BREXIT: Luton North MP warns against prospect of 22% tariffs on Luton-made vans

Luton North’s Labour MP today pleaded with Brexit Minister Michael Gove to present MPs with a post-Brexit trade deal that she could vote for - which would "protect jobs and avoid eye-watering 22% tariffs" on vans made at Vauxhall in Luton.

Alison Jones, the UK boss of PSA which operates Vauxhall, last week warned that “there will be disruption” at the end of the Brexit transition period on December 31.

The company employs about 3,000 people in the UK, with around 900 at the firm’s Luton plant producing mid-size vans.

A Centre for Cities report earlier in the year identified Luton as the second-most local economy vulnerable to coronavirus, due to the size of the aviation sector and motor industry in the town.

In the House of Commons today, Ms Owen said: “The vehicle industry has consistently warned that a no-deal Brexit risks the future of UK plants and skilled, unionised jobs. Without a deal, Luton-made Vauxhall vans could face a tariff of 22%.

“Coupled with covid cuts to our council and no support for our aviation industry - for Luton, no deal, would make this a job-killing government.

“With just 22 days to go before the end of the transition period, can he guarantee that there will be no tariffs on vans and cars made in this country?”

In response, the government’s lead Brexit spokesman Michael Gove said: “The automobile sector is important not just in Luton, where there are so many skilled people producing fantastic products, but across the UK.

“Of course, if we secure a free trade agreement, it will be a zero tariff, zero quota agreement.

"If we don’t secure that agreement, then it will be the case that there will be tariff, but there will also be tariffs on automobiles coming into the UK and that will have an impact obviously on industry in the EU.”