Ministers told in July of 'likely' Vauxhall closure

Jonathan Reynolds said the government had done "everything it could" to prevent the Luton closure

The business secretary has said he was made aware the Vauxhall van plant in Luton was "likely to close" just 10 days after July's general election.

Labour minister Jonathan Reynolds told the Commons that Carlos Tavares, chief executive of Stellantis, which owns Vauxhall, had said he felt "extremely frustrated" by the lack of action from the previous Conservative government which meant "his desire was to close the Luton plant".

In a statement, he said the government had done "everything it possibly could" to prevent the closure and he had met with Stellantis "many times" since the summer.

Andrew Griffith, the Conservative shadow business secretary, argued Stellantis decided to close its factory after Labour's budget "declared war on business".

Stellantis's plans to close the factory in the Bedfordshire town has put 1,100 jobs at risk.

It said it would combine its electric van production at its other UK plant in Ellesmere Port in Cheshire.

Rules imposed to speed up the transition to electric vehicles in the UK partly drove the decision, the firm said.

• BBC iPlayer: Commons statement by Jonathan Reynolds and responses

Reynolds told the Commons the new government had been forced to accept this was "a commercial decision by Stellantis as they respond to wider challenges within the sector".

Reynolds called it a "dark day for Luton" and added it was "an iconic plant powered by a talented workforce... there are very few people in the town who do not know someone who works at the site".

He added the government had asked the company "to urgently share its full plans" and hoped it would "work with the government so every single worker who is impacted receives the support they deserve".

'Unworkable'

The previous Conservative government moved the deadline to phase-out new petrol and diesel vehicle sales from 2030 to 2035.

Under the current mandate, electric vehicles must make up 22% of a company's car sales and 10% of its van sales this year.

That target is set to rise to 28% for cars and 16% for vans in 2025.

Labour said it intended to reinstate the 2030 target as part of its wider commitments to climate change policy, but would consult on how the "direction of travel" for the policy would work.

Responding to criticism of the previous Conservative administration, Griffith said the policy encouraged Stellantis to shut up shop.

"This decision is the direct result of a government policy that is simply unworkable for industry," Griffith told MPs.

"Businesses are ringing the alarm bells... Pressures on businesses are too much to swallow."

The Labour MP for Luton North, Sarah Owen, called the closure decision "callous" and added it would affect "the whole town and the region".

She added the proposed shutting down of a "manufacturing giant that Luton helped build" would follow the closure of the SKF ball bearing factory in her constituency last month, after a century of manufacturing, calling both companies "synonymous with Luton".

Rachel Hopkins, Labour MP for Luton South & South Bedfordshire, told the Commons she had friends who had found out yesterday they had lost their jobs, and asked the business secretary if he would meet with workers at the plant.

Reynolds confirmed he would visit the site.

Responding to a question from the Labour MP for North East Hertfordshire, Chris Hinchliff, Reynolds confirmed he had had "several conversations" with the Unite union but admitted a proposal from Stellantis to offer workers a relocation package to Ellesmere Port "would not be attractive" to a lot them.

Mid Bedfordshire's MP criticised what he called Labour's "tax on jobs"

Mid Bedfordshire's Conservative MP Blake Stephenson said the government had revealed very little "about how it would offer support" to workers.

Stephenson, whose seat is home to many workers north of Luton, added he was concerned Labour's "tax on jobs" would make it difficult to replace the 1,100 manufacturing roles at risk.

In response Reynolds called the staff "skilled and talented" and said they had not potentially lost their jobs "through any deficiencies on their part".

He added they were "brilliant and talented people who would be in demand elsewhere".