The boss of a major UK manufacturing firm based in Oxford is considering moving investment to the US or Europe due to better subsidies being offered there.

Unipart, run by John Neill, employs more than 8,000 people.

The company makes vehicle parts and manages supply chain logistics.

READ MORE: Police charge man in connection with robbery and assault at Tesco store

Mr Neill told the BBC that Britain can no longer compete on a level playing field when it comes to investment.

The US has spent billions of dollars supporting electric car firms and other forms of green energy.

The Inflation Reduction Act (IRA) that was passed last year promises to give out huge subsidies to US businesses producing greener technologies.

To receive the incentives, however, companies must be manufacturing on US soil.

Many of the projects already underway are concentrated in the former coal areas of the "Rust Belt" which spans states such as Pennsylvania, West Virginia, Kentucky and Michigan.

Similarly in Europe there are plans to ease state help rules for firms in the green sector.

But the UK is yet to announce its investment strategy when it comes to this branch of the economy, and instead the chancellor told the BBC that it was waiting for the EU to make an announcement before any decisions were made.

Mr Neill said these developments had led him to ‘think very carefully’ about Unipart’s investment strategy in the US.

He is an influential player on the of the car industry body, the SMMT.  

Anneliese Dodds, MP for Oxford East and former shadow chancellor between April 2020 and May 2021, was contacted for comment on what this means for Oxford.

READ MORE: Chinese takeaway handed new low hygiene rating

But she failed to respond.

This comes following criticism that Ms Dodds has not been standing up for local issues on behalf of her constituents in parliament, particularly surrounding the Low Traffic Neighbourhood scheme or LTNs.

Nevertheless, industrial experts in the UK have warned that if the government does not act soon and come up with a plan, it risks missing out on major manufacturing investments.

A former Aston Martin boss has gone as far to say that the UK risks jeopardises the country’s entire car industry.

Unipart were contacted for comment in relation to the remarks made by Mr Neill.

A spokesperson for the company explained that Unipart has no immediate intentions to move abroad.

Unipart chief executive officer Darren Leigh reiterated Unipart’s commitment to the UK, saying that Unipart will shortly be releasing its financial results in which Unipart reports a strong year in 2022 and sees continued growth this year.

The company will announce increased profits and revenue, and lists a number of new contracts and contract extensions with existing customers.