‘Levelling up’ pledge not helping automotive sector

The Conservatives have been accused of turning their back on their ‘levelling up’ pledge, as new analysis finds that three in four jobs in the struggling automotive sector are in places they promised to protect.

As the impact of coronavirus continues to threaten jobs and businesses in the sector, Labour says that, without urgent action, the government risks turning its back on communities and workers in seats they promised to protect across the North, Midlands, Yorkshire and Wales where three in four automotive jobs are found.

The automotive sector has been one of the worst affected by coronavirus, with production down an astonishing 99.7 per cent in April. The latest Business Register and Employment Survey shows that 76 per cent of direct employment in the automotive industry is in the above areas – 127,000 people out of 166,000 in Great Britain as a whole.

According to the Society of Motor Manufacturers and Traders, production in June was down around 50 per cent when compared to the year before, whilst new car registrations have been recorded as being down 97 per cent.

Overall, car production was down by nearly half in the first half of the year, with the SMMT estimating job losses of over 11,000. For 2020 as a whole, the SMMT expects production to fall by nearly a third.

Labour is calling for the government to explore the possibility of fast tracking measures from the Automotive Sector Deal or Road to Zero strategy, with a focus on creating green jobs and ensuring the UK leads the way in the decarbonisation challenge at the pace and scale the climate emergency demands.

Lucy Powell, Shadow Minister for Business and Consumers, said:  “The UK’s world-leading automotive industry has been rocked by coronavirus and livelihoods are on the line. But Ministers won’t listen to reason and are refusing to recognise some sectors have been hit harder than others. They must urgently target support at the sectors that need it with a focus on creating skilled, green jobs – and do right by the communities across the UK they promised to protect. Anything less would be a betrayal of many communities which helped get Boris Johnson elected.”