Britain's automotive sector has launched an impassioned plea to the Chancellor ahead of next month's Spring Budget, warning that the country's electric vehicle revolution risks stalling without immediate government intervention.
The Society of Motor Manufacturers and Traders (SMMT), representing the UK's vital car industry, has outlined critical measures needed to maintain competitiveness and protect thousands of manufacturing jobs across the nation.
Urgent Calls for Strategic Support
Mike Hawes, SMMT Chief Executive, emphasised the precarious position of UK automotive manufacturing, stating that strategic support is essential to prevent Britain falling behind international rivals. "We're seeing other major economies deploying substantial packages to support their green industries," Hawes noted. "The UK cannot afford to be left in the slow lane."
Key Demands for Spring Budget
The industry's budget submission focuses on several critical areas:
- Reduced VAT on electric vehicle purchases to stimulate consumer demand
- Extension of the plug-in car grant for private buyers
- Addressing crippling energy costs that disadvantage UK manufacturers
- Accelerated rollout of charging infrastructure nationwide
- Support for battery manufacturing and supply chain development
Competitiveness at Stake
Industry leaders highlight that UK manufacturers face electricity costs up to 50% higher than European competitors, creating an unsustainable competitive disadvantage. This comes at a critical juncture as the industry navigates the challenging transition from internal combustion engines to electric vehicles.
"The clock is ticking on our ability to attract the investment needed to secure the long-term future of UK automotive manufacturing," Hawes warned. "Without decisive action in the Spring Budget, we risk seeing production and jobs migrate to more supportive markets."
Broader Economic Implications
The automotive sector remains a cornerstone of British manufacturing, supporting approximately 800,000 jobs and contributing billions to the economy. The SMMT's intervention underscores the sector's critical importance as the government prepares its budget plans.
With the 2035 deadline for ending sales of new petrol and diesel vehicles approaching, industry executives stress that immediate action is required to ensure Britain remains an attractive location for automotive investment in the electric age.
