Jonathan Reynolds
Main Page: Jonathan Reynolds (Labour (Co-op) - Stalybridge and Hyde)Department Debates - View all Jonathan Reynolds's debates with the Cabinet Office
(1 year, 5 months ago)
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Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)
I beg to move,
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.
It is a real pleasure to open this debate on an issue that I know is close to the hearts of many colleagues and constituents. Many Members present represent some of the most iconic names in UK automotive production. For me, it is very much an issue of huge personal significance. Sunderland, where I grew up, is of course renowned not just for its wonderful football team but for the tremendous success of the Nissan plant. I am very proud to say that many friends from my childhood still work in that plant. Of all the great businesses that I get to visit, that is one of my absolute favourites, and I know that colleagues will feel just as strongly about the parts of the automotive industry that they and their constituencies are associated with.
That industry is full of skilled and committed workers, innovation, export success and huge growth potential. However, we have called this Opposition day debate because even the most ardent defender of the Government could not fail to be worried about the health of the sector as it stands. The British car industry should and could be booming, as should the wider automotive sector, yet production has slumped by over a third under the Conservatives. There are huge concerns about a series of major policy failures, including domestic battery production facilities, trade barriers post Brexit, and higher energy costs and other supply chain issues. Although this is an Opposition day debate, I know that those concerns are shared widely across the House, and I hope that, by having this debate, we are able to express the clear political commitment of this House to that crucial sector.
Mark Tami (Alyn and Deeside) (Lab)
My hon. Friend will be aware of the world-class Toyota engine plant in my constituency that produces the highest-quality hybrid engines—one of the first plants outside Japan to do so. Does he agree that hybrid is part of the solution, not, as the Government think, part of the problem?
Jonathan Reynolds
I do not know whether I am supposed to declare an interest, but I drive a Toyota hybrid myself—I have a large family and have to get between Manchester and London, and that is a pretty sound option for doing so. I am aware of the issue that my hon. Friend raises, as is the shadow Transport Secretary, my hon. Friend the Member for Sheffield, Heeley (Louise Haigh). We must be careful to ensure that there is certainty so that that transition we are all seeking can happen. I know that there are particular issues relating to that sector and that side of the industry. We are alert to those issues, and we will, of course, work with him, his constituents and the expertise in this country and beyond to ensure that that timescale is done properly. For many people seeking to make the transition—we are seeing a huge response from the public on that—that is the option that is currently available, particularly for families. We must bear in mind that the solution has to be something that works for all our constituents, and we must be cognisant of their concerns. I am grateful to him for raising that point at this stage of the debate.
I worry at times that the Government, and maybe especially the Secretary of State for Business and Trade, do not have a great deal of time for industry at all. Artificial intelligence, tech and financial services are all crucial sectors, but we should not for one moment think that there is no role for industry. Nor should we ever believe that there is a false choice between services and manufacturing. Support for the automotive sector is not nostalgia. Many of the plants that we will talk about in the debate are the lifeblood of their communities, providing good work and good wages. However, just as in other crucial industries—steel is another good example—I get no sense that securing the long-term future of the sector and managing the transition to a low-carbon economy are priorities for the Government.
That is not just the view of the Labour party; it is what industry itself has been telling the Government. Mike Hawes of the Society of Motor Manufacturers and Traders said at its recent conference:
“We…need a…response urgently”.
Stellantis has warned that:
“If the cost of EV manufacturing in the U.K. becomes uncompetitive and unsustainable, operations will close.”
The automotive industry faces a series of challenges that must be taken seriously. The rules of origin, which are due to come into force from January next year, will require 45% of a vehicle’s value to be made in the UK or the EU or a 10% tariff will be imposed that will destroy most profit margins entirely. Of course, those requirements increase significantly over time. We have a lack of progress on battery manufacturing; Germany already has 10 times the battery-making capacity of the UK. We have wider business challenges, including the highest industrial energy costs in the G7, and rising inflation and borrowing costs.
However, what we have seen from other countries is that none of those challenges is insurmountable. Other countries are pulling ahead. China is home to numerous battery giants such as CATL and BYD, while the United States famously has Tesla. But the EU has also ramped up battery production through initiatives such as the European Battery Alliance and how has 35 battery factories in place. In contrast, the UK is yet to develop a robust battery manufacturing sector, which makes us heavily reliant on imports and risks the long-term presence of automotive production in this country.
