The government is anticipated to initiate a consultation on the suggested amendments within the forthcoming weeks. Sir Keir Starmer is reportedly poised to dismantle one of Britain's key green motoring initiatives following growing concerns that it threatens employment and increases costs for drivers.
In a substantial departure from Labour's net zero strategy, ministers are anticipated to soften regulations compelling car manufacturers to sell progressively higher numbers of electric vehicles. The shift is believed to stem from anxieties raised by industry leaders, trade unions and business ministers that existing targets are unachievable and threaten one of Britain's most crucial manufacturing industries.
Current regulations stipulate that 80% of all new cars sold in the UK must be fully electric by 2030. However, reports indicate that target may be slashed significantly to merely 50%. The development marks a considerable blow for Energy Secretary Ed Miliband, who has championed the swift shift to electric vehicles as central to Labour's pursuit of net zero emissions.
Industry figures have consistently cautioned that the regulations are pushing manufacturers into expensive discount schemes to convince hesitant consumers to embrace battery-powered vehicles. Firms failing to meet government quotas face penalties of up to £12,000 for every vehicle sold beyond their permitted threshold. The sector calculates the policy has already cost manufacturers approximately £10 billion across its first two years through incentives, discounts and compliance requirements.
The Zero Emission Vehicle (ZEV) mandate was introduced by Boris Johnson's government and came into force in 2024. It mandated that 22% of car sales must be electric in its inaugural year, climbing progressively each year until hitting 80% in 2030. That year is also set to signal the end of new petrol and diesel car sales in Britain. Industry leaders have cautioned that the rate of transformation is outpacing consumer appetite, despite increasing enthusiasm for electric vehicles.
The threat of plant closures and redundancies is understood to have been a crucial factor in Starmer's decision to step in. Sharon Graham, general secretary of the Unite union, recently cautioned that the policy was "significantly contributing to the loss of automotive jobs in Britain". She said: "This is a clear fact. The targets must be radically reduced. If the government sits on its hands it will be responsible for the decimation of the automotive industry." The UK automotive sector generates approximately £25 billion annually for the economy, sustains 183,000 direct jobs and a further 600,000 positions across the supply chain.
Labour MP Liam Byrne, chairman of the Business and Trade Select Committee, has also cautioned ministers that manufacturers are investing billions of pounds subsidising electric vehicle sales in a bid to meet government targets. The anticipated changes would align Britain more closely with the strategy adopted in Europe. The European Union has already relaxed its own plans, replacing rigid electric vehicle sales targets with wider carbon reduction objectives and allowing a more substantial place for hybrid and traditional vehicles past 2030.
Nevertheless, environmental activists and charging sector leaders have responded with fury to suggestions of a retreat. Simon Smith, chief executive of charging specialist Voltempo, argued that diluting the mandate would benefit the "slowest movers" within the industry. He informed the Sunday Times that drivers are progressively opting for electric vehicles as they can deliver reduced running expenses and insulation from unpredictable oil prices. The government is anticipated to initiate a consultation on the suggested amendments within the forthcoming weeks.
Any reform would additionally necessitate approval from devolved administrations, creating the possibility of a political clash with ministers in Scotland and Wales regarding the future trajectory of Britain's green transport strategy.
