The Business Secretary is facing accusations of failing to fully engage with Vauxhall’s parent company Stellantis ahead of its decision to close the van-making plant in Luton—a move that puts up to 1,100 jobs at risk.
Critics claim the Government neglected to maintain meaningful dialogue for months despite an early warning of potential closure.
Stellantis, which owns the Vauxhall brand, announced last month that it would consolidate its British operations at Ellesmere Port in Cheshire, citing the UK’s stringent zero-emission vehicle quotas as a “significant factor” in its choice to close the Luton site. The news arrives against a backdrop of several major automotive plant closures over the past decade, raising fresh doubts about the future of car manufacturing in Britain.
Jonathan Reynolds, the Business Secretary, met Stellantis representatives on three occasions in July—shortly after Labour’s election victory—when the Government was first alerted to the company’s inclination towards a Luton shutdown. However, according to parliamentary records, no further ministerial meetings took place until 26 November, the same day that Stellantis publicly confirmed the closure plans.
Andrew Griffith, the Shadow Secretary of State for Business and Trade, who tabled the parliamentary question, criticised the gaps in engagement. “It’s clear the Government was not taking the issues at Luton seriously,” Griffith said. He added that the Chancellor’s recent budget, with its additional pressures such as the National Insurance rise, may have further complicated the environment for manufacturers.
Sources within Whitehall insist that Stellantis remained in contact with officials from both the business and transport departments during the summer and autumn, discussing possible support measures for 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 had been aware of Stellantis’s concerns from early on and had repeatedly urged the company to reconsider.
In response to the crisis, Reynolds has launched a consultation on the UK’s zero-emission vehicle mandate, under which 22% of each carmaker’s 2024 sales must be zero-emission—rising sharply to 80% by 2030. Industry voices have warned this timetable may be overly ambitious given weaker-than-expected market demand, risking investment and jobs if not managed more flexibly.
A spokesperson for the Department for Business and Trade stressed that the Government remains committed to the automotive sector. They pointed to ongoing financial support, including more than £300 million to encourage electric vehicle uptake and £2 billion earmarked to aid domestic industry’s transition to net zero.
Meanwhile, Unite, the trade union, has called on Stellantis to suspend the Luton closure as the company seeks a new chief executive and considers strategic adjustments. The union argues that fresh leadership could pave the way for a different approach, potentially safeguarding jobs and helping the UK retain a robust automotive manufacturing base.
Jamie Young
Jamie is a seasoned business journalist and Senior Reporter at Business Matters, bringing over a decade of experience in UK SME business reporting.
Jamie holds a degree in Business Administration and regularly participates in industry conferences and workshops to stay at the forefront of emerging trends.
When not reporting on the latest business developments, Jamie is passionate about mentoring up-and-coming journalists and entrepreneurs, sharing their wealth of knowledge to inspire the next generation of business leaders.
