Cash from economic growth fund could help retrain Luton Vauxhall workers if government doesn't step in to help
Money could be allocated for retraining the Vauxhall workforce in Luton from a fund set up to encourage economic growth in the town, if the local authority receives no financial aid from the government, a meeting heard.
Vauxhall’s Luton van plant is expected to shut down in April with the loss of around 1,100 jobs. The borough council is continuing to lobby for government help to soften the economic fallout.
Use of funding from its Butterfield reserve is an option for the borough council, which was part of a report to its executive focusing on two areas of finance.
Luton was awarded just over £2.8m under the last Conservative government in UK shared prosperity funding (UKSPF), according to a report to the committee. All local authorities had to produce an investment plan outlining how they wished to spend the money against three investment priorities of communities and place, local business, and people and skills, said the report.
“Luton focused on seven key themes and projects. These were the town centre, the regeneration of Kingsway Park, Vauxhall heritage feasibility, skills and employability, inward investment and business support, place activation, including a new investment brand for Luton, and climate change.
“This funding has enabled the council to deliver much-needed programmes it otherwise couldn’t because of funding constraints and budget pressures.”
Labour High Town councillor James Taylor told the committee: “This funding has enabled us to produce a new public realm design guide and buy pieces of public art and planters.
“We’ve delivered hundreds of extra skills and employability courses supporting our residents to upskill and reskill,” he explained. “The money enabled us to provide the Vauxhall heritage project, work which is now critical for the next steps of the programme after the recent announcement about the company.
“UKSPF will continue for another year, although at a reduced rate. Luton’s allocation is £937,644 of which £173,119 is capital and the rest is revenue.
“The criteria are still the same, with a focus on economic growth, place and skills. The spend will be directed towards these areas, the visitor economy, and heritage to mark VE and VJ Day.
“It was formally confirmed in January that Stellantis would be closing its Luton plant. No financial support has been received to date to aid the response to this closure.
“While we continue to advocate for government assistance, there’s the possibility we may have to react ourselves. So we’re requesting a draw down of up to £250,000 from the Butterfield reserve, which is specifically for economic growth in the town.
“This will enable us to act swiftly should we require extra resources, feasibility work, or improved skills and employability support. It’s suggested these resources could be initially obtained from the reserve if needed,” he added.
“But, depending on the scope of work for the Vauxhall response, a further report could be necessary to discuss the funding of these crucial projects for the town.”
The executive noted the successful achievements of the UKSPF-funded projects delivered from January 2023 to the present, and agreed the draw down of up to £250,000 of ringfenced Butterfield reserves.