Stellantis Luton

Thursday 28th November 2024 Lords Chamber

Statement

The following Statement was made in the House of Commons on Wednesday 27 November.

“With permission, Mr Speaker, I wish to make a Statement on the announcement by Stellantis yesterday on the future of its manufacturing sites in the United Kingdom.

I know that yesterday was a dark day for Luton. This is 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. I wish to outline the steps that the Government have taken to try to prevent this outcome, and how we are going to support the industry and the area going forward.

The Transport Secretary and I found out about the challenges of this site just 10 days after the election. The global chief executive officer told us that he felt extremely frustrated by the lack of action from the previous Government, which meant that his desire was to close the Luton plant. Since then, we have been involved in intense negotiations with the company to try to find a way to keep the site open. Following these initial meetings, in July of this year the company announced its intention to conduct a review of its operations in response to the significant pressures that it was facing in key markets. Following the review, the company set out plans on Tuesday, which will see manufacturing at the two current Stellantis plants consolidated into a single location.

We were, and are, aware that Stellantis has significant excess capacity across Europe. The company’s talk of efficiency and investment elsewhere will of course be positive for its bottom line, but that will come as no comfort to the workers affected.

For more than a century, Vauxhall as a brand has been synonymous with Luton, and we are bitterly disappointed to hear that this relationship looks likely to end. Our number one priority is the people of Luton, who will of course be devastated by this decision. News such as this rips through the heart of communities, sending shockwaves beyond those immediately impacted—through their families, their communities and the businesses that they support. I grew up in a car community and know what it is like when half the street work at the same site.

We have asked the company to urgently share its full plans with us and to work with the Government, so that every single worker who is impacted receives the support they deserve. The Department for Work and Pensions stands ready to help anyone affected with a rapid response service designed exactly for these kinds of scenarios. It provides vital support and advice to both employers and their employees facing redundancy.

I want the House to be aware that we have done everything we possibly can to prevent this closure. My right honourable friend the Secretary of State for Transport and I met Stellantis many times over the summer and again on Tuesday morning to discuss the situation and the acute pressures that the company is facing. We have worked hard to find a solution that would support the business and ensure that people kept their jobs, and we confirmed in writing that we were willing to consider any solution put forward.

However, despite our best efforts, we have been forced to accept that this is ultimately a commercial decision by Stellantis as it responds to wider challenges within the sector. I will be frank with honourable Members: these challenges are not confined to any one company. Car manufacturers around the world are battling with increased costs, supply chain issues and changing consumer demand in a highly competitive, fast-evolving market. Honourable Members will know that last week Ford also announced 800 job losses in the UK over the next three years as part of a major restructuring programme across the whole of Europe. Many of the challenges faced by our car manufacturers are global in nature and they cannot be resolved by UK Government intervention alone.

Although this announcement is not what we wanted or what we worked towards, we must not mischaracterise this. It categorically does not signal a retreat by Stellantis from the UK. The plans announced by the company will also see it investing £50 million as it consolidates manufacturing at its Ellesmere Port plant in Cheshire. Honourable Members will know that Ellesmere Port is the UK’s first all-battery electric vehicle plant, and Stellantis’s decision to bring production of the Vivaro electric van there is welcome. We will of course continue to work closely with the company on next steps of the consolidation process, including the proposal to offer affected workers a relocation package to take up roles at Ellesmere Port.

The investments being made at Ellesmere Port and elsewhere demonstrate that there are real opportunities for UK manufacturing as part of the move to zero-emission vehicles, but the transition has to be properly managed. That requires a Government who are on the pitch—something that the car industry finally has in this Government.

The Government are determined to support automotive companies as they revamp their production lines, adjust their business plans, and develop the technology needed for the next generation of zero-emission vehicles. These cars and vans are greener, cleaner and essential to our net-zero ambitions. Roughly 30% of the UK’s greenhouse gas emissions come from cars, vans and lorries. To tackle that, and wean our country off imported fossil fuels, we need zero-emission vehicles, but the Government are resolute that the transition must be done in partnership between government, industry and, of course, consumers. That is why the Secretary of State for Transport and I are listening closely to the concerns of the automotive industry and the wider sector about the transition to electric vehicles and about the Conservative Party’s zero-emission vehicle mandate.

