The Minister for Industry and Economic Security (Ms Nusrat Ghani)
What a disappointing opening speech. There was an opportunity to praise, promote and protect the automotive sector—and to talk about all the positive news stories—but all we have heard for the last 10 or 15 minutes was the automotive sector being talked down. I appreciate that the timing of this debate has not gone well for the Opposition: as my hon. Friend the Member for Bosworth (Dr Evans) mentioned, today we have heard about the Renault Group and Geely having chosen the UK as the headquarters of a new company developing ultra low emission engines and potentially investing billions of pounds in the UK—up to €7 billion. That shows not only the confidence of the automotive sector, but its commitment to the UK, and these are the opportunities or the stories we should be talking about.
The hon. Member for Stalybridge and Hyde (Jonathan Reynolds) constantly referenced the SMMT statistics, but he forgot to mention the ones he should have reported at the Dispatch Box so that we could once again promote how healthy and dynamic the automotive sector is. Car production in Britain rose for a fourth straight month in May. The SMMT has confirmed that a total of 79,046 cars rolled out of the factory gates a few months ago, which is an increase of more than 26%. Passenger car numbers are boosted by a greater appetite for hybrid electric motors built in Britain. The bosses at the SMMT have said that, while there have of course been challenges around the world, manufacturers have
“defied the challenging economic backdrop to fulfil customer demand for the latest British-built models, at home and overseas,”
so that manufacturing and production are indeed up.
This is a positive news story, and any opportunity we have to speak about the automotive sector should be positive, not negative or all about political point scoring. This is a serious topic and a serious industry. I know the hon. Gentleman is keen to be very ideological within the Westminster bubble, but I would suggest he steps a little outside it. I know my hon. Friend the Member for South Derbyshire (Mrs Wheeler), who is a champion for Toyota, which has the largest manufacturing plant in her constituency, would welcome a visit by Labour Members so they can see how the sector is booming just in her constituency. There are over 2,000 people working at the plant in South Derbyshire and involved in the supply chains, and 80% of the cars manufactured are exported to Europe. Exports are up, by the way, which I will get on to. Toyota continues to innovate and it is at the forefront of producing hybrid cars. It has been cutting emissions for over a decade and takes net zero seriously, having energy from solar panels all around the plant. The point she would want to make is, “Get out of the Westminster bubble, visit South Derbyshire, see what is happening at Toyota”—and at many other firms, as I will go on to say—“and you will see the work is going well.” Our job is to protect, promote and praise, not to talk the sector down.
Sarah Owen (Luton North) (Lab)
It is all very well and good talking about optimism, but does the Minister accept the reality facing the automotive industry in the UK today, and the stark warnings given by Stellantis about future job losses if the Government do not sort out the rules of origin problems?
Ms Ghani
I want to state for the record—and for the hon. Lady, who was obviously sitting there while I was speaking—that that was not optimism. Those were the facts and figures promoted not by Government, but by industry representatives. I had a meeting with Stellantis recently. We know that a number of challenges are reflected globally, not just in the UK, such as being able to recruit into the sector. The hon. Member for Stalybridge and Hyde missed another opportunity to talk about the fantastic jobs that are available. Of course, on rules of origin, that is an issue not just in the UK; it is an issue for lots of other countries that want to export and import, too.
Ms Ghani
This Government have a strong mandate to reach net zero and the consultation has just taken place on said mandate. The right hon. Member will know that I have been spending a lot time with the automotive sector, including taking delegations to meet the Minister of State, Department for Transport, my right hon. Friend the Member for Hereford and South Herefordshire (Jesse Norman), who will be overseeing that. My job—I also chair the Automotive Council—is to champion business, and on occasion to try to remove all the barriers it needs removed for it to manufacture more and export more. I know that the Transport Minister will be speaking more about that later.
I will get on to all points the hon. Member for Stalybridge and Hyde raised, but he mentioned growing up in Sunderland. Just for the record—I can see there is a Birmingham MP here, the hon. Member for Birmingham, Perry Barr (Mr Mahmood)—I grew up in Birmingham very close to a car plant that employs many members of my family, including my brother Nasim, so this sector is very close to my heart. I have been told not to make any football jokes about Birmingham and Sunderland at this point; I will leave that for the final speech.
Matt Western
This point is not about football; it is about the debate. To pick up on the Minister’s analysis, she is correct on the statistics she gave about the UK market. She will know that we started from a pretty poor base post the pandemic and that our production was particularly hit, but other countries recovered better. It is an international market that is fighting for investment—I am sure she will accept that—and that is why it is of concern.
Ms Ghani
It is an international market that is fighting for supply chains. The SMMT was clear that, when manufacturing production was low, that was down to access to products and critical minerals, which I will come on to. As well as taking care of the industry, I am responsible for critical minerals and for supply chains. We are working with the industry, which I met just this morning, to put together a supply chain import strategy, which will be out in the autumn. We need to get a number of things right to make it even easier for the sector to do even better than it already is, but it is in a really good place and I will go on to mention some of the facts and stories about that.