I think we all recognise that, over time, vehicles will be built where the batteries are made, not the other way around. We will never be able to match the sheer fiscal firepower of the US Inflation Reduction Act, but we do have advantages—competitive advantages on workforce and skills, and on research and development—and if we had a Government with sufficient political commitment, the future could be very bright indeed.
Gareth Johnson (Dartford) (Con)
Last month, I visited the new Caterham Cars production plant in my constituency, to which the company has had to move because its production is insufficient to meet the demand that it has at the moment. It will take on more employees and apprentices, and it will manufacture more of the vehicles for which it is famous. I remind the shadow Secretary of State that that expansion in the industry has happened under a Conservative Government. Does he welcome that news?
Jonathan Reynolds
I am incredibly happy to welcome that news and the positive story that the hon. Member sets out, but I do not think that any of the success that he has seen detracts from the fact that there are significant policy challenges. The overall number of vehicles has declined, as he will know, and yes, the pandemic and the semi-conductor supply chain issues happened, but that does not remove the need for this House to take seriously the rules of origin, the battery-making capacity and so on. We are not in any way on track. There is also, frankly, the international competitive position. Other countries are simply indicating that they want those industries and that investment much more than we do. It is not so much that the Conservative party has turned up to a gunfight with a knife, but that it is not showing up to the fight at all.
What we need is a plan of action. That is what the Labour party has developed, and it is what we want the chance to implement should we form the next Government. Our plan addresses battery capacity and charging infrastructure, as well as key issues such as planning and grid regulation. We are up front about the challenges that we face, but we are ambitious for the future. Frankly, that is nothing short of what is required. Our plan starts with having an active industrial strategy. I know that some Conservatives do not like that kind of terminology, but I say simply that all countries need an industrial strategy. To go back to the example of Nissan, that was part of an explicit strategy—by even Margaret Thatcher’s Government—to attract automotive expertise to the UK. The absence of any coherent modern industrial strategy is hurting investment into the UK.
Other countries are simply pushing ahead, recognising that the challenges that we are facing have to be met nationally by Governments with skin in the game. Industry is crying out, first, for stability, and secondly, for a partner and some clear policy signals. That is exactly what it will get from a Labour Government. That is why we have said that we would put the new Industrial Strategy Council on a statutory footing, giving some reassurance that the instability of the Conservative years is at an end.
Our green prosperity plan will part-fund the battery-making gigafactories that are so essential to our future. That will be catalytic public investment to unlock the much greater sum of private investment we need. The reality is that no battery factory in the world has been developed without that kind of Government commitment. We know that the Government are in talks with some firms about potential investment decisions, and I say in good faith to Ministers, “That is good. We want you to succeed.” Where those companies need assurances from the Opposition should a change of Government occur, we will of course have those talks. However, it would be far better and a far better deal for the taxpayer to make those offers publicly, and to be negotiating with a range of potential partners to get the best deals for Britain, because domestic battery production is so important.
Mike Amesbury (Weaver Vale) (Lab)
Could the shadow Minister clarify how many gigafactories this Government have enabled to be built in the UK?
Jonathan Reynolds
I am more than happy to. My hon. Friend will know that we currently have one facility, which is the Envision facility at Nissan in Sunderland. The overall number will depend on how big those factories are, but broadly we will need three to four in the interim, and by 2040 we will need eight to 10.
Germany, for instance, already has four to five gigafactories up and running. A further four are almost up and running, and it is in talks for a further advance on that position. The sense is that Germany is genuinely 10 times ahead of us in that capacity, and while people might think, “Well, Germany is a country with incredible automotive history, reputation and strength”, there are other countries that we are already losing out to. Spain, for instance, has a very active industrial strategy when it comes to the automotive sector, and eastern Europe has had tremendous success in that area. Because automotive is about regional markets, simply seeing what other countries are doing will have huge consequences for the potential for investment in this country. Crucially, we should be playing to the UK’s strengths in areas such as research and development, like the fantastic programmes at the UK Battery Industrialisation Centre in Warwick, which my hon. Friend the Member for Sheffield, Heeley and I were able to visit recently.
