🚗⚡ Zero Emission Vehicle Mandate

Commons Chamber

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The UK government has announced a robust plan to support the automotive industry’s transition to electric vehicles, maintaining the 2030 phase-out of new petrol and diesel cars and the 2035 target for all new cars and vans to be zero emission. The plan includes increased flexibility for manufacturers, reduced fines for missing EV targets, and significant investments in EV infrastructure and battery technology to boost industry confidence and consumer demand. Despite opposition criticism and concerns about US tariffs, the government insists these measures will protect jobs and drive growth in the sector. Public demand for electric vehicles is growing, with sales surging and new charging infrastructure being installed rapidly across the country.

Summary

  • The Secretary of State for Transport, Heidi Alexander, announced a zero emission vehicle (ZEV) mandate to support the UK automotive industry’s transition to electric vehicles (EVs).
  • The government reaffirmed its commitment to phasing out new petrol and diesel car sales by 2030 and ensuring all new cars and vans are zero emission by 2035.
  • Hybrid vehicles will be allowed until 2035, providing a transitional step towards full electrification.
  • The ZEV mandate will offer more flexibility to manufacturers, allowing them to meet targets more effectively, including the ability to sell more EVs later in the decade and extend credit borrowing and repayment until 2030.
  • Fines for missing ZEV targets have been reduced from £15,000 to £12,000 per vehicle, with any fines collected being reinvested into the sector.
  • Over £2.3 billion is available to support the industry and consumers, including funding for battery factories, EV supply chains, and charging infrastructure.
  • EV sales have seen significant growth, with a 43% increase in March and EVs accounting for one in four new car sales in February.
  • The UK currently has over 75,000 public charge points, with more than £6 billion in private investment planned for further rollout by 2030.
  • Small and micro-manufacturers are exempt from the new measures, and vans have an additional five years to transition to zero emissions.
  • The government aims to support job creation and growth in battery production, EV supply chains, and infrastructure, ensuring the UK remains a leader in the zero emissions transition.
  • The opposition criticized the government’s plans, arguing they do not address the challenges posed by US tariffs on UK automotive exports and the impact of recent tax changes on the industry.
  • The Secretary of State defended the government’s actions, emphasizing the need for certainty and support for the automotive sector amidst global economic challenges.

Divisiveness

The session displays a moderate level of disagreement, primarily between the Secretary of State for Transport, Heidi Alexander, and the shadow Secretary of State, Gareth Bacon. The disagreements are centered around the effectiveness and impact of the zero emission vehicle (ZEV) mandate and related policies on the automotive industry. Here are the key points of contention:

  1. Policy Certainty and Impact: Gareth Bacon criticizes the Labour Government for contributing to uncertainty in the automotive sector, claiming that their policies have not placed the sector in a better position than when the Conservatives left office. He argues that the measures announced are mere ‘tinkering at the edges’ and do not address the real challenges faced by the industry, such as the impact of US tariffs and the national insurance jobs tax. In contrast, Heidi Alexander defends the government’s actions, stating that they are providing certainty and support to the industry, and accuses the previous Conservative government of causing uncertainty by delaying the phase-out date for petrol and diesel cars.

  2. Consumer Demand and Market Response: Bacon points out the low consumer demand for electric vehicles (EVs), with only 10% of private purchases being electric in 2024, and questions the government’s strategy of forcing consumers to buy EVs. He also criticizes the reduction in fines for missing EV sales targets as insufficient. Alexander counters by highlighting the growth in EV sales and the UK’s position as the third largest market for EVs globally, suggesting that demand is increasing and that the government’s measures are appropriate.

  3. Economic Impact and Tariffs: The imposition of US tariffs on UK automotive exports is a significant point of disagreement. Bacon argues that these tariffs, combined with the government’s jobs tax, create a ‘perfect storm’ for the automotive sector. Alexander acknowledges the tariffs but emphasizes the government’s efforts to negotiate a better deal and the support provided to the industry through the ZEV mandate adjustments.

  4. Support for Industry and Infrastructure: There is some disagreement on the adequacy of government support for the automotive industry and EV infrastructure. While some members, like Paul Kohler from the Liberal Democrats, suggest additional measures such as lowering VAT on public charging and reintroducing the plug-in car grant, Alexander defends the government’s current investments and plans for infrastructure development.

Overall, the session shows a clear divide between the government and the opposition on the effectiveness of the ZEV mandate and related policies, with the government defending its approach and the opposition highlighting perceived shortcomings and negative impacts. However, the disagreements are not extreme, and there is some acknowledgment of the government’s efforts by other members, which keeps the level of disagreement at a moderate level.