Keir Starmer is set to water down the UK’s electric vehicle sales mandate, dealing a significant blow to energy secretary Ed Miliband’s net-zero agenda.
According to reports in The Sunday Times, the prime minister overruled Miliband following pressure from the automotive industry, the Unite union, and business secretary Peter Kyle.
An announcement outlining the changes is expected in the coming weeks and will slow the pace at which Britain must transition to electric cars.
The zero emission vehicle mandate’s requirement that 80 per cent of new car sales be all-electric by 2030 will be reduced to 50 per cent under the revised plans.
The changes will be subject to a consultation and will require the backing of devolved administrations before they can be rolled out nationwide.
Motoring bosses had previously warned that the mandate would force them to pull investment from the UK, with the prospect of significant job losses understood to be a key factor in Starmer’s decision.
Sharon Graham, the general secretary of Unite, said the “targets must be radically reduced,” warning that if the government fails to act it “will be responsible for the decimation of the automotive industry.”
The British car industry generates £25bn for the economy and is directly responsible for 183,000 jobs across the country.
Industry chiefs have also expressed anger over the existing mandate, which forced manufacturers to offer steep discounts to avoid fines of £12,000 per car sold over the quota.
Miliband has argued it was “very important” that the government strengthened its “commitment to our world leading EV transition plan,” and insisted the mandate would benefit consumers and support domestic manufacturing.
The decision nonetheless marks a significant U-turn for Miliband, who has faced mounting pressure in recent months to moderate his stance on oil and gas drilling to support economic growth.
UK Sustainable Investment and Finance Association chief executive James Alexander warned that investors had been “absolutely clear that the Zero Emission Vehicle mandate is vital for driving investment into our charging infrastructure.”
Alexander added that the framework had “given the market confidence to commit vast sums of private capital to building out these networks across the country.”
He cautioned that “any attempt to water down these targets could send warning signals to these investors about the government’s long-term commitment to electrifying our transport network.”
Alexander further warned this “could threaten future financing for charging infrastructure, at a time when more and more consumers are seeking to switch to electric vehicles.”
The ZEV mandate was introduced under Boris Johnson in 2020, came into force in 2024, and obligated manufacturers to ensure at least 22 per cent of car sales were electric from the outset.
Rishi Sunak had previously pushed back the ban on new petrol and diesel car sales from 2030 to 2035, before Labour reinstated the earlier deadline in its general election manifesto.