Jonathan Reynolds
I thoroughly agree—the scale of ambition that I see around the world daunts me when I compare it with this Government’s ambition. There are some incredibly exciting technologies out there, including sodium-ion batteries that would reduce our dependence on lithium and almost certainly cut costs in battery production. Hydrogen is clearly going to be extremely exciting, as are fuel cells, and there are markets for off-road vehicles that could be huge potential markets for the UK. We should also not forget buses: that is an area in which new technology could contribute to things like cleaner air, as well as better transport.
Greg Smith (Buckingham) (Con)
Does the shadow Minister agree that on top of battery innovation and hydrogen innovation, the UK is leading in another field: that of synthetic fuels? However, giving the automotive sector a really strong future in this country involves a whole-system analysis, not just of how the vehicle is manufactured but how the energy that will run it is manufactured. That involves looking again at the zero tailpipe standards that are coming in, because if we have that whole-system analysis, we will get to green technology and greener transport but with a whole-picture effect.
Jonathan Reynolds
I agree with part of what the hon. Gentleman has said. I agree about the whole-system analysis: many parts of the decarbonisation journey that industry will need to take on will be a much bigger question than simply unplugging one form of old fossil fuel technology and plugging in another. For instance, the steel industry will have to think about scrap if it is to make the conversion to electric arc furnaces; and if we are to move towards synthetic fuels, we will clearly have to look at where the feed stocks are coming from.
However, one of the most defining features of the past 13 years—I say this without any kind of partisanship—has been a series of very ambitious targets from this Government in areas that relate to decarbonisation, but with no real means to deliver them. That target is then pulled away, and confidence in the British state to decarbonise falls apart. I am thinking particularly about the famous “cut the green crap” comments from the former Prime Minister, David Cameron, regarding home insulation. When we talk about changing existing Government policy, we should not underestimate just how little confidence the international business community has in this Government’s promises at times. Broadly, the approach has been very ambitious targets but with no means to actually deliver them, which undermines the case.
Barbara Keeley (Worsley and Eccles South) (Lab)
My hon. Friend is making a very effective speech. As he is talking about targets, will he come on to the roll-out of charging points? My constituency has three motorways in it and incredibly high levels of pollution. We need to remove all the barriers, both to net zero and to reducing that pollution. Does my hon. Friend agree that constituencies in the north such as mine need that situation addressed? It is shameful that, as I understand it, more chargers were installed in Westminster this year than across the whole of the north of England. We in the north have those issues of pollution, and we need to move faster in addressing them. My hon. Friend may be planning to come on to that point, but it is an important one.
Jonathan Reynolds
I am incredibly grateful to my hon. Friend for making those points. The approach of the Front Bench—from her, from me on industrial policy, and from my hon. Friend the Member for Sheffield, Heeley on transport policy—must bring those two things together. We need the policies in place that will make this country a world leader in the production of vehicles and ensure that it also works for consumers. She raises the fact that there are more charging points in Westminster—I know my hon. Friend’s constituency, which is not far from mine—and the difference between comparable parts of this country, north and south, in the level, density and availability of chargers is unthinkable, let alone in comparison with Norway, for instance. Not only do we not have enough chargers but grid, maintenance and connection issues often mean they are out of order. I absolutely assure my hon. Friend that when we as a shadow Cabinet and a potential Government think about these issues, both vehicle production and consumers are paramount. Clearly, consumers want to purchase electric vehicles—that is the growth part of the market—but too often we do not have the infrastructure in place. It cannot be some form of novelty. I have driven electric vehicles around Greater Manchester when it was something of a novelty—I could get access to chargers and, at times, preferential parking spaces near Deansgate, which is no small thing—but for mass market usage, neither the policies nor the infrastructure are yet in place. That needs to be widely recognised.
On the international trade position, it was always imperative to have a domestic battery industry, but it has become an existential issue because of the Government’s approach to our trading relationship with the EU. As discussed in relation to regional export markets, eight in 10 vehicles made in the UK last year were exported, so it is widely recognised that the impending cliff edge in the trade and co-operation agreement with the EU on rules of origin is a serious challenge to the future of the sector in the UK. The Government have been far too slow to realise the scale of that danger, and while they may promise that a deal is coming soon, I am afraid that “soon” cannot come soon enough. Major UK manufacturers including Stellantis, Jaguar Land Rover and Ford have all warned that a failure to reach a deal would cost jobs in the UK.
