Luton faces a significant economic and cultural setback following the announcement of Stellantis’ proposal to close its Vauxhall van plant, with Secretary of State for Business and Trade Jonathan Reynolds describing the decision as a “dark day” for the town, which has a century-long legacy of vehicle manufacturing.
The closure, if finalised, will affect approximately 1,100 jobs, as production shifts to Ellesmere Port in Merseyside, which Stellantis, the parent company of Vauxhall, is developing as an electric vehicle hub. The proposal has sparked concern among unions, local leaders, and the wider community, given the plant’s integral role in Luton’s industrial identity.
Unions and employees have expressed dismay, with Unite calling the proposal a “slap in the face” to workers who have upheld Vauxhall’s operations for generations. Many fear a ripple effect on Luton’s economy, with supply chains and local businesses likely to be affected.
In an address to the House of Commons today, Mr Reynolds said: “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.”
He added that Stellantis’ “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.”
Mr Reynolds continued: “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 shock waves 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.”
After Prime Minister’s Questions today (Wednesday) in the House of Commons, Luton South and South Bedfordshire MP Rachel Hopkins asked Prime Minister Sir Kier Starmer how the government would support workers in Luton.
She said: “The proposed closure of Luton’s Vauxhall van plant by Stellantis is devastating news for our town, with over 1,000 jobs at risk and the town’s future prosperity threatened. Can the Prime Minister assure me that there will be a cross-departmental response to support the automotive sector and, importantly, good, skilled jobs in Luton?”
The Prime Minister responded: “Yes, I will. I thank my honourable friend for raising this, at a difficult and uncertain time for workers and constituents in Luton, and their families. That is why we are working with the industry. There will be a statement later today, and it is important that we do whatever we can to support these communities.”
The Secretary for Business and Trade also accepted Ms Hopkins’ invitation to visit the Vauxhall site on Kimpton Road, adding: “I can also promise her the full deployment of my Department and, indeed, all of my colleagues across government to provide whatever help is required.
“We are in conversations with Stellantis – as is the union, I believe – about the details of the package that will be presented to the workforce, but of course, I will engage closely with my honourable friend and with my honourable friend the Member for Luton North (Sarah Owen) to make sure that package is to the maximum benefit of her constituents and the wider area.”
The Luton North MP said she welcomes “any support for Vauxhall workers and their families, who are understandably devastated by Stellantis’s decision, especially this close to Christmas.
“It follows the closure of the SKF plant in Luton North earlier this year after a century of manufacturing. Like SKF, Vauxhall is, or was, synonymous with Luton.
“Stellantis’s callous decision will impact our whole town—our whole region, even—so what support will be offered, not just to the skilled and dedicated Vauxhall workers who are losing their jobs but to our town as a whole, to cope with the loss of this manufacturing giant that Luton helped build?”
Mr Reynolds reiterated his “promise” of support that will be made available, adding: “I do not want to minimise the impact of this decision in any way, but I believe my honourable friend’s area is a place of considerable economic strength, with firms in the engineering, aerospace and air travel sectors and in the creative industries. There is a lot to be optimistic about for the future, but I recognise that that does not take away the bitterness of this particular blow for Luton at this time.”
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