Labour will bow to pressure from car manufacturers and rethink strict rules on the sales of electric vehicles.
Downing Street today confirmed ministers will launch a consultation on current plans following intense lobbying by firms.
Under an existing Government mandate, at least 22 per cent of new cars sold by every manufacturer in the UK this year must be zero-emission vehicles (ZEV).
The mandate is set to increase to 28 per cent next year and will rise each year over the next decade – reaching 80 per cent in 2030 and 100 per cent in 2035.
This is when there will be a ban on the sale of all new non-zero-emission cars as part of the Government’s Net Zero commitments.
Carmakers are set to be fined £15,000 per polluting car sold above the limits.
But firms have been warning ministers that the ZEV mandate is putting jobs and investment at risk in the UK.
Nissan recently cautioned about a ‘potentially irreversible impact’ on the automotive sector by ‘undermining the business case for manufacturing cars in the UK’.
Ford has said it will cut about 800 roles in the UK over the next three years as part of a wider European jobs cull, amid pressure from ‘lower-than-expected demand’ for electric cars.
The Prime Minister’s official spokesman said there would be a consultation on the existing plans.
He added: ‘The Government remains committed to the 2035 phase out date. But we do recognise the challenges the industry faces.’
Business Secretary Jonathan Reynolds and Transport Secretary Louise Haigh (pictured today) recently met with car manufacturers and were told of their concerns
Under a Government mandate, at least 22 per cent of new cars sold by every manufacturer in the UK this year must be zero-emission vehicles (ZEV)
Nissan recently cautioned about a ‘potentially irreversible impact’ on the automotive sector by ‘undermining the business case for manufacturing cars in the UK’
Figures from the Society of Motor Manufacturers and Traders (SMMT) showed fully electric cars made up 18 per cent of new car sales in the first 10 months of this year – below the 22 per cent target for 2024.
Business Secretary Jonathan Reynolds and Transport Secretary Louise Haigh last week met with vehicle manufacturers and were told of their concerns about the ZEV mandate.
And, according to Politico, Mr Reynolds will tonight tell firms that he and Ms Haigh have ‘heard you loud and clear on the need for support to make this transition a success’.
The website reported the Business Secretary will use an SMMT dinner in central London this evening to inform manufacturers of the consultation on possible changes.
But Government sources suggested there would not be a weakening of the percentage targets for electric vehicle sales over the coming years.
It has also previously been claimed that ministers will refuse a request by some carmakers to delay introducing fines for missed targets until the end of 2025.
LBC reported that ministers could instead relax the rules around selling more cars abroad, change the definitions between cars and vans which have stricter rules, or allow companies to kick back more of the sales into later years.
They could also tweak the rules to allow manufacturers to sell more hybrids, rather than solely electric cars, buy more credits from solely electric firms like TESLA, or look again at Government grants.
Vicky Read, chief executive of ChargeUK, which represents the UK’s electric vehicle charger industry, said: ‘We’re pleased to hear reports that the Government is moving ahead with its promised consultation on the ZEV mandate, which we hope will bring much needed clarity to the UK’s electric future and unlock further investment.
‘Government could not have been clearer last week in its meeting with the automotive and charging industries that there would be no tinkering with the percentages of electric cars that must be sold ahead of 2030.
‘Any backsliding on that risks inducing the uncertainty that all sides agreed is the very enemy of the EV transition.
‘Billions of pounds of investment in the EV charging infrastructure roll out will be put at risk should the ZEV mandate be redrawn.
‘This would be particularly foolish given the charging industry is busy deploying the infrastructure that is essential for the automotive sector to sell EVs and for the UK to meet its net zero goals.
‘ChargeUK members are getting on with the job – putting a new charge point in the ground every 25 minutes on average, and urgently need reassurance to enable them to follow through on our commitment to invest over £6billion up to 2030 ensuring we stay ahead of demand.’