Britain’s Industrial Future
Debate between Holly Mumby-Croft and Rachel Hopkins(2 years ago)
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Rachel Hopkins (Luton South) (Lab)
This Conservative Government are incapable of fixing the structural problems at the heart of our economy. Just look at the past 12 years, when we had six different growth plans. In the past six years, we have had five Prime Ministers and, just this year, we have had four Chancellors. Where is the stability? Where is the consistent plan? Instead, there is a track record of wasted opportunities and mistakes. There has been chaos under the Conservatives, who crashed the economy.
Our growth rate since 2010 has been only 1.4%—lower than the OECD average and behind the USA, Canada and Germany. The country faces the lowest growth in the OECD over the next two years, behind countries including Italy and Greece. The Tories have dismantled our economy by entrenching low growth, low productivity and declining living standards. Working people are expected to pay the price of Tory failure.
For too long, industrial policy in the UK has been plagued by short-termism and its vulnerability to political changes. The British public need a fresh start and part of that is reaching a collaborative settlement with the European Union. Many of us voted to leave the European Union to see a strong, democratic sovereign state working in the interests of the British public: a state that works with business to grow the economy, create good jobs and deliver public infrastructure and projects. Essential to that is an ambitious, Government-driven industrial strategy. We need to rebuild British industry and deliver growth that makes all parts of our country better off.
A recent Rebuild Britain article stated that our country needs
“greater self-reliance with jobs, skills, industries and technologies rooted in local areas serving the needs of localities and the wider nation”,
as my hon. Friend the Member for St Helens South and Whiston (Ms Rimmer) outlined so well.
A modern industrial strategy requires building a partnership between the public and private sectors to meet the immense challenges we face. Let us take the automotive industry, which employs 780,000 people in our country and accounts for 10% of total UK exports. Car and van manufacturing can be found in every region of the UK, from the north-east to the east of England, and particularly in my constituency of Luton South, which is incredibly proud of its historical ties to the industry through the local Vauxhall plant.
Despite the Minister’s rhetoric, with the fast approaching 2030 deadline prohibiting the sale of new petrol and diesel cars, unless Britain secures domestic gigafactories for manufacturing batteries, manufacturers will move elsewhere to build their future electric models. Building gigafactories would contribute to meeting net zero, distributing growth across the country and helping to expand automotive exports. It is a win-win-win. However, I heard little about gigafactories from the Minister. Government inaction already means that the UK is far behind other European countries.
The UK has one gigafactory in operation, whereas Germany has five and a further four in construction, not to mention France and Italy, which are set to have twice as many battery manufacturing jobs as us by 2030. Manufacturers such as Vauxhall in Luton need certainty. They need a Government prepared to shape a competitive environment. A consistent policy framework, which businesses can trust, will encourage increased investment over the long term.
As part of our green prosperity plan’s national wealth fund, a Labour Government would part-finance the creation of three new, additional gigafactories by 2025, and we have a target of eight by 2030. Our plan delivers the certainty needed for automotive manufacturers to upscale their operations, in the knowledge that the Government have made a long-term commitment to the industry.
For the automotive sector and many others, we must safeguard the UK’s domestic steel production. While Governments around the world are committing to their domestic industries with long-term strategic investment in green steel production, the Conservatives have failed to invest in the transition, instead attempting to weaken safeguards that protected our steelmakers from being undercut by cheap steel imports and splashing tens of millions on imported steel to build British schools and hospitals.
Rachel Hopkins
No; I am sorry.
Leaving the European Union enables us to increase strategic investment in our key domestic industries; it should not mean stripping back regulations and leaving them exposed to the global market. Labour understands that, and in government we will invest up to £3 billion over the coming decade to green the steel industry. Labour will end the short-termism through our green prosperity plan and by introducing the industrial strategy council, placed on a statutory footing. Labour will work in partnership with business to tackle some of society’s biggest challenges. We are ready to rebuild the country fit for a fairer, greener future. It is time for a fresh start.