Keir Starmer could slash electric car sales targets in major update

UK Labour leader Keir Starmer is reportedly preparing to reduce the 80% electric vehicle sales target by 2030 to 50%, citing industry warnings of job losses and financial strain. The Zero Emission Vehicle mandate, introduced by Boris Johnson’s government, has already cost manufacturers £10 billion in incentives and compliance measures, prompting calls for a policy overhaul.
UK Labour leader Sir Keir Starmer is considering a major overhaul of the government’s electric vehicle (EV) sales targets, potentially cutting the 2030 requirement from 80% to 50%. The move follows concerns from manufacturers, trade unions, and business ministers that the current Zero Emission Vehicle (ZEV) mandate—introduced by Boris Johnson’s government in 2024—is unsustainable, risking job losses and factory closures in the UK’s automotive sector. Under the existing rules, 22% of new car sales must be electric in 2024, rising annually to 80% by 2030, with fines of up to £12,000 per non-compliant vehicle. Industry leaders argue the policy has forced manufacturers to spend billions on discounts and incentives, with estimates suggesting £10 billion has already been lost in the first two years. The Unite union’s Sharon Graham warned the targets are accelerating job losses in Britain’s automotive industry, which contributes £25 billion annually to the economy and supports 883,000 jobs. The proposed changes align more closely with the European Union’s approach, which has replaced rigid EV targets with broader carbon reduction goals while allowing hybrids and conventional vehicles beyond 2030. However, environmental groups and charging industry executives, like Voltempo’s Simon Smith, have criticized the potential watering down of the mandate, arguing it could slow progress toward net-zero emissions. Labour MP Liam Byrne, chairman of the Business and Trade Select Committee, has also raised concerns, stating that manufacturers are subsidizing EV sales to meet targets, straining their finances. The government is expected to launch a consultation on the proposed changes, though any adjustments would require approval from devolved administrations like Scotland and Wales. The decision marks a retreat from Energy Secretary Ed Miliband’s push for rapid EV adoption as part of Labour’s net-zero agenda. While the policy aims to phase out new petrol and diesel sales by 2030, motoring bosses argue the transition is outpacing consumer demand, threatening the sector’s future.
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