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Stellantis Luton
27 November 2024
Lead MP
Jonathan Reynolds
Debate Type
Ministerial Statement
Tags
Economy
Other Contributors: 27
At a Glance
Jonathan Reynolds raised concerns about stellantis luton in the House of Commons. A government minister responded. Other MPs also contributed.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Government Statement
Yesterday, Jonathan Reynolds announced that Stellantis had decided to consolidate its manufacturing operations, leading to the closure of the Luton plant. The minister stated that the Government has been involved in intense negotiations with Stellantis since July but was ultimately unable to prevent this commercial decision due to challenges faced by car manufacturers globally. He highlighted that despite the closure, Stellantis will invest £50 million at its Ellesmere Port plant and consolidate production there. Reynolds emphasised the importance of supporting automotive companies as they transition to electric vehicles (EVs) and mentioned a commitment to ending new sales of pure petrol and diesel cars by 2030. The Government has also committed £2 billion for research and development in EV manufacturing and supply chains, with an aim to foster long-term growth and investment.
John Howell
Con
Henley
Question
What is the minister doing to support the workers affected by this decision, and will he be meeting with Stellantis again?
Minister reply
The Government stands ready to help anyone affected by redundancy through a rapid response service offered by the Department for Work and Pensions. The minister confirmed that ongoing discussions with Stellantis are planned to address worker relocation options and support impacted employees.
Paul Maynard
Lib Dem
Blackpool North and Cleveleys
Question
Given that the UK’s ZEV mandate is more stringent than those of other European countries, how does the minister justify this policy?
Minister reply
The Government aims to be pragmatic in addressing industry concerns while ensuring a transition to zero emission vehicles. The minister stated that further consultations will engage with industry feedback on the previous Government's ZEV mandate and its flexibilities.
Andrew Griffith
Con
Arundel and South Downs
Question
Asked the Secretary of State about the timing and consequences of the closure, highlighting the economic impacts of Labour's policies on industry and employment. Criticised the Government for reversing previous changes to vehicle mandates.
Minister reply
The minister accused the MP of dishonesty but did not directly address the questions.
Liam Byrne
Lab
Birmingham Hodge Hill
Question
Welcomed the review and asked for an investigation into Chinese EV makers to ensure a level playing field. Also questioned the Government's stance on subsidies and international trade impacts.
Minister reply
The minister acknowledged the issues with inherited policies, emphasising the need for decarbonisation without deindustrialisation. He noted that industry applications would be followed up if made.
Clive Jones
Lib Dem
Wokingham
Question
Expressed concern over the closure's impact and urged immediate action to mitigate the shock for the area, questioning when consultations will start.
Minister reply
The minister apologised for the situation and stated that consultations would be fast-tracked. He also mentioned existing policies for electric vehicle infrastructure and research funding.
Rachel Hopkins
Lab
Luton South and South Bedfordshire
Question
Closing the Luton site will damage our local economy, with 600 more jobs at risk in the supply chain. Will his announcement today move the dial in discussions with Stellantis to help protect the Luton site?
Minister reply
I am extremely grateful for her question and I promise to visit the site alongside her. My Department will provide whatever help is required, engaging closely with the union and constituents to ensure the package presented to the workforce benefits them.
Blake Stephenson
Con
Mid Bedfordshire
Question
What support will be offered to people losing their jobs due to Stellantis's decision?
Minister reply
This Government has not undermined job prospects with our policies. The workers are skilled and talented, and they will find new opportunities.
Sarah Owen
Lab
Luton North
Question
What support will be offered to Vauxhall workers losing their jobs and the town as a whole?
Minister reply
We have done everything we can to avoid this decision. The Government is offering available support, but Luton’s economic strength lies in its diverse sectors like engineering, aerospace, air travel, and creative industries.
John Cooper
Con
Dumfries and Galloway
Question
Did Stellantis raise concerns about the ZEV mandate fines?
Minister reply
Yes, they did. We understand their concerns and are willing to consult on how this policy works pragmatically without undermining our destination.
Matt Western
Lab
Warwick and Leamington
Question
Was plant and platform rationalisation a factor in the decision? Was consumer uncertainty introduced by the previous Government’s policies?
Minister reply
My hon. Friend is right about the industry wanting certainty, but automotive manufacturers faced challenges meeting ZEV mandate goals that were more stringent than those in Europe.
Julian Lewis
Con
New Forest East
Question
If all British car manufacturers could not meet the 2030 goal, would the Government persevere with it as an immovable target?
Minister reply
We listen to industry needs and understand pressures. The destination remains 2030 but we will balance short-term pressures while maintaining export market competitiveness.
Antonia Bance
Lab
Tipton and Wednesbury
Question
Can we be positive about the future of the automotive industry in this country?
Minister reply
We support the transition, excited by British manufacturers such as Jaguar Land Rover, Nissan, Toyota, McLaren, and Rolls-Royce. They endorse our policy changes.