The sector is indeed a jewel in the crown of our economy. It is vital, because of where it is based across the country, to supporting the levelling-up agenda, net zero and advancing global Britain. Our automotive industry employs 166,000 people, adds over £70 billion to the UK economy and is our second largest exporter of goods. The UK is proud to be home to major global manufacturers such as JLR, Nissan, Stellantis, Toyota, BMW and Ford. But that is not the whole of the UK’s automotive eco-system: we have a lot more to be proud of, from our luxury and performance sector, including Rolls-Royce, Bentley, Aston Martin, McLaren and Lotus, to heavy goods vehicles and buses, such as Leyland Trucks, Wrightbus, Alexander Dennis and Switch, as well as the future of mobility, encompassing connected and autonomous vehicles. Those manufacturers are supported by a diverse, resilient and growing UK supply chain that spans a wide range of components and includes companies such as Bosch, NSK, Meritor and Swindon Pressings. These are valued partnerships, and the sector knows that my Department for Business and Trade is the Government’s first port of call to help businesses grow and flourish, and to create jobs, apprenticeships and opportunities around the country.
Mike Amesbury
I thank the Minister for being generous with her time. All the manufacturers that she mentioned face a cliff edge in January 2024, with the 10% tariff. What are the Government going to do about it? It is desperate in terms of those jobs in our communities.
Ms Ghani
I assume that the hon. Member is referring to the rules of origin tariff. That is why we are working hard and negotiating with the EU, and working with our partner representative groups within the EU, so that they can be lobby as well. This is not just an issue in the UK. This is a European issue too, and we are making sure that those voices are heard loud and clear with our partners across Europe.
Justin Madders (Ellesmere Port and Neston) (Lab)
I have a specific question for clarity: have the Government formally requested a reopening of the rules of origin for 2024?
Ms Ghani
The Government are working hard to share the challenges that will be faced by all manufacturers in Europe, not just the UK, when it comes to importing and exporting vehicles. This is not just a UK issue, and it is important that not just we but our counterparts in Europe make these arguments loud and clear to the EU. I recently met SMMT and asked that its sister bodies do the same where they reside in European countries, to ensure that those arguments are heard loud and clear.
As I said, there is huge diversity of companies within the supply chain and manufacturing of all automotive vehicles, and the UK has a full automotive eco-system across the UK. The sector is here because it recognises the UK’s unique strengths. Our engineers are world class—it is not for nothing that six out of a total of 10 Formula 1 teams are based in the UK. More broadly, the sector recognises that this Government have its back. We want to use innovation, skills and a competitive business environment to ensure that the UK automotive sector can thrive.
Dr Luke Evans
I am grateful to the Minister, because she alluded to the point that I was making about the automotive industry. We have talked a lot about manufacturing, but the UK is the world leader in things such as research and development, as well as in testing—autonomous testing, safety testing; we are literally the world leaders in this stuff. I mainly know that because a lot of it is based in my patch. Does the Minister agree?
Ms Ghani
I could not disagree with my hon. Friend, who is a champion for all things technology and transport, as well as for his constituency. The investment made in R&D has enabled large manufacturing firms to work closely with our academic institutions, and to de-risk some of the technologies that are now becoming mainstream, and we continue to support that area. That leads on to my next point about the Advanced Propulsion Centre and the automotive transformation fund, which are key in us trying to de-risk and adopt new technologies to drive the sector forward.
On the Automotive Council, the hon. Member for Stalybridge and Hyde said that he was engaging with the sector, but I am not quite sure where and when. A lot of the comments he made will not go down well with the sector because they were not very positive on all the work it has been doing. I engage directly with firms to see how hard they are committed to the sector, and what they expect from their politicians is support, not to be talked down.
I put on record my thanks to Graham Hoare, the current co-chair, Mike Hawes, Neville Jackson, Ian Constance, Markus Grüneisl, Paul Willcox, Murray Paul, Adrian Hallmark, Michael Leiters, Tim Slatter, Alan Johnson, Richard Kenworthy and many other indispensable members of the Automotive Council. I thank them for all the work they do, considering how challenging times have been not just for us but for our counterparts in Europe. I recently spoke at the Society of Motor Manufacturers and Trader’s parliamentary reception, and I welcome its “Manifesto 2030” with its five key priorities: green automotive transformation strategy, net zero mobility, green skills, made in Britain, and powering UK clean tech. There is a lot that we agree on, and I look forward to working with the sector to try to protect and strengthen the whole automotive industry. Car companies want to innovate, and we want to support them to do so. That is why the Government have an overarching goal of making the UK a global hub for innovation, as alluded to by the my hon. Friend the Member for Bosworth.
Greg Smith
In embracing that innovation—this is further to my intervention on the shadow Minister—the UK is a leader in the development of the synthetic fuel sector. By that, I do not mean fuels made from feedstocks; I mean green hydrogen merged with atmospheric carbon capture, whereby what comes out of the tailpipe is the same volume of carbon that is then recaptured to make the next load of fuel. With whole system analysis, that will be shown to be net zero, but the zero tailpipe mandate gets in the way of that. Does the Minister agree that, to embrace this innovation properly and to give an eclectic future to the automotive sector, we need to embrace those innovators as well?
Ms Ghani
We do need to embrace those innovators. One of the reasons we have so much investment in the UK in innovation and the automotive sector is that we are often first out of the door in helping to de-risk and test that technology. The Minister of State, Department for Transport, my right hon. Friend the Member for Hereford and South Herefordshire, will touch on tailings, but just last week I was at the Lower Thames Crossing, which is putting out a pitch to ensure that all vehicles on the construction site have green hydrogen. The several thousand vehicle movements on and off the site carrying freight will also have green hydrogen. The site is a port, and given the level of construction that is taking place, it may be one of the largest construction sites to get to green hydrogen first. I am not sure, but I think it is pretty well on track to being a world leader in that.
The UK-wide innovation strategy sets out our long-term plan for delivering innovation-led growth. Our primary objective is to boost private sector investment across the whole UK, creating the right conditions for all businesses to innovate, giving them confidence to do so and ensuring that we are leading the future by creating it.
Barbara Keeley
Will the Minister come on to the point that I raised with my hon. Friend the Member for Stalybridge and Hyde (Jonathan Reynolds) about the roll-out of charging points? That is an important point. People are making decisions about electric vehicles, and we want them to make the right decisions. There is an absolute dearth of charging points in my constituency and many parts of Greater Manchester, and Westminster has installed more public electric charging points than the whole north of England. The Government are asleep at the wheel. When will they wake up and do something about that?
Ms Ghani
We are topping and tailing this debate with a Transport Minister and I know he is keen to touch on charging points, but the public charging network is growing quickly, and public charging devices have more than tripled in four years, from 10,300 devices in January 2019, to more than 43,000 in June 2023. The Government expect that around 300,000 charge points will be needed as a minimum by 2030. They are being rolled out at pace, but I do not doubt there will be constituency, case-by-case charge point concerns and the Minister will reflect on those.
One concern that the SMMT and all Members of Parliament who have manufacturing plants in their constituencies regularly raise with me is access to talent. Car companies need highly skilled individuals across the entirety of their business. One reason the UK is attractive is our world-leading universities, with four UK institutions in the global top 10, according to the QS world university rankings. But that is not all. We have supported the automotive sector through the apprenticeship levy, with £2.7 billion funding by the 2024-25 financial year. That will support apprenticeships in non-levy employers, often SMEs, where the Government will continue to pay 95% of apprentice training costs.
We recognise the importance of a level playing field. That is why, at the spring Budget, the Chancellor launched a new capital allowance offer. Businesses will now benefit from full expensing, which offers 100% first-year relief to companies on qualifying new main-rate plant and machinery investments from 1 April 2023 until 31 March 2026, the 50% first-year allowance for expenditure by companies on new special rate assets until 31 March 2026, and the annual investment allowance, which provides 100% first-year relief for plant and machinery investments up to £1 million.
Due to Putin’s invasion of Ukraine, energy costs have been an issue and a concern for the sector. That is why we have again intervened on behalf of the automotive sector, as well as many others, to ensure that the UK’s offer is competitive. It is why the Government have implemented a range of targeted measures to ensure that energy costs for high energy intensive industries, including battery manufacturing, are in line with other major economies around the world, levelling the playing field for British companies across Europe through the British industry supercharger scheme. In addition, to take just one example, the industrial energy transformation fund, now in its third phase, was designed to help businesses with high energy use to cut their energy bills and carbon emissions by investing in energy-efficient and low-carbon technologies. This Government announced £315 million of funding in the 2018 Budget available up to 2027.
The hon. Member for Stalybridge and Hyde talked about providing confidence and support for the sector, and I want to flesh out some of the announcements he was unable to bring himself to say at the Dispatch Box in case that was put into Hansard. Companies continue to show confidence in the UK, and we have announced major investments across the UK, including the £1 billion from Nissan and Envision to create an EV manufacturing hub in Sunderland. I was just on the phone to Envision this morning. It is an end-to-end supply chain. We have £100 million from Stellantis for its site in Ellesmere Port, and £380 million from Ford to make Halewood its first EV components site in Europe.
Jaguar Land Rover has also announced that it will be investing £15 billion over five years into its industrial footprint as part of its move towards electrification. That is great news for the west midlands, where JLR has three production sites, research and development facilities, and its headquarters. I am hugely confident that the UK will continue to attract investments large and small to enable the EV transition and deliver green jobs. Those are the stories we should be promoting at the Dispatch Box, not playing down.
