Rachel Reeves has faced calls to use £600 million of UK Government support for an Ineos project in Belgium as leverage to save jobs in Scotland.

Labour MP Brian Leishman said he had been informed that the Government does not plan to stop a commitment by the previous Conservative administration to provide a loan guarantee for a petrochemical plant in Antwerp.

But he pressed the Chancellor to explain why money could not also be found to protect jobs at Grangemouth.

Petroineos, which was established as a joint venture between PetroChina and Ineos, last year confirmed plans to shut its Grangemouth oil refinery in the second quarter of 2025, with the loss of around 400 jobs feared.

Mr Leishman, the MP for Alloa and Grangemouth, told Treasury questions in the Commons: “The previous Conservative government decided to back an Ineos project in Antwerp with a £600 million loan guarantee.

“I have spoken with the current Secretary of State and Government minister about this and have been told that the Government has no plans to stop this money even though Ineos plans to close the Grangemouth refinery and thousands of jobs will be lost.

“Why is there £600 million for Antwerp and not Grangemouth? And why would the Government allow this to happen and not use the £600 million as leverage with Ineos in order to avoid Scottish job losses?”

Ms Reeves replied: “This Government can’t account for decisions made by the party opposite, but we have created an Office for Value for Money to make sure we always get value for money when we use taxpayers’ money.”

Mr Leishman could be seen shaking his head in response to the Chancellor’s answer.

Petroineos has previously said it is too late to convert the loss-making site, which will transition to being an import terminal for finished fuels, to another type of product.