Staff at a UK packaging factory have been left "shocked and disappointed" at news of its potential closure after 58 years. Major global paper firm DS Smith confirmed a "proposal had been made" to cease operations at the packaging site in Launceston, Cornwall, this week. The firm said it was "entering consultation with around 167 employees" following a "review of UK packaging operations" amid "tough trading conditions".

Adrian Parsons, Liberal Democrat member of Cornwall Council, told the BBC: "I'm hearing shock and disappointment from staff - they are worried about losing their jobs and about the future."

Ben Maguire, Lib Dem MP for North Cornwall, also criticised the Labour Government's "anti-business" approach to UK tax rises, warning that companies such as DS Smith were being "hammered".

Mr Maguire said his inbox was "absolutely flooded" with business owners sounding the alarm over hikes to National Insurance and the minimum wage, which, alongside the rising cost-of-living, have been a "perfect storm" for small to medium enterprises (SME).

The MP added that employees at the Launceston site would be "really anxious and uncertain" and called for the Government to change its stance towards Cornwall, which he suggested wasn't getting a "slice" of regional growth investment.

DS Smith previously made 70 staff redundant at its base in Louth, Scotland, in 2024, and closed sites in Plymouth, Derbyshire, Newcastle, Sheerness and Wellingborough following consultations last year.

A spokesperson said: "To improve efficiencies across out business and to ensure we respond to the evolving needs of our customers in what are tough trading conditions for the industry, we have undertaken a review of our UK packaging operations.

"As a result of this review, we can confirm a proposal has been made to close a site within our network. A consultation process with employees is ongoing, during with DS Smith will not be commenting further."

A Government spokesperson said: "While this is a commercial decision for DS Smith, we understand this will be a concerning time for workers and their families and support is available for those affected.

"The decisions we made at the Budget mean we can stabilise the economy and deliver support for families and businesses."