Wera Hobhouse
Lib Dem
Bath
Question
The Electric Vehicle Association says that 14 non-governmental organisations, think-tanks and campaign groups are advocating for upholding the ZEV mandate. We have just seen the most devastating storms, which have been dangerously accelerated by climate change. I know that the Government know that net zero is not negotiable. The previous Government persistently undermined the motor manufacturing industry. Will this Government listen to the Electric Vehicle Association, which, after all, is supporting this Government in their ambition to get to net zero?
Minister reply
I genuinely appreciate the question coming from that perspective, but this is not just about NGOs. We have been in close contact with big business about charging infrastructure, and I understand the importance of that. I want to make it clear that that is why we are not undermining transition, but are ambitious with the industry about where we will get to. Nothing we propose as a Government will itself reduce or limit the deployment of electric vehicles. What I am talking about, and what we are talking about as a Government, is looking at how, for instance, the flexibilities in the system operate. We are doing everything we can, alongside industry, to get to that destination.
Bill Esterson
Lab
Sefton Central
Question
The previous Government were warned before the election, including multiple times in this Chamber, about the damage they were doing to the car industry. The constant changes of policy on net zero, missing targets on the roll-out of charge points and the failure to even allocate the rapid charging fund have all undermined consumer confidence. Will my right hon. Friend make sure that, as soon as possible after his review, he balances the needs of manufacturers of cars and vans with the needs of consumers?
Minister reply
I believe my hon. Friend’s analysis is absolutely right, and he and I were in the Chamber on several occasions when that case was made to the previous Government. The intervention from the former Prime Minister was not based on any kind of business or economic logic, but was an attempt to create some sort of wedge issue before the election. Frankly, that did them absolutely no good, because people saw straight through it.
Jerome Mayhew
Con
Broadland and Fakenham
Question
The Secretary of State said in his statement that, at the time of the election, Stellantis was minded to close the plant. However, since the election we have had the Budget, which has imposed £25 billion of increased taxes on business, and the Employment Rights Bill, which will also increase costs on business enormously. Both have led directly to a collapse in business confidence. Does the Secretary of State think that those decisions helped Stellantis to stay or go?
Minister reply
I can tell the hon. Member categorically that those decisions had no impact whatsoever. This is the crucial point. I hear Conservative Members say this, but do they have any idea about employment conditions in the automotive sector? Those conditions are well above the floor that the Employment Rights Bill will raise them to in the United Kingdom. They should get out and talk to industry and have such conversations—please.
Paula Barker
Lab
Liverpool Wavertree
Question
I refer the House to my entry in the Register of Members’ Financial Interests.
I am sure the whole House will want to join me in paying tribute to my good friend, my hon. Friend the Member for Luton South and South Bedfordshire (Rachel Hopkins), who is a fierce champion for her constituents. Does the Secretary of State agree that the news yesterday only highlights further the urgent need for a UK industrial strategy, and demonstrates the challenges that UK industry faced under the last Government without such a strategy in place?
Minister reply
I absolutely echo my hon. Friend’s sentiments about my hon. Friend the Member for Luton South and South Bedfordshire, and I very much agree with her statement about a UK industrial strategy. There have been and are policies relevant to the automotive sector, but what we have lacked for a long time, across a range of key sectors in the UK, are confidence and certainty that those plans will remain.
Mark Francois
Con
Rayleigh and Wickford
Question
I commiserate with the workers in Luton who will lose their jobs. If Vauxhall is synonymous with Luton, Ford is synonymous with Essex. The Secretary of State referred to 800 Ford job losses, including at its research centre at Dunton, where many of my Rayleigh and Wickford constituents work.
On electric vehicles specifically, I am a free trader by instinct, but what China is doing in that area is way beyond normal competitive practice. It is dumping electric vehicles very cheaply on world markets, a point highlighted by the Chairman of the Select Committee, the right hon. Member for Birmingham Hodge Hill and Solihull North (Liam Byrne). What specifically do the Government intend to do about that to maintain fair competition and give British companies, including Ford and Vauxhall, a fair chance to compete?
Minister reply
First, let me reiterate my words about the right hon. Member’s constituents and the situation at Ford. I have faced this accusation before, but if anyone thinks the Government are somehow only listening to one part of industry or are responding to special pleading, the announcement by Ford followed by what we have had from Stellantis this week is proof that we do need to move, to listen and to look at some of the policies we inherited and make sure they are working as they should.
Chris Hinchliff
Lab
North East Hertfordshire
Question
Many of my constituents will be impacted by this deeply worrying announcement, so can the Secretary of State confirm what discussions he is having with trade unions on this specific subject and what plans he has to mitigate the job losses for residents of North East Hertfordshire?