The Government recognise the concerns of the sector, and we are dealing with serious global challenges, including rising costs because of Putin’s horrific war in Ukraine, supply chains disrupted by covid aftershocks and countries turning inward towards protectionism, by which, of course, I mean the Inflation Reduction Act. Acknowledging those issues, over the course of the summer I have been holding a series of business roundtables to understand exactly where the challenges in supply chains are most acute, and where the Government and businesses can work together more closely to ensure that the UK’s supply chains are resilient, now and in the future.
Those headwinds have been felt across the globe, and where the UK sector has been impacted, it has not been uniquely impacted. The entire automotive sector is midway through a once-in-a-lifetime shift away from the internal combustion engine towards zero-emission vehicles. That is good not just for our net zero ambitions; it also has the potential to provide wider economic and social benefits. Of course, our competitors know that too, and the race to secure zero-emission manufacturing capacity across the world is fierce. Some countries seem willing to spend eye-watering amounts. We will be offering targeted investment in the future of the auto manufacturing sector. That means focusing on exactly where we know we are ahead of the game internationally, offering targeted and measured support that reflects the size and scale of our outstanding automotive sector.
As I have said, we have more than a chequebook to attract companies to these shores; our highly productive and skilled workforce, focus on innovation and tech and the ease of doing business are key factors in a company’s decision to base itself in the UK. There is a backdrop of intensely challenging constraints on the sector globally, while the sector is undergoing a seismic technological transformation. It is clearly a difficult situation for manufacturers across the world, but there are positives to be considered, especially here in the UK. The SMMT reported that UK commercial vehicle production has just had its best May performance since 2008, growing by 36.9%—I thought the hon. Member for Stalybridge and Hyde might crack a smile for the sector—and year-to-date output is some 47.6% above the pre-pandemic levels of 2019. That is the message we want to send internationally. It clearly shows that the UK automotive sector is strong, dynamic and fundamentally capable. I want the UK to have a thriving automotive industry. As we take on these global challenges, we will take them on together with the sector.
Some mention was made of R&D support, and I will share all the work we have done. Our R&D and capital programmes delivered through the Advanced Propulsion Centre and the automotive transformation fund are positioning the UK as one of the best places in the world to design, develop and build zero-emission vehicles. They are working together to support the creation of an internationally competitive electric vehicle supply chain. In the coming months, after engagement with industry, the Government will build on those programmes to take decisive action and ensure future investment in the manufacture of zero-emission vehicles, as part of our commitment to building a cleaner, greener, more sustainable Britain fit for the world of the future, not the world of the past that the hon. Member for Stalybridge and Hyde is fixated on.
The automotive transformation fund supports the creation of an internationally competitive electric vehicle supply chain in the UK. It provides support to late-stage R&D and capital investments in strategically important technologies. That includes unlocking strategic investments in gigafactories, which I will come to, motors and drives, power electronics and fuel cell systems. Our automotive industry has a long and proud history. We are determined to build on our heritage as we invest in the technologies of the future, positioning the UK as one of the best locations in the world to manufacture electric vehicles.
I have spoken previously about the Advanced Propulsion Centre, because it does fantastic work in driving technology forward. It was founded in 2013 as a £1 billion joint venture between the automotive industry and the Government to help the industry meet the challenges of innovation and decarbonisation. It facilitates funding to UK-based research and development projects developing zero-emission technologies. The programme helps accelerate the development, commercialising and manufacture of advanced propulsion technologies in the UK. So far, it has supported 199 projects involving 450 partners. It is estimated to have supported more than 55,000 highly skilled jobs and is projected to save more than 350 million tonnes of CO2—the equivalent of removing the lifetime emissions of 14.1 million cars.
Those projects include the setting up of a joint venture between Unipart and Williams Advanced Engineering to manufacture batteries in Coventry, Danfoss setting up a centre of excellence for hydraulic R&D at its plant in Scotland, and Equipmake increasing the size of its manufacturing plant in Norfolk to meet demand for its electric drive unit. That shows how much work can be delivered and how many jobs created if we work with industry and help it de-risk in adopting new technologies.
I recently visited the Warwick Manufacturing Group, which the hon. Member for Stalybridge and Hyde alluded to. I am surprised he did not applaud the work further.
Ms Ghani
He could have gone further.
I saw at first hand the cutting-edge future mobility research being done in Coventry, the birthplace of British motor manufacturing. While in Coventry, I also had the opportunity to attend the Advanced Propulsion Centre to discuss how we can build on the success of our existing R&D and capital investment programmes. During the visit I met year 6 pupils from Templars Primary School in Coventry who attended the Advanced Propulsion Centre’s STEM day. That is a prime example of outreach activity to inspire the next generation of automotive engineers.