We held a round table earlier this month to hear directly from major automotive companies, the Society of Motor Manufacturers and Traders, and the charging sector, and in response we will shortly fast-track a consultation on our manifesto commitment to ending the sales of new pure petrol and diesel cars by 2030. We will use that consultation to engage with industry on the previous Government’s ZEV transition mandate, and the flexibilities in it, and we will welcome the industry’s feedback as we move forwards. We want to do everything that we can, together with industry, to secure further investment in the British automotive sector, now and over the long term. That is why in the Budget the Chancellor committed £2 billion to research and development and capital funding to support the zero-emission vehicle manufacturing sector and supply chain.

Also, our industrial strategy will give the automotive sector the certainty that it deserves, and will send a clear signal to global boardrooms that the Government are in this for the long term. We want to invest alongside them, create a policy environment that allows them to prosper, and help them do what they do best: bringing good jobs to every part of this country. Through the National Wealth Fund, we are unlocking billions in private investment in new green infrastructure, including gigafactories, and supporting growth and job creation—not just in the automotive sector, but in the wider economy. We are working with investors to build a globally competitive electric vehicle supply chain in the UK, and so are laying the foundations for growth over the long term.

The closure of the Luton plant by Stellantis is a bitter blow to our car industry, to Luton, and to the workers who made Vauxhall a world-class brand, producing world-class cars and vans, but we must not lose sight of the fact that those vehicles will continue to be designed and built here in the UK, at Ellesmere Port. That matters to me, and it matters to the Government. When I say that decarbonisation must not mean deindustrialisation, I mean it. Winning the race to net zero and having a world-leading automotive sector must go hand in hand. We must never undermine the transition, as the previous Government did, but we will be pragmatic in ensuring that regulation and incentives are working as they should. Contrived cultures wars are not what the industry needs; instead, it needs a partner in Government ready to look at the practical solutions that are necessary. We stand ready to do that, and I commend this Statement to the House”.

12:22

[The Earl of Effingham (Con)]

My Lords, just two days ago, the Prime Minister stated that he will

“get people back to work”.

It is therefore extremely distressing that just 12 hours later Stellantis announced the closure of its plant in Luton with 1,100 jobs put at risk. The loss of these jobs has driven the Secretary of State to come to the other place in an attempt to mitigate uncertainty, but we have to ask: what more bad news is to come?

We hear the Government talk about growth and helping business, but that does not appear to be happening. We are committed to the reality that business matters. It matters for our high streets, our economic growth and, critically, for people’s livelihoods. Although we welcome the Government’s Statement in acknowledging this terrible situation, this process has taken far too long. We hear that, on parts of the Government’s employment Bill, businesses were not even consulted. On the Budget, which will deliver the highest overall tax burden since 1948, the engagement on the national insurance jobs tax was low—a tax raid on businesses of £25 billion that will reduce wages, stifle growth, deter investment and likely bring about a return to inflation and a higher cost of living for everyone.

When in government, we demonstrated unwavering support for businesses during the unprecedented challenges of the pandemic. Understanding the difficulties they faced, we provided 100% business rates relief to the retail, hospitality and leisure sectors, ensuring their survival during the worst of the crisis. Post pandemic, we extended our commitment with a 75% business rates relief policy, helping businesses rebuild and adapt to the new norm. We made it clear that, had we remained in government, this level of relief would continue.

However, the Government have chosen a radically different path. They have slashed business rates relief to 40%—a decision that we believe will be harmful to the recovery of our valued high streets and communities. This has been compounded with unnecessary measures that burden businesses even further. Estimates suggest that the business rates paid by thousands of shops, pubs and restaurants will more than double next year as long-standing relief is tapered off. Altus Group said the cut from 75% to 40% next April will mean an average 140% rise in business rates bills for more than 250,000 high street premises in England alone. The British Institute of Innkeeping has suggested that one in four independent pubs are

“set to fail as they face a wall of taxes from the Chancellor’s Budget”.

