No deal to save Hitachi in Newton Aycliffe in Budget 2024

The Echo, which has been campaigning since March to save the train-builder’s County Durham plant, last week called on Rachel Reeves to use her budget as an “opportunity to secure the firm’s long-term future”.

In a front page ahead of today’s budget The Nothern Echo called on Sir Keir Starmer to “Keep your promise, Prime Minister”, after Labour minsters repeatedly said the factory could be saved ‘with the stroke of a pen’ before the General Election.

But those pleas have so far gone unanswered with no announcement during the bumper speech at lunchtime.

The factory faces uncertainty with a fast-approaching gap in the order book before work starts on HS2 trains putting its future, and hundreds of jobs, at risk in the next 12 months.

Chancellor Rachel Reeves being shown around the Hitachi plant in April, along with (L-R) Newton Aycliffe and Spennymoor MP Alan Strickland and North East Mayor Kim McGuinness. (Image: SARAH CALDECOTT) The Echo understands talks between the train-builder and government are ongoing and remain productive.

Newton Aycliffe and Spennymoor MP Alan Strickland said: “Negotiations between Hitachi and the Department for Transport started in earnest after the election and are continuing at pace. The new government continues to work hard to resolve the legacy of Tory rail failure.

"I am pleased with progress being made and will continue to meet with relevant officials."

He added: "The first Labour Budget in 14 years has set out our plan to fix the foundations of our country.

"Our area will benefit from the National Living Wage increase, freeze on fuel duty, school rebuilding funds and an NHS cash boost to cut waiting lists. I’m also delighted the government has committed £1bn to end the mineworkers’ pension scandal.

"These are important steps in making Britain and our community better off."

A Hitachi Rail spokesperson said: “We continue to have regular and constructive conversations with the UK Government and industry partners about solutions for Newton Aycliffe.”

Transport announcements in Ms Reeves' bumper budget included funding for HS2 tunnelling to London Euston and rail projects including upgrades to the TransPennine line.

Ms Reeves previously told the Echo she was ‘absolutely determined’ to save the plant.

Speaking on her first day working from the Darlington Economic Campus as Chancellor in July she said: “You know my commitment to Hitachi - I’ve been there on a number of occasions, as has the Prime Minister and the new Transport Secretary Louise Haigh.

“We are absolutely determined to keep those good jobs at Hitachi. We’ve met people who work there, I know how skilled those jobs are.

Hitachi in Newton Aycliffe. (Image: SARAH CALDECOTT) “We’ll do everything we can to protect these jobs, as we promised in opposition. We will deliver in Government.”

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A Treasury spokesperson said the Chancellor and Transport Secretary are committed to supporting rail manufacturing and its long-term future in the UK. 

They added: "We know how important rail manufacturing is in the North East and the DfT is working at pace with Hitachi on options to secure a sustainable future for manufacturing in Newton Aycliffe."

During the election campaign Labour backed our Northern Echo Manifesto, which included stepping in to save Hitachi, and our ‘Keep Hitachi on Track’ campaign was by the PM.

In a rare interview in June Hitachi’s executive vice president energy and mobility Alistair Dormer called on the incoming administration after the General Election to act on day one of coming into power.