We cannot talk about the automotive sector without thinking about the broader supply chain and one of my particular passions, critical minerals, which I am surprised the hon. Member for Stalybridge and Hyde did not spend more time discussing. He missed out the key point of what is needed to produce electric vehicles. We know that China dominates the EV market, partly due to its grip on the supply chain. It controls much of the mining of crucial raw materials, and 80% of battery making for EVs is controlled by Chinese firms. It is also the world’s top car exporter.
I am not sure whether the hon. Member has had time to read Ed Conway’s recent book, “Material World”, which makes some key points on lithium. We know that reserves of the metal are concentrated in a handful of nations. In his book, he said that lithium reserves are concentrated in “a handful of nations”, so that “while the rest of the world panics about China’s dominance of the battery supply chain, many in Beijing are simultaneously panicking about China’s reliance on the rest of the world’s raw materials.”
We know that an EV car battery contains 40 kg of lithium, 10 kg of cobalt, 10 kg of manganese and 40 kg of nickel, and that is before we consider the graphite that goes into the anode. Those materials have to come from somewhere, which is why we updated our critical minerals strategy in the “Critical Minerals Refresh”—[Interruption.] That was a positive noise from the hon. Member—to ensure we were supporting the sector through the whole supply chain. I encourage colleagues to read Ed Conway’s book. I am not on commission, by the way; it is just a good read.
The hon. Member for Stalybridge and Hyde talked about not having a strategy, but we are working with industry to make sure it can plan for the future. To do that, we had the “Critical Minerals Refresh”, which came from the integrated review. We are making sure that we are focused on batteries and the EV supply chain here in the UK. Recent good news that the hon. Member also forgot to mention is the joint venture between British Lithium and Imerys, announced on 29 June. That is a massive boost to the critical minerals supply chain in the UK.
By the end of the decade, the development of Cornwall as the UK’s leading lithium hub will supply enough lithium carbonate for 500,000 electric cars a year. To help secure the supply of critical minerals, the Government have not only refreshed our critical minerals strategy, but put in place a task and finish group to work with industry so that it can highlight its particular vulnerabilities and we can provide it with the confidence and resilience it needs in its supply chains.
Most recently, I visited Indonesia, where I met Indonesian Ministers to emphasise that the UK has a lot to offer on critical minerals, particularly in relation to private finance, environmental, social and governance capabilities, and mining services. I also visited key mine sites and met companies that are critical in the battery supply chain and in critical mineral production, including some innovative UK companies showcasing the best of British—I know that sentence would be hard for the hon. Member for Stalybridge and Hyde ever to put on the record.
This year, I have also visited South Africa, where I represented the UK at the Minerals Security Partnership ministerial meeting and confirmed the UK’s intention to host the next such meeting during London Metal Exchange Week in October. I also visited Canada, where I signed the UK-Canada critical minerals statement of intent and launched our critical minerals dialogue with Canada, forging a key partnership with one of the most important global players in the critical minerals ecosystem. The hon. Member will want to have a moment to reflect on and applaud our work internationally and domestically on critical minerals.
Ms Ghani
So many—too many to list right now.
We also need to look at battery recycling. We want to create a regulatory space that supports the appropriate treatment of EV batteries. The Department for Environment, Food and Rural Affairs is currently reviewing existing UK batteries legislation and working at pace to publish a consultation in the second half of 2023. We have also funded the Faraday battery challenge, which has enabled research into the safe and efficient segregation and repurposing of EV battery cell components. Altilium is exploring how to recover the critical metals from old EV batteries and process them effectively so that they can be reused in new batteries. Reblend aims to develop the core processes and capabilities for a UK-based automotive battery recycling industry that can recover cathode materials from production scrap and end-of-life automotive and consumer batteries for reuse in automotive batteries going forward. We are not only trying to get close to host countries and make sure that we are mining ethically, but seeing how we can ensure that we are recycling batteries.
The Minister of State at the Department for Transport, my right hon. Friend the Member for Hereford and South Herefordshire, will touch on a few issues about the zero-emission vehicle mandate, so I will quickly touch on rules of origin. To support the transition, we must not only champion innovation but address all barriers to trade with partners and markets all over the world. Our closest trading partner is of course the EU, with whom we share not only climate goals and a trajectory towards electrification, but deeply integrated supply chains. More than 50% of cars manufactured in the UK and exported are destined for EU consumers. For those reasons, I am working closely with the industry to address its concerns about planned changes to the rules of origin for electric vehicles in the trade and co-operation agreement between the UK and EU.
Since signing the deal, unforeseen and shared supply chain shocks have hit the auto industry hard. That has driven up the cost of raw materials and battery components, making it harder to meet the changing rules. That risks industry on both sides facing tariffs on electric vehicles at a crucial time in the transition to electrification. I am determined to seek a solution to this shared problem and will work with the EU to fix it for 2024. The Prime Minister has raised the issue directly with European Commission President Ursula von der Leyen, and I and other Ministers are engaging with our EU counterparts. We will continue to work closely with industry to address any and all blockers to the electric transition so that our great UK auto industry continues to benefit from access to global markets and UK consumers have the best possible options as we make the switch to electric vehicles.
