Question to the Department for Business, Energy and Industrial Strategy:
To ask Her Majesty's Government, further to the Written Answer by Lord Henley on 20 May (HL15847), what recent estimate they have made of the number of job losses in the wider supply chain that will result from (1) Honda's decision to close its Swindon plant in 2021, and (2) other recent announcements by car manufacturers.
The Government is working with the car manufacturers and key industry groups to identify and assess supply chain risks in all cases where car manufacturing operations are expected to cease or reduce. It is a complex picture and it is difficult to project the number of potential job losses. Every effort is being made to minimise job losses by supporting affected suppliers to identify new opportunities to sustain and potentially grow their businesses before the impact of these announcements comes to pass.
The Government has recently launched the £16m National Manufacturing Competitiveness Levels (NMCL) supply chain programme, which is designed to improve competitiveness, raise workforce capability, and increase the productivity of automotive suppliers. The programme is open to Honda suppliers.
The Government will continue to assess UK wide supply chain risks have so far identified over 60 supply chain companies directly impacted by the Honda decision. We are working across all LEP areas and with the Devolved Nations to protect and support Honda supply chain businesses across the UK. As well as work across Government to measure the potential short and long-term economic shock from Honda and any supply chain closures on the UK economy (including within other sectors).
There are more than 2500 automotive supply chain companies in the UK, including 18 of the world's 20 biggest automotive suppliers, producing approximately £12.7bn worth of parts.
I am pleased to confirm that the Government announced this April that Swindon will be one of twelve new Institutes of Technology to be set up across the country to boost the nation's skills and set more young people on a clear path to high quality and well-paid jobs.
We are doing everything possible to support businesses, their workforce and communities affected by the announcements. We continue the strive to attract investment, creating highly-skilled jobs that offer fulfilling careers for years to come.