Labour says it would create more than 80,000 jobs in the industry by helping the creation of gigafactories for the electric vehicle industry.
The party said its plans to part-finance eight gigafactories would help create 80,000 jobs around the UK and power nearly two million electric vehicles. Labour said its plans would create 28,000 jobs in the West Midlands, 11,000 jobs in the North West, 6,500 in the North East and 4,500 in Wales.
The UK currently has only one gigafactory, the Envision AESC plant next to the Nissan factory in Sunderland. Plans for the second gigafactory - the Britishvolt plant at Cambois, Northumberland - fell apart earlier this year after the company behind the project ran out of money. Britishvolt has since been sold to Australian firm Recharge Industries, which is trying to revive the 3,000-job, £4bn project.
Read more : losses narrowed at Jaguar Land Rover
Labour leader Sir Keir Starmer - who will aim to show his party’s business-friendly credentials with an address the British Chambers this week - has already pledged to deliver the highest sustained growth in the G7 if Labour does take power after the next general election, while the party also plans to put an industrial strategy council on a statutory footing as part of efforts to boost British industries.
Shadow business secretary Jonathan Reynolds said Labour would “make Brexit work” and deliver a “modern industrial strategy”.
He said: “Labour is ambitious for Britain’s future, and our plans will bring investment and jobs to the industrial heartlands we are so rightly proud of. Britain is a fantastic place to work, grow or start a business, but firms need a government that will fight for them in an increasingly competitive global race.
“Labour will never be complacent about our industrial base. We have a plan to ensure the jobs of the future are here in Britain. Labour will build the strong economic foundations business needs to succeed: growing our economy with a modern Industrial Strategy, our plans to make Brexit work, reforms to the apprenticeship levy and business rates to give firms the flexibility they need.”
Setting up battery gigafactories is seen as key to the future of the automotive sector as sale of new petrol-fuelled vehicles is due to be ended in 2030.
The Government had pledged £100m towards the Britishvolt project but never paid any money as the company was unable to meet any of the milestones set to ensure the public funding was not lost. Government Ministers have said that the funding is still available, but the failure of Britishvolt to bring its plans to fruition showed the difficulty of raising enough money to build gigafactories.
The Government is under pressure to respond after the US Inflation Reduction Act offered big subsidies for companies in green industries, with the EU set to follow suit. Business and Trade Secretary Kemi Badenoch has hit out at Labour’s plans, however, and said the Government has supported the automotive sector, as well as other industries.
“The Government has already provided billions in support for the UK automotive sector and other industries, and our forthcoming plan for advanced manufacturing will further cement this Government as one that backs the future of industry in this country,” she said. “By contrast, the only plan the Labour Party has is one that will wreck the economy by sticking tens of billions of pounds on the Government credit card and leave no money left, all over again.”
READ NEXT:
