Business secretary criticized for delayed talks as Vauxhall confirms Luton closure
The Business Secretary is facing allegations of failing to co-operate fully with Vauxhall’s parent company Stellantis ahead of its decision to close a van factory in Luton – putting up to 1,100 jobs at risk.
Critics say the Government has neglected to maintain meaningful dialogue for months despite early warning of a possible shutdown.
Stellantis, which owns the Vauxhall brand, announced last month that it would consolidate its British operations at Ellesmere Port in Cheshire, citing strong UK zero-emission car standards as a “key factor” in its decision to close the Luton site. The news comes after major car factories closed over the past decade, raising fresh doubts about the future of car manufacturing in Britain.
Jonathan Reynolds, the Business Secretary, met with representatives of Stellantis three times in July—just after Labour’s election victory—when the Government was first told of the company’s intention to close Luton. However, according to parliamentary records, no further ministerial meetings took place until November 26, the same day Stellantis publicly confirmed plans to close.
Andrew Griffith, Shadow Secretary of State for Business and Trade, who presented the parliamentary question, criticized the negotiation gaps. “It is clear that the Government was not taking matters in Luton seriously,” said Griffith. He added that the Chancellor’s recent budget, along with additional pressures such as the rise in National Insurance, may have pushed the lot further for manufacturers.
Sources within Whitehall insist that Stellantis has been in regular contact with officials from the departments of business and transport over the summer and autumn, discussing possible ways of supporting their UK sites. When announcing the closure, Reynolds defended the Government’s role before the Commons Business and Trade Select Committee. He noted that the Government has been aware of Stellantis’ concerns for a long time and has repeatedly urged the company to look into it.
In response to this problem, Reynolds has launched a consultation on a UK mandate for zero-emission cars, where 22% of each car sold by 2024 must be zero-emission – rising sharply to 80% by 2030. overextended in the face of weaker-than-expected market demand, risking investments and jobs if not managed flexibly.
The spokesperson for the Department of Business and Trade emphasized that the Government is still committed to the automotive sector. They point to continued financial support, including more than £300 million to encourage the adoption of electric vehicles and £2 billion earmarked to help the domestic industry reach zero.
Meanwhile, Unite, the trade union, has called on Stellantis to halt the Luton closures as the company looks for a new chief executive and considers a strategic overhaul. The union says new leadership could pave the way for a different approach, which could protect jobs and help the UK maintain a strong car manufacturing base.
