prime Minister was speaking before the Labour Party conference which begins on Sunday (Justin Tallis/PA)

“We’ve got those Scottish MPs now and I intend to deliver on the promises that we made in terms of the economy, in terms of the next stage towards transition and to make sure that the good jobs of the future are in Scotland.

“Hence GB Energy being headquartered in Scotland is a sort of statement of intent, if you like.”

The Prime Minister did concede the closure of the refinery was a “cause for concern”, but added that the £10 million investment from his Government to the area was “the right deal for the local community”.

In a separate interview with BBC Scotland, Sir Keir would not be drawn on the UK Government taking a more direct ownership role in Grangemouth.