Plant Oxford Site

(Urgent Question): To ask the Secretary of State for Business and Trade if we will make a statement on the Plant Oxford site.

This Government are determined to see a strong, thriving UK automotive industry. We recognise the vital role that the British motor industry plays within our manufacturing landscape, employing more than 150,000 people, with tens of thousands more working in the wider supply chain. That is why we are ploughing £2 billion into the sector’s green transition and £300 million to encourage the uptake of new, clean, green electric vehicles—a big incentive for the global automotive sector to invest in the UK. Building on this momentum, our modern industrial strategy will back automotive companies that want to invest in Britain and drive long-term sustainable UK growth.

BMW has taken a commercial decision to delay the production of two new electric Mini models at its Oxford plant. Undoubtedly, that news will be unsettling for the company’s many hard-working employees, not least those working directly on the production line, but I must stress that BMW remains committed to its investment in the UK. It is by no means unusual for a manufacturer to adjust its product line-up or production start dates for commercial reasons.

We are proud that BMW considers Oxford to be at the heart of Mini production. As a Government, we are throwing our weight behind its investment. We want big automotive brands from Britain and around the world to lie at the heart of our growth mission and plan for change, creating well-paid jobs and putting more money into people’s pockets. As part of that effort, this Government are working closely with BMW as it reviews its investment timelines, ensuring that more cars are built right here in the United Kingdom.

I draw attention to my entry in the register of interests. I expected the Secretary of State to hide from talk of CVs, but it seems that also applies to EVs. This weekend we saw the disastrous consequences of Labour’s rigid approach to net zero: BMW hitting the brakes on a £600 million investment in Plant Oxford. That deal, from 2023, would have secured 4,000 high-quality jobs and was a strong vote of confidence in the UK. Like other deals, it was possible only because the previous Government were willing to be pragmatic. The Conservatives made the sensible decision to delay the ban on internal combustion engine cars, bringing the UK into line with major global economies such as France, Germany, Sweden and Canada, but Labour said it knew better, restoring the 2030 phase-out date in its manifesto.

When the negative impacts of that approach became clear, the Government launched a fast-track consultation on the zero emission vehicle mandate, pitifully attempting to buy themselves time. Surely, no consultation is necessary. The effects of their puritanical ZEV obsession is already clear: Jaguar Land Rover says that the ZEV mandate is causing disruption to the market; Vauxhall has confirmed that it will shut down its Luton factory, citing the ZEV mandate as making the plant less economically viable; and now the future of Plant Oxford—the home of the Mini since 1959—is uncertain.

Labour’s reckless policies have shattered industry confidence, with consumer demand for EVs dropping off a cliff and numbers only just about sustained by subsidised fleet sales. Will the Minister do the right thing: stop hiding behind consultations and acknowledge that the Government’s ideological approach to net zero will lead only to economic disaster for our automotive sector and consumers alike?

It is hard to know where to start. The “puritanical ZEV obsession” was, as the hon. Gentleman knows, a Conservative policy from the last Government. The only changes made to that policy under the last Prime Minister dampened demand by changing the deadline, and hampered manufacturers by not ensuring flexibility or pragmatism in how the policy operated—it was the worst of both worlds.

By contrast, Labour and the Government are acting with pragmatism. We are listening to industry and working at pace to get this right. We are also creating the conditions in which the automotive industry can thrive. That means delivering not just the economic and political stability so lacking under the previous Government, but an industrial strategy that will deliver growth, including in the automotive industry; investing £2 billion in automotive transition through the Budget; investing in research and development; supporting and talking to our industries; and understanding the global climate.

It was really clear in BMW’s statement that there were macroeconomic global and commercial reasons why the decision to delay was made, but BMW is clear that it is still committed to this investment in the UK. I have talked to my right hon. Friend the Member for Oxford East (Anneliese Dodds), who is liaising closely with workers and unions, as would be expected. We will continue to work to ensure the right economic and political climate, so that these industries can grow.

Will the Minister update the House on progress on the industrial strategy for the automotive industry? How will that support supply chains in places like Dudley and across the west midlands?

We are working at pace on delivering the industrial strategy in the spring. There are 150,000 good jobs in the automotive industry, and we want to see those jobs grow. We have identified eight growth sectors that the industrial strategy will turbocharge. Advanced manufacturing is one of them, and that of course includes the auto industry. We have £2 billion of investment, committed at the Budget, to underpin that. We are also working in the industrial strategy on identifying any barriers to growth, so that we can ensure that the sector grows in the years to come.

