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

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

Speaking to BBC Politics West Midlands, Burnham insisted mass car production still had a future in the UK and said the government was working with the EU to ensure new rules did not disadvantage British manufacturers.

JLR suppliers have called for government help to move into aerospace and defence, warning that car production faced a long-term decline.

Burnham said he would take the concerns seriously but that his priority remained helping the automotive industry continue.

"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 that 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 seeking to work with the EU over proposed "Made in Europe" rules which are intended to protect European manufacturers from global competition. Burnham has warned that excluding British companies would damage supply chains.

In an open letter, JLR suppliers said the British automotive supply chain was "in the wrong market", calling for help to move 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 has its global headquarters in Coventry and plants in Solihull, Castle Bromwich and Wolverhampton in the West Midlands, and Halewood in Merseyside. Its design centre is in Gaydon, Warwickshire.

Burnham confirmed he was prepared to consider the proposal.

He said: "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 previously suggested grants, lower energy costs and investment in electric vehicles as measures to support 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 added.

He said previous governments had allowed industries in the West Midlands and North West to decline.

"That happened in the 1980s 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 policy of reindustrialisation.

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