The House of Commons Library has published a report on government support for employment in the automotive manufacturing sector in the UK. The report highlights the significant contribution of the sector to the UK economy, with approximately 168,000 people employed directly in automotive manufacturing and a further 823,000 in the wider industry. The sector generates £82 billion in turnover and £18.6 billion in added value to the UK economy.
The report notes that the UK government has provided various forms of support to the sector, including:
- Funding for research and development: The government has committed £1 billion to support the development of ultra-low emission vehicles and £378 million for research and development in the automotive sector.
- Investment in skills and training: The government has launched initiatives such as the Automotive Council’s Skills Agenda, which aims to address skills shortages in the sector.
- Support for apprenticeships: The government has introduced apprenticeship programs, such as the Automotive Apprenticeship Service, to help young people enter the industry.
- Regional support: The government has provided funding to support the growth of the automotive sector in specific regions, such as the Midlands Engine and the Northern Powerhouse.
- Trade support: The government has negotiated trade agreements, such as the UK-EU Trade and Cooperation Agreement, to support the sector’s exports.
The report also highlights the challenges facing the sector, including:
- Brexit uncertainty: The ongoing uncertainty surrounding the UK’s departure from the EU has created uncertainty for the sector, particularly regarding future trading arrangements.
- COVID-19 pandemic: The pandemic has had a significant impact on the sector, with many manufacturers experiencing supply chain disruptions and reduced demand.
- Transition to electric vehicles: The sector is undergoing a significant transition to electric vehicles, which requires significant investment in new technologies and skills.
The report concludes that the UK government has provided significant support to the automotive manufacturing sector, but notes that the sector still faces significant challenges. The government has announced plans to support the sector’s transition to electric vehicles, including a ban on the sale of new petrol and diesel cars by 2030. However, the report highlights the need for continued government support to ensure the sector remains competitive and can adapt to the challenges it faces. Overall, the report provides a comprehensive overview of the government’s support for employment in the automotive manufacturing sector and highlights the importance of continued investment and support to ensure the sector’s long-term success.