The industrial strategy will give the stability that we need over the long term—over five and 10 years. It will look at the policy levers that we can control to ensure that businesses continue to want to invest in the UK. PwC has just ranked the UK the second-best place in the world to invest, so I think the future is positive.

I call the Liberal Democrat spokesperson.

This is yet another failure in the Government’s main aim of getting Britain growing again. Zero-emission vehicles are too expensive and, it appears, too hard to manufacture in the UK. That forces us into an unfortunate reality in which we are reliant on Elon Musk for our supply of EVs, and are funnelling money into his already very deep pockets, rather than promoting a productive domestic market with good jobs. We need to show ambition and make it easier for ordinary families to buy EVs. What measures will the Government take to support and encourage consumer demand for electric vehicles?

The hon. Gentleman talks about the Government’s policies for growing the economy. A few months ago, we held an international investment summit, at which £63 billion of investment was announced. As I have mentioned, there was £2 billion announced in the Budget for the automotive industry. Interest rates have been cut three times, wages are up, and more than 70,000 jobs have been secured in the UK since the Government came to power. The International Monetary Fund and the OECD predict that the UK will be Europe’s fastest-growing economy over the next few years. The industrial strategy was scrapped under the last Government; our industrial strategy will be the backbone of ensuring that we deliver growth.[Official Report, 3 March 2025; Vol. 763, c. 1WC.] (Correction)

The hon. Gentleman asked what we were doing. I have already set out the stability, investment and reform that we are bringing to the sector to make sure that it can thrive. Hundreds of thousands of people rely on the automotive industry through their work in it, or in its supply chains. Those are good, well-paid jobs, and we are absolutely determined to ensure that the sector grows.

The Minister has set out how we delivered £2 billion-worth of support for the automotive sector in the Budget. That support is both for manufacturing and for the crucial supply chains in places such as my Black Country constituency and Oxford. Is she able to set out any further details about how that money will be used to support our brilliant manufacturing?

I thank my hon. Friend for her question, and for her support for the industry, which is so important. Through the £2 billion funding, the automotive transformation fund, the exceptional regional growth fund and the advanced propulsion centre research and development fund, we have found innovative ways of supporting the industry. In January, I was pleased to hear Jatco, a company that makes transmissions for Nissan, announce that it would put its first manufacturing plant in Europe here in the UK; it is converting an old hospital building with a £50 million investment. That plant will be at the international advanced manufacturing park in Sunderland. That is the kind of opportunity that we want to create and deliver.

Jaguar Land Rover, which has its engine manufacturing centre based in Staffordshire, is a vital employer for people not just in Staffordshire, but right across the west midlands. That plant is pioneering the development of electric vehicles for JLR. What additional support and flexibility will there be from the Government to ensure that Great British brands continue to prosper in the west midlands?

The right hon. Gentleman is right to talk about Great British brands. We have some incredible small car manufacturers, as well as larger ones, in the UK, and there is great diversity of provision. We are supporting the development of gigafactories in the UK, so that we can make the batteries that we need. We are helping with R&D and innovation to make our cars more sophisticated and efficient, and supporting the large manufacturers to ensure that the conditions are right for them to develop in the UK. We are doing all those things through our industrial strategy and our automotive strategy. I work with the Automotive Council; we met just a couple of weeks ago to talk about the vibrant future that we see for automotives in the UK. I am always happy to talk to JLR about its plans, and have done so several times.

I know that the shadow Minister struggles with the dynamics of the automotive industry, but for the last 20 years, 50% of new vehicle sales have been fleet and business sales. Does the Minister agree that the decision taken today is a commercial decision, based around the structure of BMW’s dealer network, as opposed to an obsession with petrol and diesel vehicles?

My hon. Friend as absolutely right to say that this is a commercial decision. As he would expect, we are talking to representatives of BMW; my officials were with them in Munich a couple of weeks ago, and I have met the UK managing director several times. We are talking to them to support the commercial decisions that they need to make. They have made it clear that there were macroeconomic, global and commercial reasons for the delay that has been announced; such delays are not uncommon. I know that BMW remains committed to this investment in the UK.

More than 300 employees at the BMW plant in Oxford live in my constituency, and this morning I met plant convenors from the Unite union to discuss the impact that the uncertainty at the plant is having on those workers and their families. Can the Minister outline exactly how the new industrial strategy will help the plant to become more competitive, in the face of severe competition from other BMW plants in the EU, the US and China?