We should also recognise family businesses. They are the lifeblood of our economy and growth prospects, but the founder of Family Business United has said its members were shocked by the Budget, saying:

“It’s caused a lot of conversations around succession. The unintended consequences will be reduced investment”.


Another membership organisation, Family Business UK, says it has been “inundated” by inquiries about membership and advice.

The increase in national insurance contributions has already hit 1 million small firms, with analysis from the Treasury and OBR revealing that 60% of the costs are being passed on to working people immediately, rising to 76% in the medium term. This happens through reduced wage growth, price hikes and job cuts. Deutsche Bank predicts that 100,000 jobs will be lost as a direct consequence of these policies.

Despite claims by the Chancellor that there will be no further tax rises, the Business Secretary appears unable to back this assertion. Leading economists from Oxford Economics suggest that further tax increases are inevitable in the new year.

Meanwhile, the latest surveys paint a bleak picture of the economic outlook. S&P Global warns that business output is falling for the first time in over a year, with employment cuts now ongoing for two consecutive months. The CBI reports the sharpest decline in business sentiment in two years, and major investors like Pladis, one of the world’s fastest-growing snacking companies, are questioning the viability of investing in the UK. This sentiment is echoed by over 80 CEOs who recently warned the Government of £7 billion in added costs they fear will lead to job losses and price increases.

The Government are not just failing businesses; they are stifling growth, stopping innovation and deterring much-needed investment. These policies are dampening the entrepreneurial spirit that drives our once great economy, forcing businesses to lay off workers, cut back on expansion and abandon innovation in the face of mounting costs. If we want to foster a thriving economy, we must reverse this course, support businesses and restore confidence in the UK’s potential for growth and innovation.

Just nine months ago, Stellantis committed to investing in its Luton plant making electric vehicles at the site for the first time. Now, the plant is closing, bringing an end to its 120-year history of car production. What steps have the Government taken to engage with the manufacturer along the way? What work is the Minister undertaking with the Department for Work and Pensions to support Stellantis workers?

Stellantis was about to produce electric vehicles, yet just two nights ago the Government’s EV policy appeared to change and allow hybrid vehicles, despite the manifesto’s commitment to banning fossil fuels. Can the Minister clarify the Government’s position on this?

The Chancellor claims taxes will not increase, yet the Business Secretary in the other place appears unable to back this statement. Can the Minister please clarify the Government’s position on whether they will raise taxes? Furthermore, in relation to Stellantis, will taxes need to increase to support the production and adoption of electric vehicles?

We have witnessed the sharpest fall in business sentiment in two years. Economic activity is stalling. We need more than Statements from the Government referring to growth. We need concrete action plans to ignite the desperately needed inward investment into our economy which will benefit everyone.

[Lord Fox (LD)]

My Lords, I feel that the onus is on me to concentrate on the Statement at hand. This is undeniably a sad announcement for a business that stretches back to the start of the previous century. It is a sad day for Luton, which has a proud tradition in vehicle manufacturing. Most of all, it is a sad day for the 1,000-plus men and women who are potentially losing their jobs.

There are people in your Lordships’ House who know Vauxhall better than I do, but although I no longer have a pecuniary interest in the automotive industry, my past work in that sector led me to value the skills and ingenuity of the people around whom I worked. My first question is this. Many businesses in other sectors are crying out for the skills possessed by the people being laid off, but in many cases those jobs are not in Luton. How do the Government plan to help retain those skills and channel those people, who are skilled workers, into well-remunerated, vital jobs? My second question concerns the town of Luton itself. What is being done to support the local community that is being denied an important driver of its local prosperity and economy? The Government need to work with Vauxhall and others to mitigate this, as it will be a major shock for the area.

This sad announcement is at the leading edge of a wider set of issues that face UK vehicle manufacturers and the Government’s plans to electrify personal transport in the UK, their so-called ZEV mandate. There are important questions regarding this ZEV mandate. As we know, 22% of cars sold this year have to be electric vehicles, EVs, rising to 28% next year. If a business fails to meet that target, either it pays a £15,000 fine on each internal combustion car it sells or it buys credits. This is handing cash to usually foreign competitors, such as Mr Musk’s Tesla. This system was put in place by the previous Government. Is it a sensible industrial strategy?

