Labour leader Keir Starmer is reportedly poised to scale back the UK's electric vehicle (EV) sales targets, sparking a significant shift in the country's net-zero agenda just weeks after Energy Secretary Ed Miliband vowed to strengthen the EV transition plan. Industry pressure has led Mr Starmer to consider reducing the Zero Emission Vehicle (ZEV) mandate's requirement for new car sales by 2030 from 80% electric models to 50%, an official announcement on which is expected in the coming weeks.
Motoring bosses have long warned that the existing ZEV mandate could compel them to withdraw investment from the UK, leading to substantial job losses within the sector. With the British car industry generating £25 billion annually and directly employing 183,000 people, manufacturers have been vocal about their concerns over the current targets. Sharon Graham, General Secretary of the Unite union, has stated that failure to act could lead to the "decimation of the automotive industry."
The proposed reduction in targets represents a notable departure from Mr Miliband's stance on strengthening the ZEV mandate, which he argued would benefit consumers and bolster domestic manufacturing. However, this decision may appease traditional car manufacturers who have been forced to offer significant discounts to avoid hefty fines of £12,000 per car sold over their quota.
James Alexander, Chief Executive of the UK Sustainable Investment and Finance Association (UKSIF), has warned that any dilution of the ZEV mandate could send negative signals to investors regarding the government's long-term commitment to electrifying the transport network. This, he claims, could jeopardise future financing for essential charging facilities at a time when consumer interest in EVs is growing.
The ZEV mandate was initially introduced by the Conservative government in 2020 and came into force in 2024, requiring 22% of new car sales to be electric. This figure was set to rise incrementally, reaching 80% by 2030, coinciding with a proposed ban on sales of new pure petrol and diesel cars – although former Prime Minister Rishi Sunak pushed back the ban's implementation date.