Budget Resolutions and Economic Situation

Jack Dromey Excerpts

Tuesday 9th March 2021 Commons Chamber

[Jack Dromey (Birmingham, Erdington) (Lab) [V]]

Erdington is rich in talent, but is one of the poorest constituencies in England. Levelling up matters, but it is not happening in Erdington. Our high streets fund bid was rejected. Services that have already been badly hit, from social care to street cleaning, are facing fresh austerity cuts. Twenty-seven nursery schools in the most deprived areas of the city now face closure.

We now have the proposed closure of the GKN factory in my constituency. GKN is one of the oldest engineering companies in Britain. It is 262 years old. It manufactured the cannonballs for the battle of Waterloo and helped build the Spitfires during the war. It was taken over three years ago by Melrose and now faces closure. There are 519 highly skilled workers who work in that plant.

What happened was utterly outrageous. Crucial now is what happens. If the company goes to the wall, 519 jobs go, but what also goes are many more jobs in the supply chain. That would be bad news for British workers and bad news for British manufacturing, because we would lose the capacity to make high-value components. Those jobs will be exported to continental Europe. That is why I welcome the constructive discussions that have taken place with the Secretary of State, and I say to him that the test of the Government in the next stages will be what they say and what they do, because the solution could be positive: avoiding the closure of that great historic marque with 50 years of manufacturing for the automotive industry.

In conclusion, on manufacturing more generally, we have 300,000 manufacturing jobs in the west midlands, which is the heart of England. There were some welcome moves in the Budget—of that there was no doubt—but they went nowhere near far enough, because if one looks at our continental competitors, their Governments are investing on a grand scale, far in excess of what is happening in our country. For example, the French Government are putting £15 billion of investment in aviation and automotive. That is four times more than what is happening in this country. Sixteen gigafactories are being established in continental Europe, but there is just one in our country, and we hope the second one will be at Coventry airport.

Much more needs to be done, because manufacturing is key to the recovery of our economy. It is key to the recovery of Britain. The Government have gone nowhere near far enough. What they need to do at the next stages is to back British manufacturing.