Successive Governments have taken a largely supply-side approach to this, and initially it had some success. Does the Minister agree that unless the Government address the demand side, UK manufacturers will not achieve their mandate targets? Added to that, the previous Government sent out mixed messages that caused many people who might have bought their first EV to opt for one more internal combustion engine. Demand needs to be stimulated. Infrastructure remains patchy, pavement charging is expensive for users—inhibiting the spread of EVs to people who do not have a drive on which to charge their vehicle—and sensible subsidies are being phased out. Can the Minister confirm that her department is now discussing incentives—for example, cutting VAT on EVs—with the Treasury?

Lib Dems have repeatedly called for it to be made easier and cheaper to charge vehicles by rolling out far more residential on-street chargers, ultra-fast chargers at service stations and the electricity grid infrastructure needed to support them. Additionally, VAT on public charging should be cut to 5% and all charging points should be accessible by a bank card, rather than the collection of different smart cards required.

Meanwhile, as demand stalls, the market for UK firms is getting harder. UK car makers are already competing with Chinese EVs that benefit from inbuilt domestic subsidies. In the EU and the US, these Chinese businesses are likely to face high tariffs in future. If both these huge potential markets erect such barriers, the likelihood is that Chinese EVs will flood into their remaining markets. Can the Minister set out the Government’s position on possible UK tariffs on Chinese EVs?

Yesterday the Secretary of State referred to the £2 billion for research and capital funding that was announced in the Budget. Can the Minister tell us the split between R&D and capital for that money? What is the phasing of that money—for example, how much will the industry see this financial year?

In summary, for the UK car industry basic costs have risen, energy costs have rocketed and labour costs will rise following the Budget. In the meantime, UK manufacturers are trying to sell more EVs than UK consumers want to buy, with a backdrop of cheap, subsidised imports. Does the Minister recognise that these are existential issues? When will the industry get to know what the Government’s response to these issues will be?

[The Parliamentary Under-Secretary of State, Department for Business and Trade and Department for Science, Information and Technology (Baroness Jones of Whitchurch) (Lab)]

My Lords, I thank noble Lords for their responses to the Secretary of State’s Statement in the other place. The news on Tuesday that Stellantis was commencing a consultation with staff on the future of the plant at Luton will have been very difficult to hear for the hard-working staff, their families and the wider Luton community. We have asked the company to share the details of its plans with us so that we can put in place the right support across government to help them through this process. Luton has a proud history. While this is disappointing news, we are confident that the town has a bright future ahead. We will work closely with Stellantis, trade unions, Luton Borough Council and other partners to look at the impact of this decision.

I heard the points made by the noble Lord, Lord Fox, about the zero-emission vehicle mandate and how it links to this decision. Ministers met Stellantis within days of coming into office to discuss the pressures it was facing in its business, including concerns on the zero EV mandate, but that was not the only concern it raised. Noble Lords will know that this is a complicated area. The automotive industry is operating under a lot of different pressures, and this is just one of them that we are seeking to address.

The noble Earl, Lord Effingham, asked about consultation. The Statement made clear that the Secretary of State has been in constant discussion with Stellantis and others in the automotive industry to address their concerns. The Secretary of State for Business and Trade and the Secretary of State for Transport are listening closely to the concerns of the industry and the wider sector about the transition to electric vehicles. This included the round table earlier this month to hear directly from major automotive companies, the Society of Motor Manufacturers and Traders and the charging sector. In response, we will shortly be fast-tracking a consultation on our manifesto commitment to end the sale of new pure petrol and diesel cars by 2030, but the question here is the transition rather than the endpoint. I think we are clear about what we want to achieve by 2030. We will use this consultation to engage with industry on the previous Government’s zero EV transition mandate and the flexibilities within it, and we will welcome the industry’s feedback as we move forward.