It has been two and a half years since the trade and co-operation agreement was formally signed. That is precious time that could have been used to plan and prepare, but those are two words that this Government often fail to understand. What have they done in that time? They have not secured investment in battery capacity. They have not improved our relationship with our biggest export market, and they certainly have not worked with industry to find solutions.
We know that a breakthrough is needed, and we would use our plans to make Brexit work to ensure that the rules of origin work for British manufacturers. We cannot achieve a compromise without working with our partners in Europe, and I believe that only Labour can be that good-faith partner. Our plan to invest in battery capacity, alongside compromises on the rules of origin, is the sensible way forward to meet our climate objectives and trade obligations and retain our industrial base.
We will make the UK a clean energy superpower by 2030, with net zero carbon electricity lowering costs for the UK car industry by no longer leaving UK industry prone to the volatility of international gas prices, alongside better grid connections and planning reform to ensure that “made in Britain” does not become a thing of the past. That is the prospectus for action we need. Right now, this country needs some optimism. The mantra of this Government—that this is as good as it gets—is as depressing as it is wrong.
Jonathan Reynolds
I think those companies must have seen the opinion polls and are wondering whether a Labour Government are coming, if there is as positive news as that could be. I would simply say to all Conservative Members that, on any aspect of industrial policy, there is too often on their side a desire to pick individual stories or statistics and try to pretend that substantial and significant issues do not exist. If we talk to anybody reasonably objective in this sector, they will point out—on battery production, rules of origin, charging infrastructure, industrial energy prices—that there are real challenges and they require some serious engagement from the other side, which to date has not been forthcoming.
Matt Western (Warwick and Leamington) (Lab)
I would like to add to that comment—my hon. Friend is making an excellent speech, by the way—what was said at the industry conference held by the Society of Motor Manufacturers and Traders a couple of weeks ago. The industry was speaking as one, and I am afraid it was critical of the Government, saying, “All these years on, remember that Baldrick at least had a cunning plan. Sadly, the Government don’t.”
Jonathan Reynolds
I followed that conference very closely—my hon. Friend the shadow Transport Secretary spoke at the conference, and I have spoken at that conference in the past—and that was absolutely the sentiment. Perhaps humility does not come easily to Conservative MPs, but I ask them to take on board those genuine views from the industry on the situation we find ourselves in.
The automotive sector could be a practical illustration of the transition to new jobs and new opportunities that we all want to see. We have laid out our plan for the sector. Some Conservative colleagues may disagree, but let us have from them some alternative proposals, because the status quo will not do. Our motion is a plan to deliver £30 billion in economic growth in the parts of the country that need it most. It is a plan that could create 80,000 additional jobs—good jobs of the kind that people can raise their family on. It is a plan for Britain that would mean we once again lead the pack and feel confident for the future. I believe the choice is clear—a plan under Labour or further decline under the Conservatives—and I think we all know whom the public would prefer behind the wheel.
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.
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.
Richard Thomson
I share my hon. Friend’s concern. [Interruption.] There is some sedentary chuntering—if the hon. Member for Bosworth (Dr Evans) gives me a chance to respond to the intervention, I will gladly give way to him if he has a substantive point to make. We can still see the industrial scars of the devastation reaped by the sudden closure of the Linwood factory in 1981. What we do not see quite so readily but is still every bit as debilitating is the impact on families who lose opportunities to participate fully in the economy. There is a very high price associated with getting this wrong, which goes far beyond simply not seeing factories on greenfield sites.
The motion speaks about a lack of a meaningful UK industrial strategy, which is a fair accusation. It calls for the need to
“urgently resolve the rules of origin changes”
that are looming in 2024. At this point, I am bound to observe that both Labour and the Conservatives make grandiloquent promises about how each would seek to harness the power of the British state to transform the economy and, with it, the lives and opportunities that follow. For the two years in every three over the last century that the Conservatives have had power, or the one year in every three that Labour has had power, neither has done that.
I mentioned the various iterations of Conservative industrial strategy; I have read Labour’s industrial strategy, which carries the signature and many photographs of the hon. Member for Stalybridge and Hyde (Jonathan Reynolds). In many ways it is a very fine document, but when it comes to the impact of rules of origin, as with much else, a position promising to make Brexit work means absolutely nothing. I say this as gently as possible: Brexit can never be made to work, either in its current form or in any conceivable variant. As long as making Brexit work is part of the strategy, no matter which party it belongs to—Labour or the Conservatives—it will be left with a slow puncture.
