Economics

JLR is 'jewel in the crown' of UK economy, says PM

Burnham insists mass car production still has a future in the UK despite concerns over EU policy.

JLR is the UK economy’s 'jewel in the crown', says PM

Andy Burnham said he would "never let industry just go"

Prime Minister Andy Burnham has called Jaguar Land Rover (JLR) and the West Midlands automotive industry the "jewel in the crown" of the UK economy.

Speaking to BBC Politics West Midlands, Burnham said mass car manufacturing still had a future in the UK and added that the government was working with the EU so new rules would not put British manufacturers at a disadvantage.

JLR has urged the government to help it expand into aerospace and defence, warning that car production is likely to face a long-term decline.

Burnham said he would treat those concerns seriously, but stressed that his main focus was still on supporting the automotive sector.

"We're so proud of JLR and indeed the whole automotive sector across the West Midlands," Burnham said. "It's the jewel in the crown of the UK economy."

He said there were "pressures" in the global car market, but added: "We're working hard in relation to Europe to make sure that any changes that come through there don't negatively impact on the British car industry."

The UK is trying to work with the EU on proposed "Made in Europe" rules, which are designed to shield European manufacturers from global competition. Burnham has said British firms being left out would harm supply chains.

In an open letter, JLR suppliers said the British automotive supply chain was "in the wrong market" and called for support to shift automotive businesses into aerospace and defence.

They warned that JLR's plan to cut 4,000 jobs was the "first visible crack" in a supply chain supporting about 183,000 manufacturing jobs.

JLR suppliers say skills and factories could be redirected into aerospace and defence

Burnham said he was willing to look at the proposal: "Those companies that have written, we will take seriously what they've said, as well as supporting the primary interest which is the car industry in the West Midlands."

The government has already floated grants, lower energy costs and investment in electric vehicles as ways to back the sector.

"That's the very purpose of the place where we are now, number 10 North. It's all about supporting growth in all parts of the country and we're never going to let industry just go."

He said earlier governments had let industries in the West Midlands and North West decline.

"That happened in the 80s in the West Midlands and here in the North West where industries that were facing difficulty were just left and the jobs were just allowed to go," he said. "I would never do that."

The prime minister said "supporting industrial transition" was part of his reindustrialisation policy.

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