Newton Aycliffe jobs ‘protected’ by deal

Hundreds of jobs have been protected at a train factory following a £500m deal, Prime Minister Sir Keir Starmer has said.

A gap in orders at Hitachi’s Newton Aycliffe site, in County Durham, had sparked fears over the future of the site and its roughly 700 employees.

Now the government has announced a contract has been struck to build 14 “state-of-the-art” trains at the factory.

Sir Keir said the deal had given the company the “certainty and stability” it needed to continue.

“We helped secure a deal that will help protect hundreds of jobs, keep this business ticking and improve rail services,” he said.

“I made a promise to the workforce of the Newton Aycliffe factory and, today, I’m delivering on that promise.”

The contract to build the five-car class 80X Hitachi electric or bi-mode trains was agreed between FirstGroup, Hitachi and Angel Trains.

Delivery of the new trains is expected to begin in 2027.

Jim Brewin, chief director of UK & Ireland at Hitachi Rail, described the deal as a “positive step forward”.

It also includes an agreement for FirstGroup to lease a further 13 five-car trains, should its plans to expand its Lumo services be successful.

“We look forward to once again delivering for Hull Trains and Lumo passengers who will benefit further from our award-winning British-built trains,” Mr Brewin said.

Graham Sutherland, FirstGroup’s CEO, said the deal would support UK manufacturing and “offer customers more choice as they consider affordable, environmentally friendly modes of travel”.

Henri Murison, chief executive of the Northern Powerhouse Partnership which represents businesses, told BBC Look North the decision gave Hitachi “welcome breathing space”.

“The last government left a mess. There had been huge delays and hiatus because of the way they approached ordering new trains for operators either directly or indirectly under their control.

“What we’ll now have is a number of train procurements coming forward, I would expect, over the coming months and years that will give Hitachi and other factories across the North of England a fair chance to compete for work.”

North East Mayor Kim McGuinness welcomed the news and said protecting jobs at Hitachi was at the top of a list of priorities she had made when elected.

“Today shows the power of what we can achieve when we stand together, and that our great North East has bright days ahead of us,” she said.

“We have a government on our side, and working with me to make the North East the home of real opportunity.”

Meanwhile, Ben Houchen, Mayor of the Tees Valley, described the announcement as something to “celebrate” but warned “we need to make sure the government doesn’t walk away from this now and assume its job is done”.

The Conservative peer, also known as Lord Houchen of High Leven, said there had been “a real risk” the factory could close in the coming weeks or months.

“The fact it’s secured at least temporarily is great news and we’ve got to thank the government for working hard.

“It’s going to give lots of workers and their families comfort over the Christmas period and into 2025.

“But there’s still the longer-term viability of the factory we have to concentrate on. This isn’t the end of the road.”