Tories: Luton Vauxhall plant closure is ‘downpayment’ for further job losses

Business Secretary Jonathan Reynolds blamed the previous government for the 1,100 jobs at risk, claiming “it was too late after 14 years of failure to be able to put this right”.

In a statement to the Commons, Mr Reynolds said it “was a dark day for Luton” and the Government had “done everything we possibly can” to prevent the closure.

Mr Reynolds also announced that the Government is “fast-tracking” a consultation on ending the sales of new petrol and diesel cars by 2030.

On Wednesday, Mr Griffiths told MPs: “The closure of the Luton plant, I fear, is just a downpayment on jobs that will be lost under this Government’s relentless attacks on industry, its neglect of the realities of business, and its failure to meet its promise not to raise taxes.

“The Government owes it to the plant’s workers to at least be honest – this decision is the direct result of a Government policy that is simply unworkable for industry. Stellantis told us as much when they said that this decision was made in the context of the zero emissions mandate.”

He added: “The Government’s policy on zero emission vehicles is a jobs killer. They say they have been talking since July, so why, today, this panicked U-turn when it’s already too late?

“Under the last government, we acknowledged that the previous vehicle mandate was too stringent. We took the decision to push this back, recognising the impact that it would have on industry.”

Mr Reynolds replied: “That is the single most dishonest statement I’ve ever heard.

“The simple truth was that it was too late, after 14 years of failure, to be able to put this right. So I just have to say to him, with all politeness, he is out of touch with industry, he is out of touch with workers, he’s even out of touch with what the previous Conservative government did.”

Earlier in his statement, Mr Reynolds had said: “We have done everything we possibly can to prevent this closure from happening. The Secretary of State for Transport and I met Stellantis many times over the summer and again on Tuesday morning to discuss the situation and the acute pressures the company is facing.

“We have worked hard to find a solution that would support the business and ensure people kept their jobs, and we confirmed in writing we were willing to consider any solution put forward. However, despite our best efforts, we have been forced to accept that this is ultimately a commercial decision by Stellantis as they respond to wider challenges within the sector.”

Announcing the consultation, he said: “We will be shortly fast-tracking a consultation on our manifesto commitment to end the sales of new purely petrol and diesel cars by 2030, but we will use that consultation to engage with industry on the previous government’s ZEV transition mandate and the flexibilities contained within it, and we will welcome on board their feedback as we move forwards.

“We want to do everything we can, together with industry, to secure further investment into the British automotive sector now and over the long term.”

The ZEV mandate requires major car manufacturers to have zero-emission – in effect purely electric – vehicles making up 22% of their sales fleet this year, increasing to 28% in 2025 and rising further in subsequent years.

If the manufacturer does not hit the target, it will be fined £15,000 for every vehicle it sells that does not comply with the mandate.

Rachel Hopkins, Labour MP for Luton South and South Bedfordshire, said her friends at the plant had heard they were losing their jobs.

She added: “Closing the Luton site will damage our local economy. With 600 jobs at risk, more in the supply chain, and workers and families receiving this devastating news just before Christmas, I welcome the comments from the Secretary of State saying decarbonisation must not mean deindustrialisation.”

In his initial statement, Mr Reynolds said the Government had “asked the company to urgently share their full plans”, and the Department for Work and Pensions “stands ready to help anyone affected”.

Sarah Owen, Labour MP for Luton North, said: “Vauxhall is, or was, synonymous with Luton. Stellantis’s callous decision will impact our whole town, our whole region, even.

“So what support will be offered to not just the skilled and dedicated Vauxhall workers who are losing their jobs, but also to our town as a whole to cope with the loss of this manufacturing giant which Luton helped build?”

Mr Reynolds replied: “The whole decision is regrettable, but the timing is particularly regrettable around it.”

He added: “I would not want to minimise the impact of this in any way, I believe her area is a place of considerable economic strength, firms in engineering and aerospace, in air travel, in the creative industries.

“There’s a lot to be optimistic about for the future, but that doesn’t take away the bitterness of this particular blow for Luton at this time.”