Reeves vows Labour 'will fight' to save Nissan jobs

The Government “will fight” to save North East jobs after a global car maker pulled the handbrake on thousands of posts, the Chancellor has pledged.

Rachel Reeves said Labour will work with Nissan to “protect jobs in Sunderland” as bosses seek to axe 9000 posts worldwide.

And the country's treasury chief also vowed to help the 6000-job Wearside firm navigate UK green vehicle sales targets, after officials warned a Government blueprint risks significantly stalling production.

The global operator is slashing posts due to falling Chinese and US sales, and last month hinted at changes to its flagship Sunderland plant – where it has made the all-electric Leaf hatchback for more than a decade – unless the Government performs a U-turn on its zero-emission vehicle mandate.

Demanding 22 per cent of manufacturers’ new car sales are carbon-free models, the directive states the figure must rise to 80 per cent by 2030 and 100 per cent in 2035.

But Nissan – which previously chose Wearside to produce green versions of its best-selling Qashqai and Juke models – has criticised the order, saying it “risks undermining the business case for manufacturing cars in the UK, and the viability of thousands of jobs and billions of pounds in investment.”

Confirming the Government has already held discussions with Nissan, led by Wearside-born Business Secretary Jonathan Reynolds, Ms Reeves said it is now conducting a review of the green sales agenda, which was introduced by the last Conservative regime.

She said: “A global reduction in jobs is worrying, but we’ll fight to keep all the jobs we can in Britain.

“We’re not letting things take their course; we are working to protect jobs in Sunderland.

“The number of electric vehicle sales has gone up by more than 50 per cent in the last year, which we’re really pleased about.

“But we’re looking at the mandate about the number of electric vehicles manufacturers have to sell.

“We don’t want to make it any harder to produce cars in this country.”

Speaking to Bdaily during a visit to Sunderland City Hall and the Culture House civic hub – which highlighted the use of technology across public services – Ms Reeves also pledged Labour will ensure the North East is no longer “ignored or forgotten” on the national scene.

Reiterating its delegation of powers to the region, chiefly the north of the region’s headline £4.2 billion devolution deal that saw Kim McGuinness installed as North East mayor earlier this year, the fiscal chief said the Government “is backing words with actions”.

She said: “We’ve committed to moving to a single settlement from 2026, which is a real show of strength and our belief in Kim.

“Instead of a bit of money for housing or skills, it is a pot of money that Kim – who has a better idea of local priorities – can use to get better value for money, which, as Chancellor, is very important to me.”

Highlighting Labour’s support for blue-chip projects including the 8450-job Sunderland-based Crown Works Studios film and television production hub, and the 1000-job Net Zero Teesside carbon capture, utilisation and storage factory, planned for Redcar – both unveiled across the last Westminster regime – Ms Reeves said: “Our number one mission is to grow the economy.

“But we are only going to achieve that if we use the resources, talent and skills in places like the North East.

“Too often, the North East’s contribution has been ignored or forgotten – but we’re not going to be like that.

“We’re not going to do things to the North East; we’re going to work with local leaders to support what is happening on the ground.”

Ms Reeves also reaffirmed her decision to revise agricultural inheritance tax frameworks in her recent Autumn Budget, insisting the measures – when set against the backdrop of a £5 billion boost for the farming sector – represent a “fair deal”.

She added: “When I became Chancellor, I inherited a £22 billion black hole.

“It hasn’t been easy to deal with that mess, and close that gap, but that’s what I did in the budget.

“It required a number of difficult choices on tax, welfare and spending, but we now have a grip on public finances.

“We’ve had to make difficult decisions around inheritance tax – but only about a quarter of estates will be affected by these changes.

“If a husband and wife own a farm with a farmhouse, they will still be able to pass down £3 million without paying any inheritance tax.

“After £3 million, the rate is half that paid by anyone else; I think that is a balanced and fair approach.

“I recognise it is new, and I would encourage farmers to get advice on how the changes might affect them.

“But the data shows only a quarter of estates will be affected.

“And we made a commitment of £5 billion for the agricultural sector in the budget, which we think is a fair deal for farmers.”

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