Richard Thomson
I was coming to the end of my remarks, but I will give way since I mentioned the hon. Member.
Jonathan Reynolds
I understand the strength of feeling on that point and how, when we have this conversation, many will revert to that Brexit argument. However, I ask the hon. Gentleman to recognise not the political case but the economic one: we have the lowest business investment in the G7 under this Conservative Government. We want to provide a stable platform for that investment to increase in gigafactories, R&D, hydrogen and all the things we want to see, but reopening that debate—and the independence debate—is not the stable way to realise those opportunities in future. If we spend all our time doing that, we will find that other countries get to a point that we will never be able to catch up with, because we did not focus on the real opportunities at hand.
Richard Thomson
I thank the hon. Gentleman for that intervention, but I could not disagree more. This is not a stable platform. The Conservatives are offering us the stability of decline, and it seems that Labour is embracing that for fear of frightening its former voters in the red wall. It seeks to get them back not with honesty, but by telling people what it thinks they want to hear. It should have the intellectual honesty to recognise that the real debilitating impact on securing future growth opportunities is not from the issue he mentions, but from the barriers that have been imposed. To hear that Labour intends to further padlock them in place will depress a great many people the length and breadth not just of Scotland but, looking at opinion polling, far beyond.
I regret to say that although the motion contains many fine words—it is certainly a fine document in many respects from Labour—while it remains saddled to the Brexit the Conservatives have given us, it will not do anything to tackle the fundamental problems it diagnoses.
Dr Luke Evans (Bosworth) (Con)
I rise to speak in this debate because it is called “Supporting the Automotive Industry”. With the sense of humility that the Opposition asked for, I read the motion. It states:
“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”.
Then it falls apart, because it states that it
“regrets that after 13 years of Conservative neglect the UK risks losing this world-class industry”.
I thought, gosh, as a matter of humility, have I missed something? What have the Opposition been talking about that I have so obviously missed? So I thought I would do a quick search on Hansard to see when the automotive industry has been talked about. The Leader of the Opposition, the right hon. and learned Member for Holborn and St Pancras (Keir Starmer), has mentioned it once since 2015, and that was when he was quoting my right hon. Friend the Member for Surrey Heath (Michael Gove) confirming that the automotive sector was ready for Brexit. The shadow Secretary of State for Transport, the hon. Member for Sheffield, Heeley (Louise Haigh), has never uttered the words “automotive industry” in Hansard. To be fair, the shadow Secretary of State leading the debate, the hon. Member for Stalybridge and Hyde (Jonathan Reynolds), has mentioned it six times, so once every two years, which is really useful to note.
Jonathan Reynolds
I am sorry, but that is not credible. Was the hon. Gentleman in the Chamber for the urgent question when Britishvolt, the flagship automotive battery policy, fell apart? Was he there when Stellantis gave evidence to the Select Committee or when we asked two urgent questions? On both occasions, the Government objected to us using Parliament to raise those important issues, so I am afraid I do not find his position credible.
Dr Evans
That will lead me on to what I want to talk about, which is the positive side of this. Britishvolt wanted to have its headquarters in my constituency, and I met it to see what would happen. The Government protected £100 million of British taxpayers’ money. If that had gone to the wrong place, the shadow Secretary of State would have been at the Dispatch Box lambasting the Government for frittering away taxpayers’ money, so I will take no lectures on that point.
I am here to talk about the positive side of the automotive industry. In the east midlands, we are very proud of what we have to offer in the manufacturing industry. It has been through a tough time for the past 50 or 60 years, but we are making real progress. Only recently, Bosworth was noted as a net zero hotspot and described as
“connected areas with concentrated net zero activity, where businesses create jobs and add to the local hotspot’s economy”.
That means better paid jobs, better opportunities locally, better local businesses and, nationally, 840,000 jobs. Within that context, the average wage for someone in the industry is £42,600, compared with the national average of £33,000.
What does that look like in reality on the ground? That is what I want to spend a few minutes talking about. On Monday, I was at a place called Horiba MIRA. For those who do not know it, imagine the silicon valley of the automotive industry. Imagine the Google complex of anything to do with the car industry. From designing to manufacturing to testing, it all happens in this one space. It is unique in the world in what it can do. It was supported by Government from 2010 all the way through, with investment to grow as an enterprise zone, and was then allowed to flourish and attract international investment from the likes of REE, an Israeli company, bringing hundreds of millions of pounds in and bringing 300 jobs with it.
