LUTON is likely to face a substantial hit to its economy in the form of job cuts and reduced consumer spending following Stellantis’s decision to confirm the closure of the Vauxhall plant in the town.
Support initiatives for workers at the factory in Kimpton Road and for the wider Vauxhall supply chain are under way, led by Luton Council and Bedfordshire Chamber of Commerce.
These include help in the search for new employment and working with businesses in and around Luton to place Vauxhall employees with relevant skills. Luton Adult Learning is already putting together upskilling, reskilling and retraining programmes.
“Although we all anticipated the announcement, it is still difficult to accept, given Vauxhall’s longstanding part in Luton’s heritage and identity,” said Bedfordshire Chamber of Commerce’s chief executive Justin Richardson. “We are now working closely with local stakeholders and businesses to provide support for everyone affected by the closure.”
Luton Council had been working with the town’s MPs, trades unions and the government on what they believed to be viable ways to keen the factory open.
“This is heartbreaking news and a devastating blow to Luton and the livelihood of the workers,” said council leader Cllr Hazel Simmons. “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.
“We want them to know we are behind them and will support them all we can.”
The government has asked Luton Council to form a locally led task force to coordinate the local response to the economic impact of the plant closure.
Business and Trade Secretary Jonathan Reynolds said: “We have a longstanding partnership with Stellantis and have engaged with them extensively throughout this process. We will continue to work closely with them, the trade unions and Luton Council to put in place measures to support the local community.”
The council has begun discussions with Stellantis over the potential purchase of the Kimpton Road site in order to ensure that any future development will be of economic benefit to the town.
“This will impact the whole town,” said Hazel. “With job losses at the plant as well as the wider supply chain, it will have a huge impact on the local economy but we will recover from this.”
Despite the closure, Bedfordshire Chamber believes that the county’s economy has reason to be cheerful.
Justin Richardson said: “Despite this setback, there are significant opportunities on the horizon for Bedfordshire, including the planned expansion at London Luton Airport and the upcoming decision on Universal Studios – both of which could offer a major boost to our region’s economy.”
Sharon Graham, general secretary of trades union Unite, branded the decision to close the factory as a “betrayal”.
She added: “Once again, UK workers have been exposed to a company willing to sacrifice our manufacturing base for fleeting gains – this has to change. We urgently need an industrial strategy that puts the national interest at the heart of decision-making in manufacturing, as they do in other countries.”
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