By GREG HEFFER, POLITICAL CORRESPONDENT FOR MAILONLINE
Published: 21:39 AEDT, 21 November 2024 | Updated: 22:01 AEDT, 21 November 2024
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Labour is set to hold firm on electric vehicle targets despite pleas from car manufacturers to spare them from fines.
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.
The mandate is set to increase 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, despite fears the EV mandate is putting jobs and investment at risk in the UK.
Nissan has warned of a 'potentially irreversible impact' on the automotive sector by 'undermining the business case for manufacturing cars in the UK'.
But, according to the Financial Times, the Government is resisting pressure to weaken the mandate or to delay the imposition of fines.
Asked if ministers could accept a request by some carmakers to delay introducing penalties until the end of 2025, an official told the newspaper: 'That is not going to happen.'
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
Nissan has warned of a 'potentially irreversible impact' on the automotive sector by 'undermining the business case for manufacturing cars in the UK'
Transport Secretary Louise Haigh held talks with firms yesterday and was told of their concerns about the EV mandate
Transport Secretary Louise Haigh and Business Secretary Jonathan Reynolds held talks with firms yesterday and were told of their concerns about the EV mandate.
It came hours after Ford 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.
According to the Society of Motor Manufacturers and Traders (SMMT), 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.
Mike Hawes, chief executive of the (SMMT), said yesterday's meeting was 'an important opportunity to restate the UK automotive industry's commitment to both economic growth and net zero.'
He added: 'The industry also made clear its concerns about the pace of the EV transition and the negative effect this is having on the health of the overall market and the attractiveness of the UK as a manufacturing location.
'A strong market and manufacturing base that sustains jobs and drives growth requires workable regulation backed by support for consumers – fiscal incentives and confidence that the charging network will be there when it is needed.
'We will now work urgently with Government to identify any adjustments necessary to help the industry and Government meet their targets, instilling confidence in the consumer and other stakeholders, all of whom are part of this transition.'
It is reported that ministers have not ruled out lowering the proposed fines on manufacturers, or adding 'flexibilities' to the EV mandate.
This could include allowing firms to count British-made vehicles sold abroad in their sales targets.
A Government spokesperson said: 'Ministers from across Government have met with automotive sector and industry representatives to discuss the transition to electric vehicles, and how the Government can support continued growth of the sector.
'Recognising the global challenges the industry has been facing, ministers underlined the Government's commitment to working constructively and in close partnership with the sector as we support the transition to electric vehicles by 2030.
'The UK automotive sector now has the fastest growth of zero-emission vehicles of any major European market.
'And we're providing more than £2.3billion to support industry and consumers in making the switch, with 57 new public electric vehicle chargers added on average each day.']
Speaking in the House of Commons this morning, Tory MP Richard Holden said job losses at Ford are a result, in part, of duties imposed on electric vehicles.
He said: 'Yesterday Ford announced that 4,000 jobs are going across Europe including 800, many of which (are) in my constituency of Basildon and Billericay.
'The real concern there is because of the lack of take-up of electric vehicles because the Government isn't providing clear enough long-term support and secondly because of the extra taxes being imposed on both ICE (internal combustion engine) vehicles and electric vehicles as vehicle excise duty at the Budget.'
Transport minister Mike Kane replied: 'The Secretary of State did meet with Ford yesterday. We understand this is a concerning time for workers at Ford especially as it's a significant player in the UK's automotive industry.
'We did commit £200million in the Budget for this area of work and we hope to alleviate this situation as soon as humanly possible.'
Published by Associated Newspapers Ltd
Part of the Daily Mail, The Mail on Sunday & Metro Media Group
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