That is just a start in describing what is going in the automotive industry. I agree with those on both sides of the House who have said that this really is a revolutionary opportunity. Everyone in the world is trying to work out the best way to take it, and the best way is to support our research going on right here, including in happening in my constituency. MIRA Technology Park has over 600 high-value jobs, with specialisms in anything from autonomous car driving to battery technology, road safety and defence. Those technologies are all being tested right here in the UK. In November 2022, Horiba MIRA’s assured connected autonomous vehicle testing won the test facility of the year prize at the Vehicle Dynamics International awards, based on innovation in products, teams and technology. In June 2023, MIRA won an award from Jaguar Land Rover at its seventh annual global supplier excellence awards, demonstrating outstanding achievements in JLR’s global supply based on
“customer love unity, integrity, growth, impact.”
That all sounds very good, but when I ask my constituents whether they are aware of what is going on in our constituency, they do not really know what MIRA is. That is part of why I am so pleased to speak in this debate, because actually the UK is fantastically good in this space. It is not just about creating jobs—at MIRA, someone can go from being an apprentice all the way through to a PhD level qualification on cyber-security in cars. It is also innovating for the future to get to net zero and create energy security. It has been partnered by local enterprise partnerships, investment zones and the Midlands Engine to help drive investment, change policy and bring inward investment from the international community.
On Monday, I was very proud to welcome the president of Horiba, Mr Horiba. We saw two things: the research it is doing with Ceres on hydrogen battery technology to allow us to have battery technology in houses and vehicles; and driving simulators. If someone wants to break into the industry and is designing a car, they can now use a simulator to test how it will handle, what it will look like, and how it will feel in terms of comfort and safety. All that can be done simply in a computer-generated room, which takes out the need to make 50 to 100 prototypes and collapses it down to about one or two. But Horiba does not just have dark rooms with TV screens—there is an entire race track to test every single condition one can think of that a car might need to go through. That is right here in our country, leading the world on the international stage on how to bring in investment. I am really pleased that we can talk about that.
There is more in my constituency. We have Triumph Motorcycles. For those who do not know, Steve McQueen leapt away on a Triumph motorcycle. James Bond was seen going over the rooftops on a Triumph motorcycle. I am very proud to have Triumph Motorcycles’ headquarters in my patch, creating over 1,000 jobs. In the last three years, it has broken records for the number of bikes it has sold, which has gone up by 30% across the world. All across America and into Latin America, it is breaking into the industry and the market. That means high-end innovative jobs designed and manufactured right here in my constituency. This is the kind of thing that Members on both sides of the House are not good enough at talking up and talking about. That level of innovation and finishing makes a huge difference to my local community.
I want to mention two other businesses. Flying Spares, based in Market Bosworth, is a second-hand remodelling firm for cars such as Rolls-Royces. If someone need a part, it will ship it anywhere across the world. That is an innovative way of creating longevity and helping achieve net zero by recycling our high-end products. JJ Churchills is a fantastic advanced manufacturing aeronautical and defence agency, which employs 110 people, with high-end apprenticeships, in the middle of the countryside. This is happening right in my constituency—it is 85% rural, yet I have businesses like that.
The final jewel in the crown is Caterpillar, which last year made £59 billion worth of sales worldwide. The company, which has 1,000 people working in Desford in my constituency, is looking at making green hydrogen-fuelled electric tractors, forklift trucks, dumper trucks—you name it. I have had the pleasure of sitting there and driving Caterpillar vehicles in Arizona remotely. That is the sort of innovation that we can do. Caterpillar is sourcing its manufacturing right here in Desford, and has been for 70 years.
I mention all this to highlight some of what is going on in my small area of Leicestershire. People choose the UK because of the skillsets we have, the tech environment we create, the regulation we have in place and our stability in the global market. That is why they come here. Does that mean we should shut up shop, because we have done enough? No, of course not. It is important to make sure that there are signposts and avenues so that people know where to invest. When I speak to the likes of the Midlands Engine, which is looking for ways to drive investment in the 11 million people in its area, among the questions that come up are: where should businesses go, and how do they connect with Government?