Anger as Labour confirms it has thrown out gigafactory plans

Labour has prompted fury from business leaders in the West Midlands after Jeremy Corbyn confirmed that the region had been overlooked for a new gigafactory.

Bosses across the region – including Mayor Andy Street – had campaigned for the giant electric battery factory to be built in the West Midlands Combined Authority (WMCA) area, saying it would create more than 1,000 jobs at the heart of the country's automotive cluster.

However, Labour has today confirmed that three sites have been chosen, with the closest one falling outside the WMCA area in Stoke-on-Trent.

The decision was announced as part of Labour's "manifesto of hope" for the West Midlands, which saw the party pledge billions of pounds of investment and thousands of new council houses.

Conservative Mayor Mr Street, who has outlined plans for a 1.9 million sq ft factory, said a site was "desperately needed" so the UK could continue to compete on the global electric car manufacturing stage.

"But in picking the locations they have, Labour have ignored the most obvious home for this state-of-the-art facility – the West Midlands," he said.

"Our region has an automotive cluster that features innovation centres, research centres, autonomous vehicle test beds, and major production plants.

"Home to JLR and employing more than 46,500 people, the West Midlands is at the heart of the UK’s automotive industry.

"Given the weight and the difficulty of transporting the batteries powering our next generation of electric vehicles, it is absolutely vital that a gigafactory is built as part of an automotive cluster with strong transport links.

"When you consider these factors, I think it is obvious where one should be built.

"It is a real shame that Labour have not recognised this, and that the Labour MPs who represent our region have not been able to make this case.

"I will continue to lobby the incoming government to make sure the UK’s first gigafactory is built in its rightful home, here in the West Midlands."

Black Country Chamber of Commerce member Ninder Johal, said he was disappointed with the decision.

"The West Midlands, and in particular the Black Country, are known for having a strong automotive presence and supply chain," he said.

"There has also been a lot of work involving JLR and battery manufacture research in Coventry and at Warwick University. It was logical that the gigafactory should be based near the supply chain.

"It is disappointing when politicians are not able to line up a logical strategy when it comes to industry and commerce.

"A successful economy only comes when they listen to business and try to work in partnership.

"This is an example of a disjointed way of working where businesses views are not taken into account. It is a real problem at the moment that too often, politicians are not listening to industry."

Labour Leader Mr Corbyn said his party's regional plans for the UK involved "investment on a scale our country has never known".

The manifesto includes plans for £11 billion investment from Labour's green transformation fund, full-fibre broadband for 2.7 million households, 120,000 "well-paid green jobs" and a pay rise for 685,000 workers.

Launching the manifesto in North Warwickshire, Labour’s shadow communities secretary, Andrew Gwynne said: "Lib Dem and Tory cuts have been holding this region back for nearly a decade.

Since 2010, the West Midlands has grown at only three quarters of the rate of London, and weekly wages are now more than £180 less than in the capital.

"When you look behind the figures, you see the misery that the Tories have caused here. Universal credit blighting people’s lives with worry, debt, and hunger.

"The stress of unpaid bills, or the fear of waiting so many desperate weeks for vital cancer treatment. And every Christmas, more and more people sleeping rough on our streets.

"The West Midlands, and the whole country, deserve real change."