Government calls for pause on Vauxhall plant closure

The Government has called for car giant Stellantis to review its plans to close Luton's Vauxhall van factory.

The move was confirmed by the Business Secretary Jonathan Reynolds who has written to the company asking for it "pause" redundancies to enable more time for discussions "about options to keep the plant open".

The full letter was posted to X by Luton MP Rachel Hopkins who has been campaigning for the decision to be reversed.

Stellantis previously said rules imposed to speed up the transition to electric vehicles in the UK had partly driven its decision.

About 1,100 jobs have been put at risk as a result of the plans

The company which also owns Citreon, Peugeot and Fiat announced it would shut the Kimpton Road site next year to combine its electric van production with its other UK plant in Ellesmere Port in Cheshire.

It said this would put about 1,100 jobs at risk.

There had been growing concerns among car manufacturers over the sales targets of electric vehicles with many, including Stellantis, calling for the government to do more to boost consumer demand.

In his letter Mr Reynolds said: "Vauxhall has had a proud legacy in Luton for over a century and I share your disappointment that the company has decided to pursue this option."

He said if plans for the closure do go ahead, the government would work to support employees affected by redundancy.

"Luton has a talented workforce and the Government is keen to work with you to support maintaining skilled manufacturing jobs in the area," he added.