We want to do everything we can, together with industry, to secure further investment in the British automotive sector now and over the longer term. That is why in the Budget the Chancellor committed £2 billion to research and development and capital funding to support the zero-emission vehicle manufacturing sector and the supply chain. The noble Lord, Lord Fox, asked about this support. The Government are already backing the wider industry with more than £300 million to drive uptake of zero-emission vehicles, and we have also committed long-term funding of more than £2 billion of capital and R&D funding to 2030 for zero-emission vehicle manufacturing and its supply chain as part of a comprehensive offer to attract strategic investment and deliver real growth. There is a real opportunity for the UK from the transition to zero-emission vehicles, and we welcome the commitment Stellantis made to expand its production of electric vehicles at its other plant in Ellesmere Port by adding a second van model.

This is a complicated issue. An expansion of electric vehicle production is going ahead. I make clear that, at Luton, only diesel vans are being produced, so, if anything, production is switching to electric vehicles and not the other way around. Our automotive sector is at the heart of UK manufacturing and the global and British brands that make vehicles here are central to unlocking further growth and investment. Our industrial strategy will address these issues and ensure that further growth and investment is absolutely at the heart of what we intend to do. As the Secretary of State said yesterday, the Government are clear that decarbonisation must not mean deindustrialisation, and that winning the race to net zero and having a world-leading automotive sector must go hand in hand.

The noble Earl, Lord Effingham, asked about the Budget. I do not need to take any lessons from the previous Government, since they left a £22 billion black hole that we inherited. I am sorry to remind them—I know they would rather we forgot that—but let us be honest: that is what we have inherited and have been struggling with ever since. The Budget dealt with that black hole in the Government’s finances, and—as the noble Earl mentioned—over this Parliament the Government will transform business rates into a fairer system that protects the high street, supports investment and is fit for the 21st century. The Government are permanently lowering business rates for retail, hospitality and leisure properties from 2026-27—so we are addressing business rates.

The noble Earl mentioned the employment Bill. I am proud that we are bringing modern employment practices to this country—the previous Government promised this, but it was never delivered. The noble Lord, Lord Fox, asked about imports, and several noble Lords mentioned Chinese EVs. Again, this is a complicated area, but we are closely analysing how imports of Chinese EVs will impact the UK’s economy and industry. It is worth stressing that the UK’s economy and industry differ from other countries in both ownership and markets. We export 80% of what we make, compared to, for example, the US and EU, where a greater proportion of production is sold domestically. So we need to adapt our approach to what is appropriate for our situation here in the UK. When we need to act, we will do so, but any action taken on Chinese EVs has to be the right one for the UK industry.

We are also looking at unfair trading practices on an international basis by supporting global initiatives at the WTO and G7, and domestically through our industry-led trade remedy systems. Here, we already apply 44 trade remedy measures, 28% of which are on China. I hope I have addressed the main points that noble Lords have raised today, and I look forward to further questions.

12:43

[Lord Woodley (Lab)]

My Lords, I declare an interest: three generations of my family have worked at Vauxhall. My sympathies go out to the Luton plant. I thank the Minister for meeting me and the former chief executive of Vauxhall last week to discuss the difficulties surrounding Stellantis.

The noble Lord, Lord Fox, covered most of my points admirably, and I thank him for that. There is no doubt that the ZEV mandate has been and still is a problem, and it needs changing now or this will not be the last problem we have. The plant at Luton is profitable, and it is not 1,100 workers losing their jobs but 4,000-plus when we add the component supporters.

Maybe there are cynics among us who would say that the Government have not tried and that this situation does not have a great deal to do with the ZEV mandate but rather relates to the value of the land that sits alongside the airport at Luton. I would not like to be a cynic, but I sincerely hope—in line with the demands of my union, Unite, for this company to be pushed to rethink its closure strategy—that it is made sure that, if the land is sold, it is sold for industrial purposes and not for housing. I would like to hear the Minister’s comments about that. However, this is not over; we have a lot of work to do and my people at Luton are determined to fight this. I wish them the very best of good fortune.

