Vauxhall plant closure 'could cost Luton area £300m a year'

BBC News

24-06-2025

The closure of Luton's Vauxhall plant could amount to a gross value added loss to the area of more than £300m a year, a report said.An estimated 1,200 employees were affected by Stellantis's decision to shut the Bedfordshire plant in March, 120 years after it started manufacturing vehicles.Luton Borough Council has formally approved a decision to create a taskforce to "manage and mitigate the economic shock", it said. The group includes the council, government officials, logistics firm Goodman that has purchased the site, and Luton Rising - the council-led group that owns London Luton Airport.
The report by Sinead McNamara, service director for inclusive growth, to the borough council's executive said the closure would have "significant economic and social consequences, and will negatively impact both Luton's and the wider regional economy's future financial growth ambitions".It would affect the direct job losses but also "the supply chain", it said."Early estimates are that the closure of the Luton plant represents a GVA loss of over £300 million per annum, a huge economic shock to the local and regional economies."The Local Democracy Reporting Service said the report stated that "several positive meetings" had been held with the new owners, which said it would spend £400m regenerating the site into a "high-quality commercial and industrial park".
Hazel Simmons, Labour leader of the authority, said the group would be "specifically focusing on the economic renewal of the site, with extra skills and training to support affected workers back into employment". She said "opportunities" were also emerging with the approval of the expansion of the town's airport and Universal Studios planning to open a theme park close to Bedford. "We also have the new 25,000 capacity football stadium opening in our town centre, as well as a strong cultural events programme and live music offer to support the thriving visitor economy."These two developments alone will transform our town and reinforce the role Luton plays in the wider regional economy. "What we must address with the taskforce is the short-term and how we can maximise opportunities around what's happening at a later date," she added.Stellantis said it closed the Luton plant to move its electric van production to another site in Ellesmere Port, Cheshire, where it was investing £50m."Our employees always remain our priority, and we continue to act responsibly towards our colleagues in Luton," a spokesperson previously said.
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