Prime Minister Keir Starmer has confirmed that the Government is backing the British automotive sector by announcing new changes to the Zero Emission Vehicle mandate.
From 2030, new sales of petrol and diesel cars will be banned, delivering on Labour's pre-election pledge to reinstate the original deadline at the end of the decade.
However, under the new rules, manufacturers will be able to sell full hybrid and plug-in hybrid vehicles until 2035, at which point only new zero emission vehicles will be sold.
The new rules follow a consultation which ended in February which looked into whether the Government should reinstate the 2030 deadline, as well as asking manufacturers and key players whether "regulatory flexibilities" should be introduced.
Do you have a story you'd like to share? Get in touch by emailingmotoring@gbnews.uk
Keir Starmer aims to deliver certainty for manufacturers with the ZEV mandate announcement
PA/GETTY
Labour now says it will provide stability and certainty to British manufacturers following the consultation, which received more than 600 responses.
Manufacturers reported that flexibility would be the biggest help in the short term to ensure they are compliant with the Zero Emission Vehicle (ZEV) mandate.
Commenting on the changes, Keir Starmer said: "Global trade is being transformed so we must go further and faster in reshaping our economy and our country through our Plan for Change.
"I am determined to back British brilliance. Now more than ever UK businesses and working people need a Government that steps up, not stands aside.
"That means action, not words. So today I am announcing bold changes to the way we support our car industry."
The changes to the ZEV mandate aim to protect British manufacturers
GETTYOther changes unveiled by the Prime Minister include a 20 per cent cut to the fines manufacturers face for producing non-compliant vehicles over the threshold.
By the end of the year, brands must have at least 28 per cent of new sales come from zero emission cars. Any company producing more polluting petrol or diesel vehicles previously faced a £15,000 fine, although this will now be cut to £12,000 per car.
Flexibilities will also be introduced to ensure "very few fines" will actually be paid by manufacturers who fail to meet the ZEV mandate targets.
A loophole will also be introduced for small and micro-volume manufacturers like McLaren, Lotus and Caterham, who will now be exempt from the terms of the mandate.
Micro-volume manufacturers, which produce less than 1,000 vehicles a year, and small volume manufacturers (between 1,000 and 2,499 new vehicles) will not have to deal with requirements for hybrids between 2030 and 2035.
Prime Minister Keir Starmer acknowledged the changing landscape of global trade
PA
Small volume manufacturers will still be required to meet a "nominal" CO2 reduction target across their fleets after 2030, which will be agreed between the brands and the Government.
This change will protect British supercars and "cutting-edge engineering" as Labour continues to meet the terms of its Plan for Change.
Manufacturers and industry experts had previously warned that any changes to the ZEV mandate would need to give certainty, or drivers could turn away from zero emission vehicles, putting net zero targets at risk.
Transport Secretary Heidi Alexander acknowledged the impact of "global economic challenges" and said the automotive industry deserved "clarity, ambition and leadership".
The MP for Swindon South added: "Our ambitious package of strengthening reforms will protect and create jobs - making the UK a global automotive leader in the switch to EVs - all the while meeting our core manifesto commitment to phase out petrol and diesel vehicles by 2030.
LATEST DEVELOPMENTS:
- Highway Code changes would deal with 'key issue' amid calls for drivers to face regular 'assessment'
- Major car brands recall 184,000 vehicles amid serious fears of doors opening mid-journey and engine fires
- Petrol and diesel drivers 'losing out' as drop in fuel prices could be 'short-lived' for hard-pressed Britons
Former Stellantis CEO Carlos Tavares blamed the ZEV mandate on his decision to close Vauxhall's Luton factory
REUTERS"Once again, the Prime Minister's decisive and bold actions show how we’re on the side of British business while harnessing the opportunities of the zero emissions transition to create jobs and drive growth, securing Britain's future, and delivering our Plan for Change."
The British car industry will be backed by further changes included in a modern Industrial Strategy, which will be published in full later this year.
The Government has already spent £2.3billion on boosting British manufacturing and improving charging infrastructure, with 76,840 public charging devices now found around the UK.