I wanted to touch on hydrogen, but I believe I am running out of time. I was also going to reflect on success in the aerospace sector, which is very much linked to the automotive sector, but I will not because I can see that you would like me to conclude, Madam Deputy Speaker.
Madam Deputy Speaker (Dame Eleanor Laing)
Order. For the sake of clarity, there is plenty of time for the debate and the hon. Lady can take as long as she wants. She has so far held the floor for 32 minutes. It is not for me to judge how long she ought to speak for; it is for her to judge the mood of the House.
Ms Ghani
Well, I think the mood of the House is to be more positive about the automotive sector. I could list even more stories, but I will conclude because I believe that Opposition Members would despair about all the positivity about the automotive sector that we could talk about and reflect on.
We are home to more than 25 manufacturers that build more than 70 different vehicles in the UK, all of which are supported by 2,500 component providers and some of the world’s most skilled engineers. It is incredibly important to reflect how difficult it has been for the automotive sector globally, but of course we have huge success stories here in the UK. In 2022 we exported vehicles to more than 130 different countries and built more than three quarters of a million cars, with the onwards trajectory rising year on year. This is a healthy sector going above and beyond not only to reskill and upskill, but to meet net zero targets.
The Government are supporting the UK automotive industry, and the sector is a stalwart example of innovation and dynamism to the rest of the world. It is a great sector to get into, whether someone joins it as an apprentice or even by taking on a regular job. Of course, there is more to do. There are more opportunities to secure as we transition to zero-emission vehicles and we realise the potential of connected and autonomous mobility. We have already achieved a great deal in partnership with this fantastic sector, but we are determined to do more. We work with the sector—we do not sit in Westminster coming up with plans that we then U-turn on—and that has given the sector the confidence it needs to continue to invest in the UK. The job of those representing the sector is to praise, promote and protect, not to talk the sector down.
Several hon. Members rose—
Sarah Owen (Luton North) (Lab)
It is a privilege to follow my hon. Friend the Member for Llanelli (Dame Nia Griffith), who is right to talk about the importance of innovation and enterprise in this sector.
This is an important debate, which is why it is disappointing that there are now more Government Parliamentary Private Secretaries in the Chamber than there have been Conservative speakers in this debate. The public and workers will question why the Tories think so little of the automotive sector and will draw their own conclusions.
I am pleased that parliamentary time has been given today to focus on the automotive industry, which has a long and proud history in the UK. As we have already heard, from Sunderland to Coventry, Ellesmere Port and Luton, industrial cities and towns across the country have been hallmarks of manufacturing and quality production in our automotive sector for decades.
My constituents in Luton North have a particular interest in this debate. In a moment I will address the recent events at the SKF plant at Sundon Park in my constituency, but first I would like to discuss another automotive crisis facing the Luton community. Luton’s Vauxhall plant is based in the constituency of my hon. Friend the Member for Luton South (Rachel Hopkins). She is a champion for the automotive sector, and I wish the hon. Member for Bosworth (Dr Evans) had looked up how many times she has mentioned the automotive sector and industry, as he would have reached double digits for sure.
Vauxhall has been a proud industrial landmark of our town since 1905. The plant played a major part in the war effort during the 1940s, producing the Churchill tank and becoming a centre for repairing battle-damaged tanks. Thousands of Bedford lorries were turned out at Kimpton Road, including the QL, which was the company’s first four-wheel drive vehicle and a key feature of our country’s military fleet.
If we fast forward to the present day, we see that the Luton Vauxhall plant employs around 1,500 people from across our town and has been essential to creating skilled, unionised local jobs, running apprenticeship schemes for young people and fostering local talent, including across supply chains and other local businesses. The plant now specialises in producing vans, around 70% of which are exported to mainland Europe. I am so pleased to have had the pleasure of visiting the plant with my hon. Friend the Member for Luton South to meet the workers, and we saw how proud they are of what they turn out. Long may it continue, in the face of the challenge from this Tory Government.
Businesses such as Vauxhall not only provide jobs to people in Luton North, they are also intrinsic to our identity as a town. Generations have worked there, known each other and grown together. Automation changed the face and size of Britain’s automotive sector but, as quickly as we saw it rise, we are now sadly seeing it decline.
Thirteen years of Tory chaos have turbo-charged the closure of factories and the destruction of workers’ livelihoods. The Conservatives’ disastrous handling of Brexit negotiations, the explosion of the economy by the previous Conservative Prime Minister and the long abandonment of any semblance of an industrial strategy are just a few of many contributing factors.
Locally, even in the face of the Government’s evolving mess, we have seen a committed, quality automotive sector and supply chain in Luton, but it is now hanging by a thread. The Minister talked about optimism, but this is the reality facing thousands of workers across the country. Other jobs linked to manufacturing, the automotive industry and the supply chain are similarly under threat.
