Car production across the UK could still be in jeopardy following the Spring Statement, as Chancellor Rachel Reeves failed to announce a package of measures to support manufacturing after several high-profile closures and delays.
Several major manufacturers have already announced plans to close factories, like Vauxhall owner Stellantis with its Luton plant, and BMW delaying investment in its Mini factory in Oxford.
Industry experts have warned that the future of automotive manufacturing across the UK could be at risk if more companies flee their factories and move production to areas where it may be cheaper.
During the Spring Statement, the Chancellor unveiled plans to grow the economy further and save money by introducing welfare reforms, but failed to announce funding for automotive manufacturing bases.
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The future of Britain's automotive manufacturing industry has been put at risk
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Vauxhall owner Stellantis was the first major manufacturer to roll back plans for its UK operations, announcing that its Luton van factory would close and all production would move to its Ellesmere Port manufacturing base.
The decision from Stellantis was criticised by Business Secretary Jonathan Reynolds, who described the initial announcement as being a "very difficult day for Luton".
While Stellantis stated that it would be investing £50million to strengthen the Ellesmere Port plant, it came just months after the brand confirmed it would begin electric vehicle production at Luton in 2025.
Under original plans, Stellantis said the Luton plant would produce the fully electric Vauxhall Vivaro Electric, Opel Vivaro Electric, Peugeot E-Expert, Citroen e-Dispatch and Fiat Professional E-Scudo in both right and left-hand drive.
BMW pauses £600m investment for Mini Plant Oxford amid EV fears
Luton Borough Council said it was "furious" that Stellantis was going ahead with its decision to close the factory, given the impact on working families in the local area and "substantial economic losses".
Councillor Hazel Simmons MBE, Leader of Luton Council, said: "This is heartbreaking news and a devastating blow to Luton and the livelihood of the workers. Vauxhall has been an integral part of Luton's heritage for decades.
"We did what we could to try and stop this closure going ahead and I feel angry that this decision will massively impact the lives of so many people."
More recently, BMW announced it would pause a huge £600million upgrade for the Oxford Mini plant, blaming falling demand for electric cars and "post-Brexit red tape".
The electric vehicle plan for Mini's plant in Oxford is now at risk MINI A spokesperson for the brand said this was being done as a result of "multiple uncertainties" facing the automotive industry, despite telling GB News in February that Plant Oxford was "at the heart of Mini production".
Calum Miller, MP for Bicester and Woodstock, explained how many workers in his constituency were concerned about the future of the plant, noting that "hundreds of pages of paperwork need to be completed" for one car following Brexit.
While Rachel Reeves failed to announce any new changes or funding for the future of vehicle production, there are hopes that more could be done to ensure the UK remains a powerhouse for automotive manufacturing.
The Autumn Statement last October outlined that UK Export Finance would be able to provide financial support to UK companies supplying critical minerals to UK exporters in high-growth sectors such as EV battery production.
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Stellantis previously announced that it would begin electric vehicle production in Luton in 2025 STELLANTISRachel Reeves could still introduce measures to support the industry in the coming months, to run alongside growing support for the Zero Emission Vehicle mandate.
This requires manufacturers to have at least 28 per cent of new car sales come from zero emission vehicles by the end of the year, before targets rise to 80 per cent by the end of the decade and 100 per cent in 2035.
