General Motors-owned Vauxhall Motors has announced that it is to end production at its Luton plant, with the loss of over 2000 jobs.

Tony Blair said that it was "very bad news", and officials offered advice and sympathy but ruled out intervention to keep the plant open. The closure is part of GM's world-wide restructuring and Vauxhall admitted that the strength of sterling was a factor in the decision.

The unions are promising to fight the closure, which many workers heard on the radio before being told officially, and accuse the government of keeping them in the dark despite a meeting with trade and industry secretary, Stephen Byers, on Monday night.