Closure of Arla factory in Settle could 'kill' town

BBC News

10-05-2025

The loss of a factory employing 130 people has hit hard in a community where "everyone" knows someone who has worked there.Dairy co-operative Arla intends to shut its creamery in Settle, North Yorkshire, by 2026 and transfer production to Lockerbie in Scotland.Julian Smith, Conservative MP for Skipton and Ripon, said Arla bosses "didn't even look at" alternative proposals to keep the site open, which the company denied.The BBC visited Settle to find out how Arla's departure will impact the town.
Peter Thornton, director of Settle Coal, which has premises next door to Arla, said the plant had "been here as long as some of the hills".The 56-year-old said a dairy first opened on the site in 1965, and had always traded with his company."There'll be a lot of small local businesses that will miss Arla, ours particularly."
Anne Carr, who was serving lunch to workers from her mobile catering van on the industrial estate, remembered when "all the employees were local people, local families worked there, it was owned by local people".She said the closure would make a "big difference" to the area and likely impact her business, Anne's Butty Van, which is opposite the creamery."It's just the uncertainty of it: what is going to happen?"
Ms Carr said some people "have known it be the dairy for such a long time"."Everybody knows somebody that's worked at the dairy at some point or another. It's been one of those go-to places," she said.
'Dying town'
Opinion was split among three men buying sandwiches, none of whom wanted to be named."It's outgrown its situation," one said, citing issues with the local water supply and an unpleasant odour which had led to complaints.Another added: "It's a shame because it's been a focal point of Settle since the industrial estate started, but it's a changing world."He said not many people who lived in the town were in work, with many properties now holiday homes or occupied by retirees."It's a dying town in that way."The third man raised concerns about who would take over the site."We're not sat on the side of a dual carriageway or a motorway, whichever way you go you've an hour to go to the motorway."How do we get jobs into Settle?"
One retired man, who has lived locally for 20 years, didn't want to give his name because "it's an emotive subject around here"."I think it's quite devastating," he said, pushing his wheelbarrow towards an allotment near the site."There's all this newbuild housing going on, but I don't know how they're going to expect to fill them if the people here have got no work. There's something sadly wrong somewhere."
In the town centre, one shopkeeper added: "Nobody likes the idea of it closing down, but will we actually notice it?"
Local MP Smith, however, said the closure would have a "major impact" on jobs in the supply chain, transport and other businesses supporting the plant."The town of Settle had provided Arla with a lot of broader support, despite some of the odour-related issues of recent months and years," he said.Smith said community stakeholders and the GMB union had met to offer alternative proposals to Arla, including new, larger sites and funding, but that the company "just had those meetings and very rapidly continued with the pathway I believe they were always on".In a letter to the chief executive of Arla, Smith also said a "lack of engagement" from the company "demonstrates a disregard for the community".
Smith told the BBC: "I was pretty appalled that there was a dedicated group of people really trying to work through options. Arla didn't even look at them."If I was the chair of the Arla board, I would be looking at the disrespect that the Arla executive showed to that group of people, and the lack of openness, as a real failure," he said.
The Labour Mayor of York and North Yorkshire, David Skaith, said: "We did go in there with incredibly good faith and we're not entirely sure they've always had that same good faith as well."He pledged to support those who would lose their jobs as a result of the closure, including the delivery of a "skills package".
In a statement on 28 April, a spokesperson for Arla said the company had "engaged with employee representatives and the GMB union in detailed and meaningful consultation", and "carefully considered all alternative proposals".Confirming the closure, they added: "We remain open to exploring alternative uses for the Settle site during the transition phase."Understandably, this remains a period of uncertainty for our colleagues, and our foremost priority is to continue providing support as we navigate the subsequent stages of the consultation process."
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