SKF is a major employer in my constituency. SKF is a ball bearing manufacturing plant, formerly closely tied to Volvo. SKF, like Vauxhall, has been a proud feature of Luton for more than 100 years, and it is another prime example of how this Government are sitting on their hands while they oversee the slow, managed decline of manufacturing in this country.
Last month, SKF announced its plan to close the Luton plant and move production to Poznan in Poland by the end of 2024. This is a devastating blow to our town and our local economy, and it could see the loss of up to 300 jobs. I went to meet workers and Unite union reps at SKF, and they are all deeply concerned about the sudden closure. They told me that, throughout covid, they were considered key workers. They operated and worked throughout, putting their safety behind production, for the good of the company and for the good of the economy.
Generations have worked at SKF in Sundon Park, and thousands have given their best working days to that business, only for SKF’s board members to turn their back on them and for this Government to turn their back on manufacturing workers again. Seriously, what do the Government want? A land of Amazons? A blanket of windowless storage warehouses, where people compete and break themselves to meet unrealistic and ever-increasing pick rates? That is what they are turning our country into.
I am pleased the Minister was keen to take up invites to visit Members’ constituencies, so will she please commit to meeting me and workers at SKF who face losing their jobs to see how we can save SKF’s future in Luton?
Ms Ghani
I recently had a meeting with the hon. Member for Luton South (Rachel Hopkins) and Stellantis, and I am always open to meeting colleagues on both sides of the Chamber. Of course I will meet the hon. Member for Luton North (Sarah Owen), those employees and Unite the union.
The Minister of State, Department for Transport (Jesse Norman)
It has been an interesting and absorbing debate, and I thank all those who have taken part in it. I must say that I take my hat off to the hon. Member for Stalybridge and Hyde (Jonathan Reynolds). It is interesting to know that he grew up in Sunderland, and I notice his great affection for the Black Cats—an affection I greatly share—Niall Quinn and the glory days of Peter Reid. Who but the hon. Gentleman could better hark back to the 1990s, and how much does he do so in politics as he does in football? It is a little unnerving to see him newly hirsute—at least in terms of the past year or three. He is getting an unnervingly close resemblance to His late Majesty King George V, which creates a somewhat unnerving impression across the Dispatch Box when one is trying to respond to the important points he makes.
The hon. Gentleman came, as did the hon. Member for Sheffield, Heeley (Louise Haigh), with a clear agenda for this debate, which was to tell a desperate story of a struggling industry and a country labouring in its automotive manufacturing. Unfortunately, they have both had desperately bad luck in their choice of debate, because those gloomy speeches are made, and the desire for optimism is expressed, and then it turns out that Geely and Renault have today announced a pioneering new investment to become a global leader in new engine technologies. Not only that: it turns out that we just laid the new charge point regulations, which will make it easier than ever to own an EV. Those were widely welcomed, I might add, by Mike Hawes of the SMMT, who was richly quoted today by Opposition Members, and with reason. Fascinatingly, only today, Tesla has announced its intention to become an electricity supplier, which will itself become an enormously important part of that wider systems infrastructure that has been rightly mentioned. What a day to choose to be gloomy on. What a day of good news, and how much that reinforces the picture of an industry that is dealing brilliantly with the challenges and changes to its own circumstances.
Jesse Norman
I would give way, but I want to respond to the many other points from Members who actually made speeches.
Jesse Norman
I hope the hon. Lady will let me get to those points first. [Interruption.] We can go on, or Opposition Members can listen to what the Government are trying to say.
The hon. Member for Stalybridge and Hyde talked about low business investment, and he is absolutely right that one should not pick and choose statistics but try to give a full picture. I was, therefore, slightly surprised that he ignored the fact that business investment has grown steadily since 2010. The Institute for Government published a report that tracks the crashing of business investment in this country to the Labour Administration and dates its recovery from 2008 to 2010. That is the picture of business investment that the hon. Gentleman asks us to get to.
My hon. Friend the Member for Bosworth (Dr Evans) rightly highlighted MIRA. What a great facility that is and what a great testing opportunity it will create for this country over the next few years. He is right to talk about grid connectivity and to mention Triumph Motorcycles, a business that I met only the other day, but he would have wanted to mention the strategic framework, which was announced last year, for electricity provision. If there is a report coming soon—he can speak from his knowledge of that in a Parliamentary Private Secretary context—I can only applaud that.
The hon. Member for Worsley and Eccles South (Barbara Keeley) worried about the roll-out of charge points. I hope she will be reassured by the new regs on charge points, which we have only just laid and which were welcomed by the SMMT and many other players across that industry. I also hope she will be pleased that ChargeUK, representing the charge point operators, has announced that £6 billion will be invested in charge points across the country over the next few years. That is a direct result of the ZEV mandate, which ties the creation of charge point infrastructure to the support for EVs in the systemic way that parties across the House, including the Opposition, recognise. It is those two things that will grow together. It is the ability to aim against that target of specific EV numbers coming into and being sold in this country that creates the priming for private investment, and rightly so.
