Vauxhall closure set to have '£310m impact on Luton'

The closure of the Vauxhall plant in Luton will cost the town a total of about 3,700 jobs and have a £310m impact on the local area's economy, a council leader told BBC Politics East.

On Tuesday, Stellantis, the owner of Vauxhall, announced plans to close its Bedfordshire van-making factory, putting about 1,100 jobs at the plant at risk.

Hazel Simmons, the Labour leader of Luton Borough Council, said this was "devastating news" for the area and that she had talked to trade unions and was planning talks with Stellantis.

The Department for Business and Trade said it was a "concerning time for the families of employees at Luton".

Stellantis, which also owns brands including Citroen, Peugeot and Fiat, said this week 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 (EV) in the UK partly drove the decision, the firm said.

Simmons said: “It is devastating news for Luton – 1,100 employees told just before Christmas."

She said the council had had an “excellent meeting with the trade unions” and she had not given up on the possibility that the plant could remain in Luton.

She added: “This is a consultation. In a proper consultation, there should be an opportunity to talk to the company to see what is possible.

"We owe that to the employees to at least attempt this."

Simmons said the factory was "at the heart of our town" and she could not "imagine a Luton without Vauxhall".

She added: "Luton has had this happen before. It used to have a hat industry which collapsed. We bounce back.”

“I am not underestimating the effect this will have on the town. Our estimate is that it will have a £310m impact on the town. I can not under-estimate the job to be done - We will do anything as a council to work with the employees."

The Department for Business and Trade said while it was encouraging to see Stellantis invest in its Ellesmere Port plant, "we know this will be a concerning time for the families of employees at Luton who may be affected".

It added: “We have a longstanding partnership with Stellantis and we will continue to work closely with them, as well as trade unions and local partners on the next steps of their proposals.

“The government is also backing the wider industry with over £300m to drive uptake of zero emission vehicles and £2bn to support the transition of domestic manufacturing."

BBC Politics East will be broadcast on Sunday 17 November at 10:00 GMT on BBC One in the East of England, and will be available after broadcast on BBC iPlayer.

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