House of Commons · Urgent Question
24 February 2025 · 11 other contributors
Opened by Greg Smith Con Mid Buckinghamshire
Summarised by AI from the official record, so it can contain mistakes.
Greg Smith raised concerns about plant oxford site 2025-02-24 in the House of Commons. A government minister responded. Other MPs also contributed.
Key points
MPs spoke in turn to share their views and ask questions. Here's what each person said.
Opened the debate
Will the Minister confirm that the Government will take immediate action to address BMW's decision to delay production of two new electric Mini models at its Oxford plant, which has significant implications for job security and investment in Plant Oxford?
Question
The negative impacts of Labour’s rigid approach to net zero have become clear: BMW hitting the brakes on a £600 million investment in Plant Oxford. This deal would have secured 4,000 high-quality jobs and was a strong vote of confidence in the UK. Will the Minister do the right thing: stop hiding behind consultations and acknowledge that the Government’s ideological approach to net zero will lead only to economic disaster for our automotive sector and consumers alike?
Minister reply
The puritanical ZEV obsession was, as the hon. Gentleman knows, a Conservative policy from the last Government. The only changes made to that policy under the last Prime Minister dampened demand by changing the deadline and hampered manufacturers. By contrast, Labour and the Government are acting with pragmatism, listening to industry and working at pace to get this right.
Question
Will the Minister update the House on progress on the industrial strategy for the automotive industry? How will that support supply chains in places like Dudley and across the west midlands?
Minister reply
We are working at pace on delivering the industrial strategy in the spring. There are 150,000 good jobs in the automotive industry, and we want to see those jobs grow. We have identified eight growth sectors that the industrial strategy will turbocharge. Advanced manufacturing is one of them, and that includes the auto industry. We have £2 billion of investment committed at the Budget to underpin this.
Question
This is yet another failure in the Government’s main aim of getting Britain growing again. Zero-emission vehicles are too expensive and, it appears, too hard to manufacture in the UK. That forces us into an unfortunate reality in which we are reliant on Elon Musk for our supply of EVs. What measures will the Government take to support and encourage consumer demand for electric vehicles?
Minister reply
The hon. Gentleman talks about the Government’s policies for growing the economy. We held an international investment summit at which £63 billion of investment was announced, including £2 billion for the automotive industry in the Budget.
Question
The Minister has set out how we delivered £2 billion-worth of support for the automotive sector in the Budget. That support is both for manufacturing and for the crucial supply chains in places such as my Black Country constituency and Oxford. Is she able to set out any further details about how that money will be used to support our brilliant manufacturing?
Minister reply
Through the £2 billion funding, the automotive transformation fund, the exceptional regional growth fund and the advanced propulsion centre research and development fund, we have found innovative ways of supporting the industry. In January, I was pleased to hear Jatco announce that it would put its first manufacturing plant in Europe here in the UK; it is converting an old hospital building with a £50 million investment.
Question
Jaguar Land Rover, which has its engine manufacturing centre based in Staffordshire, is a vital employer for people not just in Staffordshire, but right across the west midlands. That plant is pioneering the development of electric vehicles for JLR. What additional support and flexibility will there be from the Government to ensure that Great British brands continue to prosper in the west midlands?
Minister reply
We are supporting the development of gigafactories in the UK, helping with R&D and innovation to make our cars more sophisticated and efficient, and supporting large manufacturers to ensure the conditions are right for them to develop in the UK. We work closely with the Automotive Council.
Question
For the last 20 years, 50% of new vehicle sales have been fleet and business sales. Does the Minister agree that the decision taken today is a commercial decision, based around the structure of BMW’s dealer network, as opposed to an obsession with petrol and diesel vehicles?
Minister reply
My hon. Friend is absolutely right to say that this is a commercial decision. As he would expect, we are talking to representatives of BMW; my officials were with them in Munich a couple of weeks ago, and I have met the UK managing director several times.
Question
Tata’s Llanwern steelworks produces world-class automotive steel. Will the Minister acknowledge the importance of having a strong steel industry and plants like Llanwern making steel for electric vehicles?
Minister reply
I am glad my hon. Friend has managed to bring steel into the debate, as it is incredibly important. We will have a separate steel strategy on top of our work in the industrial strategy to ensure a thriving sector in the future, looking at issues such as transition, energy prices, access to finance, and grid connections.
Question
Does the Minister not follow the logic that punishing people for not wanting cars produced here will result in investment losses? When will this Government conclude that net zero policies are wrong?
Minister reply
I do not know if the right hon. Gentleman saw that the CBI brought out figures showing a 10% growth in the net zero economy last year, which is significantly more than the overall economic growth. We are transitioning to electric vehicles pragmatically and consulting industry on flexibilities within this transition.
Question
Does the Minister agree that the automotive industry in the UK will continue to decline until we scrap net zero policies?
Minister reply
The hon. Gentleman tells us that net zero is a massive con, yet he owns a company investing in electric car charging ports. I rest my case.
Question
What can the Minister do to help companies attract more investment through lower energy costs and ensure that firms relocating jobs understand no future help will be forthcoming?
Minister reply
Lots must be done in terms of energy prices. Building a gigafactory means significant reductions in energy prices, but we are talking virtually every day with the wider manufacturing sector about these issues. We hope to deliver a thriving automotive industry well into the future through reforms and spending £2 billion allocated in the Budget.
Government Response
This Government are determined to see a strong, thriving UK automotive industry. We recognise the vital role that the British motor industry plays within our manufacturing landscape, employing more than 150,000 people, with tens of thousands more working in the wider supply chain. That is why we are ploughing £2 billion into the sector’s green transition and £300 million to encourage the uptake of new, clean, green electric vehicles—a big incentive for the global automotive sector to invest in the UK. BMW has taken a commercial decision to delay the production of two new electric Mini models at its Oxford plant. Undoubtedly, that news will be unsettling for the company’s many hard-working employees, but I must stress that BMW remains committed to its investment in the UK. We are proud that BMW considers Oxford to be at the heart of Mini production. As a Government, we are throwing our weight behind its investment. We want big automotive brands from Britain and around the world to lie at the heart of our growth mission and plan for change, creating well-paid jobs and putting more money into people’s pockets. As part of that effort, this Government are working closely with BMW as it reviews its investment timelines, ensuring that more cars are built right here in the United Kingdom.