I was pleased to hear the contribution of the hon. Member for Birmingham, Perry Barr (Mr Mahmood), who was absolutely right to raise the topic of apprenticeships. As an apprentice in this House, I salute him; he echoed the “Education, education, education” policy of a former Member of this House with “Skills, skills, skills”, which I completely agree are very important. Let me remind him that in my constituency we are pioneering a specialist STEM technology university—the New Model Institute for Technology and Engineering—which is just the thing that can be used to build skills and to prime levelling up across the country.
What a wonderfully fresh and enthusiastic speech from the hon. Member for Gordon (Richard Thomson). I was excited to hear it, but tragically it turned out to be a tag-team “curse on both your houses” misery exercise, relitigating Brexit long after that horse has left the stable. That was rightly picked up by the hon. Member for Stalybridge and Hyde, who did not want to be drawn on Brexit. I understand why: the country took a decision and we are working with the consequences.
The hon. Member for Gordon said that the speech by my hon. Friend the Minister for Industry and Economic Security—a brilliant speech it was, too—was the length of time it would take to charge an EV. At 35 minutes, that is not quite true, but that is absolutely the ambition that we want to get to for all EV operators across the country. We want people to be able to charge very rapidly while they go and pick up a cup of coffee in the usual way.
I thank the hon. Member for Llanelli (Dame Nia Griffith) for her comment. She asked for a renewable energy focus and was right to do so. I hope that I can reassure her by reminding her that National Grid reported that in 2010 less than 20% of our energy was renewable, while in 2022—last year—more than 50% was renewable in five months of the year. That is tremendous progress. She may also be pleased to know that coal, which was used for 43% of electricity generation in 2012, is now at 1.5%. That is tremendous progress on both those fronts.
Sarah Owen
On a point of order, Mr Deputy Speaker. Listening to the Minister’s response, I want to give him the opportunity to correct the record. Not only does he seem not to be living on the same planet as us, but he is clearly not in the same Chamber. He implied that I had not spoken in the debate, but I gave a lengthy speech on the issues we are facing in Luton right now. I invite him to correct the record at the Dispatch Box.
Jesse Norman
I would be happy to respond to the hon. Lady. That is not actually what I said. I said that I wanted to respond to the speeches and therefore I would not take interventions at that time. I will of course—[Interruption.] If she would prefer me to respond not to her speech but to an intervention, I will let her make an intervention.
Sarah Owen
I thank the Minister for finally allowing an intervention. He talked about optimism. Does he feel optimistic that the manufacturing industry now faces a 10% tariff on passenger cars and a 22% tariff on vans? Does he believe that we should all be optimistic about that future, or does he believe the reality—that the manufacturing industry faces a cliff edge?
Jesse Norman
If that is the best the hon. Lady can do, she would have been better to wait for my response to her speech. No, the truth of the matter is that this country is engaged in discussions and negotiations with European partners about the circumstances—we export an enormous number of cars, which is an important fact from their point of view as it is from ours—and it would be futile to discuss those matters in public. We all know that none of these negotiations is ever done in public, and that includes commercial negotiations, which Labour appears to wish to be done in public as well.
Let me proceed a little more. The hon. Members for Luton South (Rachel Hopkins), for Wansbeck (Ian Lavery) and for Sheffield, Heeley (Louise Haigh) touched on new gigafactories. I invite Opposition Front- Bench Members to comment further if they wish, because this is a much-heralded part of the Labour strategy, and if the Labour party seeks to subsidise eight new gigafactories, perhaps they would like to put on record how much public money—taxpayer’s money—they propose to spend on that and how it would be funded. We very much look forward to seeing their plans. I will be interested to see whether they bear any resemblance to market conditions or show any signs of doing anything other than immiserating and impoverishing the British taxpayer.
Question put and agreed to.
Resolved,
That this House recognises that the automotive industry is the jewel in the crown of British manufacturing and believes it can have a bright future creating good jobs for people across the UK; regrets that after 13 years of Conservative neglect the UK risks losing this world-class industry, putting thousands of jobs under threat; condemns the Government for its lack of an industrial strategy and the negative impact this has had on investment in the UK’s automotive sector; calls on the Government to urgently resolve the rules of origin changes which are due to take effect in 2024, working with partners across Europe to negotiate a deal that works for manufacturers; and further calls on the Government to adopt an active industrial strategy to build the battery factory capacity needed to secure the automotive sector for decades to come.
Mr Deputy Speaker (Mr Nigel Evans)
I have now to announce the result of today’s deferred Division on the Adjournment, summer, conference and Christmas recess motion. The Ayes were 395 and the Noes were 5, so the Ayes have it.
[The Division list is published at the end of today’s debates.]