Minister reply
Again, I recognise the situation facing my hon. Friend’s constituents, and there will be support on offer from the Government. He asks specifically about conversations with trade unions. I can confirm that I had several conversations just yesterday—for instance, with Sharon Graham, the general secretary of Unite—to ensure that what the Government are doing and what is being negotiated by the recognised union on behalf of the workforce are consistent.
Richard Tice
Reform
Boston and Skegness
Question
Let us be honest: these job losses are a direct result of net zero and the previous Government’s electric vehicle targets. Is the Secretary of State aware that car manufacturers across Europe are losing fortunes on EV production? They are trying to delay targets, and what we are witnessing is just the beginning of the slow, agonising, painful and tragic destruction of hundreds of thousands of direct and indirect jobs in the UK automotive industry.
Minister reply
I certainly agree that we should be honest, and the hon. Gentleman’s characterisation of the UK automotive sector is simply not correct. All I ask him to do is this: do not listen to the Government or even the Opposition, but go and speak to the industry and the firms involved. He should ask them about their investment plans, and find out why he is so out of touch with industry sentiment.
John Slinger
Lab
Rugby
Question
Does my right hon. Friend agree that unlike the Conservative party, this Labour Government do not regard the words “industrial strategy” as anathema? Does he agree that UK industry in general, and the automotive sector specifically, suffered under the previous Government due to their laissez-faire stand-aside approach?
Minister reply
I very much believe that industrial strategy is essential to the future of the United Kingdom. I hoped that this would be supported on a cross-party basis and have been willing to show pragmatism and change some inherited policies to ensure they work for British industry.
Bob Blackman
Con
Harrow East
Question
It is clearly a sad day for Luton and workers there, but the Secretary of State must remember that this is not just about Luton but about the whole car manufacturing industry. Will the Secretary of State set out his position on conversations that he is having with other car manufacturers to ensure that the same thing does not happen to them?
Minister reply
We have been in discussions with all major UK-based original equipment manufacturers and representatives of the sector to talk about flexibilities required to make our policies work without undermining British industry.
Tessa Munt
Lib Dem
Wells and Mendip Hills
Question
Success in the transition to electrical vehicles is vital for the west country and Somerset, with the new Agratas battery plant coming to Somerset. Will the Secretary of State please act to support consumers and consumer confidence by restoring the plug-in grant?
Minister reply
I assure the hon. Member that I will do everything I can to bolster consumer confidence. While I cannot make an announcement on the plug-in grant as it is not covered by my Department, I confirm that across the Government we are united in wanting to make the transition a success and willing to listen to industry about necessary policies.
Richard Holden
Con
Basildon and Billericay
Question
In his statement, the Secretary of State mentioned job losses at Ford in Dunton. I welcome the fast track review he is putting forward. Will the Secretary of State comment on potential Chinese electric car dumping in the UK? Concerns have been raised about vehicle excise duty increases affecting demand for such vehicles in the UK.
Minister reply
Vehicle excise duty is a question for the Treasury and Chancellor, but the differential between internal combustion engines and electric vehicles is part of the system's demand incentives. The Government should do everything they can to support industry during the transition.
Saqib Bhatti
Con
Meriden and Solihull East
Question
The Secretary of State was robust in his criticism of the previous Government's approach to the zero emission vehicle mandate, but was he one of the 141 Labour MPs who voted for the ZEV mandate?
Minister reply
We worked constructively on the ZEV mandate that the previous Conservative Government put forward. I believe in incentives towards the transition and see no reason why people cannot pragmatically get on board and support it.
Lisa Smart
Lib Dem
Hazel Grove
Question
One thing stopping some constituents from transitioning to electric vehicles is a lack of access to charging points. What more can the Government do to ensure that everyone can access charging points to make the transition to EVs?
Minister reply
There are about 70,000 public EV chargers in the United Kingdom and there is not always equity across different parts of the country. The Department for Transport is interested in ensuring equity of those around the country.
Jim Shannon
DUP
Strangford
Question
I thank the Secretary of State for his statement, and in particular for his honesty. With the cost of living crisis that our constituents are struggling through, how can the Government make electric cars affordable?
Minister reply
To bring down the cost, it is about co-investing with industry in efficient production forms. We need now to bring down not just the cost of charging infrastructure but the unit cost by investment in efficient production and scale production.
Shadow Comment
Andrew Griffith
Shadow Comment
Andrew Griffith criticised the Labour government's policies on zero emission vehicles as unworkable for industry. He argued that these policies have led directly to job losses at the Luton plant, highlighting a report from the Society of Motor Manufacturers and Traders which stated that UK targets are particularly acute with an accelerated timeline and unsustainable business costs. Griffith urged the Government to acknowledge their mistake, meet with businesses, and consider suspending or amending the zero emission vehicle mandate (ZEV) deadline. He also criticised recent tax rises and proposed employment legislation as attacks on British business.
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