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Sir Keir Starmer has said a deal struck by Hitachi which has given a lifeline to hundreds of jobs at a Co Durham train factory will relieve the anxiety of workers.
Hitachi’s £500 million deal with rail operator FirstGroup will see its Newton Aycliffe plant build 14 new trains, with an option for an additional £460 million investment.
Uncertainty had surrounded the future of the plant and the 700 people employed there due to declining orders.
Hitachi’s UK and Ireland director said the contract was a “positive step forward” but the executive chairman of the Japanese company warned that if the northern leg of HS2 is not revived by Labour, jobs at the factory could be in jeopardy.
The Prime Minister visited the factory before the election and accused the then-government of leaving Britain’s rail manufacturing sector “teetering on the brink”.
He returned to the site on Friday, saying that workers had been “anxious” when he last spoke to them “because they feared there was going to be a gap between the contract they’re working on now and the next contract”.
He added: “They knew what a gap means, which is that people might lose their job – huge impact.
“I stood before them and said, ‘if we win the election and form a government, I give you my word that we will do everything we can to try and make sure there’s a deal that gets to fill that gap, takes away the anxiety’.”
He said the Government can be involved in such private sector deals by “setting the strategy, being clear about the orders that we need, a longer term strategy and doing the encouragement that is needed to ensure these deals take place.”
However, Hitachi’s chairman Toshiaki Higashihara warned that if Labour does not revive the Birmingham to Manchester leg of HS2, which was cancelled by former prime minister Rishi Sunak, jobs could again be at risk.
“If [the northern leg] stays cancelled, then the volume of work at Newton Aycliffe goes down,” he told the Financial Times, “so the issue is rising in terms of the extent to which we must think about manpower.
“If the Labour government doesn’t re-examine plans within one year, it’s going to be a problem.”
Sir Keir said in response that the last government made a “complete mess” of HS2 but did not appear to suggest that he would consider reinstating plans for the northern leg.
Downing Street has previously rejected reports that Labour could reverse the decision and extend the line beyond its current planned stretch.