Gigafactory a huge loss to region
IN 2022, then Prime Minister Boris Johnson proudly declared plans for a Britishvolt gigafactory in Blyth as a cornerstone of the UK’s green industrial revolution, predicting it would revitalise the North East’s economy by creating thousands of jobs.
However, just over two years later, this promise has crumbled into dust, with Northumberland Council abandoning the plans last week. Instead, the site may now be repurposed for a data centre, a development that is still in its infancy and, even if realised, will provide only a fraction of the jobs the battery factory promised.
The collapse of the Britishvolt initiative is not just a local disappointment but a national failure. It stands as a stark symbol of the Government’s wavering commitment to ‘levelling up’ – a key pledge in the Conservative Party’s 2019. The North East, once envisioned as a beneficiary of substantial investment in high-tech manufacturing, is now left grappling with the fallout of yet another industrial letdown. The proposed data centre, while significant, offers little solace.
According to Northumberland County Council, the project led by US private equity firm, Blackstone, plus future investment, might generate up to 1,600 direct jobs and 2,700 indirect ones over its development phase.
However, these numbers pale in comparison to the 8,000 total jobs that were expected from the gigafactory.
Moreover, the very nature of data centres means fewer long-term employment opportunities compared to manufacturing facilities, which require a broad spectrum of roles. It especially misses out the major economic benefits that can come from a wider manufacturing supply chain, where transport, logistics, facilities, and education can provide security and prosperity for thousands of people.
The Government’s recent investment of £20m into the local economy, part of the broader ‘Energising Blyth Programme’, is a positive step, but it’s a drop in the ocean compared to what’s needed to genuinely address regional inequality. These funds are earmarked for housing renewal, tackling antisocial behaviour, and enhancing local employment opportunities, which, while beneficial, do not compensate for the loss of high-value manufacturing jobs that would have bolstered the entire regional economy.
It again raises serious questions about the Government’s industrial strategy and its commitment to the North East. It also highlights the broader issue of the UK’s preparedness for the electric vehicle market. It’s a telling reminder that real change requires more than grandiose announcements at press conferences; it requires sustained investment and a genuine commitment to the communities that need it most.