[Baroness Jones of Whitchurch (Lab)]

I thank my noble friend for those points. As I said at the outset, we very much feel for the people of Luton—this is a terrible time for them. My noble friend is quite right that this is not just about the people who are directly employed in the sector; it has much wider ramifications. At the end of the day, these are commercial decisions, but we are working very closely with Stellantis on how the consultation is dealt with and what support can be given to those affected. There will be the opportunity for some people to transfer to Ellesmere Port, but we understand the impact that this closure will have on the remaining population.

The Government recognise that Luton is a vibrant and very diverse community that has ambitions for the future. We are already investing £20 million in the Stage mixed-use development to help unlock Luton’s town centre regeneration plans, so we are looking at what wider support we can give. In the meantime, it is absolutely right that we focus on those who are affected now, and that we give them support through both the Department for Work and Pensions and further negotiations that we will have with Stellantis, to make sure that we provide the maximum protection for those affected by this decision. However, I will not underestimate the challenge of this, and my noble friend is quite right to raise it. I am sure there will be further discussions about what else we can do.

[Baroness Foster of Oxton (Con)]

My Lords, this is the tip of the iceberg of the obsession this Government have with their punitive net-zero targets. I agree with the noble Lord opposite. I visited Vauxhall Ellesmere Port as a former Member of the European Parliament. I was closely involved with the car industry. As the noble Lord rightly said, this is not just about the 1,100 workers at the Luton plant. They will all have families and people to support, so there will be at least 4,000 people affected just from that plant alone, and that is without the thousands of others who work at the small and medium-sized manufacturers that supply that plant—and that is aside from the vast local economy. That figure of 1,100 at Vauxhall that the Government, and even the newscasts, keep emphasising is very much understated.

Therefore, I ask the Minister: what exactly have the Government put in place to deal with this? Clearly, the trade unions are vehemently opposed and the TUC is opposed—I had a look at the Morning Star, by the way—and I think we would all be extremely interested to know. I ask the Government to start to rethink clearly the consequences of this obsession with these targets that, in my view, are totally unrealistic and will damage the future of this country.

[Baroness Jones of Whitchurch (Lab)]

As I said, we will provide whatever support we can to the people affected. We are talking to Stellantis about how we can identify these individuals and what support they need, and we stand ready with the Department for Work and Pensions to provide accelerated support and help to them. I challenge the noble Baroness’s concern that we should step back from our progress on rolling out electric vehicles, which is part of our net-zero ambitions. I think everybody understands the need for us to meet our net-zero ambitions, which are very important for this country and our climate but also for delivering green jobs for the future.

As we set out in the manifesto, we will support the transition to electric vehicles by accelerating the rollout of, for example, charge points. That ambition was supported in the Budget and was confirmed with £200 million for an accelerated charge point rollout next year. We are working closely with industry stakeholders to promote positive messages around electric vehicles and improve consumer confidence in the public charging network, so there is a lot that we can do to carry on promoting the use of electric vehicles.

Those who have electric vehicles respond with a very positive view of their ownership, so they are popular when people purchase them; we just have to persuade people to make that transition when they purchase new vehicles. As I say, that is important for our climate change ambitions and for jobs in the future. We believe there will be more jobs in future based on the rollout of electric vehicles.

[Baroness Donaghy (Lab)]

I thank my noble friend the Minister for the Statement. This must go down as one of the more difficult jobs that any Minister has to do in any circumstances, so I thank her for the clarity of her replies so far.

My sympathies go to the families of the direct and indirect workers, the shopkeepers and all those members of the community who are always affected by these closures or proposed closures. As I come from a family where most of them worked in manufacturing, we have had that experience. That was in the Midlands, not Luton.

This all brought to mind my noble friend the late Lord McKenzie of Luton, the amount of work that he did to improve the prosperity of Luton and how he would be feeling today and fighting for that community. Can my noble friend the Minister say a little more about the efforts to find jobs and improve the prospects of transfer for those workers who are directly affected?

We know this is a global issue; there is no point in pretending otherwise. When some of us who were members of the EU Internal Market Sub-Committee and then the EU Services Sub-Committee visited various research plants, they showed us the exciting developments that were taking place in car manufacturing. If only we were a bit quicker at developing research into practical production. That is a failure that this country has experienced for a long time. The work and the knowledge are there, and the Minister has indicated that we are further supporting that research. Will she confirm that? There was an implication by the Opposition Front Bench spokesperson that Stellantis was abandoning production. Can she confirm that Stellantis is developing production at Ellesmere Port and that it has not abandoned manufacturing in this country?

One issue where politics and government come in is in the provision of consistency. One of the difficulties that manufacturing has had over the years is that Governments do not provide consistency and long-term objectives. Can my noble friend the Minister assure the House that there will be consistent government policies rather than chopping and changing, so that industry and manufacturers know where they stand for years to come?

[Baroness Jones of Whitchurch (Lab)]

My noble friend rightly reminds us of the fantastic contribution that Lord McKenzie made to this House. I am sorry that he might be looking down and hearing these messages from us, because I know how passionate he was about his town.

My noble friend makes a point about consistent policies. We have learned over many years that industry responds to consistent policies and consistent targets, and it is important that we maintain that. That is why I made it clear that we are still pursuing, and are determined to deliver, our targets for net zero and the contribution that the rollout of electric vehicles will ultimately make to that. That is an important message. We are hearing from the automotive industry, among others, that it wants those consistent policies; as my noble friend says, it does not want us to chop and change, which is not helpful to anyone. The industry makes long-term investment decisions, and we have to support it in that.

On the jobs, the announcement from Stellantis has been relatively recent and we had hoped we would not have to hear that message from it, so we are still in active talks with it and are continuing to talk about the full implications of who will be affected. We will continue to work closely with it and the trade unions and the council on the next steps of its proposals. It is early days, but we are actively pursuing this issue and we take to heart the fact that we need to protect those workers and their future in whatever way we can.

My noble friend mentioned funding. I think I mentioned that we already committed in the Budget to a multiyear funding commitment to the automotive sector, with long-term funding of over £2 billion of capital and R&D funding to 2030 for zero-emission vehicle manufacturers and their supply chains, so we are putting in the money to support that investment. We have a proud history in all this of being at the forefront of R&D, and it is important that we capitalise on that R&D investment.

In the intermediate term, the Department for Work and Pensions is ready to support anyone affected by the decision. It has a rapid response service that is designed to support and advise both employers and their employees when faced with redundancies. Affected employees will be able to access our broad range of support, including universal credit and the new-style jobseekers’ allowance, as well as, perhaps more importantly, access to tools and support to find new jobs in the area. Our priority is to find those people new jobs in the sector.

[Baroness Randerson (LD)]

My Lords, the SMMT says that EV sales overall fell by 30% last month compared with October 2023. This is clearly a critical time in the industry. My noble friend has explained many of the problems facing the UK auto industry, most of them a direct result of the previous Government’s dysfunctional policies, but the Statement emphasises the amount of work that has been going on, which makes the point that the Government were fully aware of the critical condition of the automotive industry. I am therefore concerned that the Government are announcing yet another consultation. They have emphasised how closely they are working with the industry, so they know the problems. They have identified the problems with current policy, and it is essential that action takes place now. Why are we having another time-wasting consultation when the Government tell us they know all the problems?

[Baroness Jones of Whitchurch (Lab)]

As the noble Baroness has said, the problems at Stellantis are due to a variety of factors that have impacted its business across the whole of Europe, not just to do with electric vehicles.

On consultation, the Government’s intention is not to have what we would see as a normal, traditional consultation; this is going to be a quickfire consultation to get everyone around the table quickly to understand what needs to be done. I reassure the noble Baroness that we are not pushing this into a long-term period of time. I anticipate that it will be in the form of round tables and quickly getting all the issues on to the table so that we can begin to address them.

We will look at some of the wider problems that are affecting the industry but also at the impact that the zero-emission vehicle mandate is having. If there are adjustments that we need to make, we can look at them in the rollout of that mandate, but we need to be clear, as I said earlier, that the endpoint is that we need to have clean transport in the future.