{"id":121738,"date":"2026-06-14T12:35:00","date_gmt":"2026-06-14T11:35:00","guid":{"rendered":"https:\/\/en.econostrum.info\/uk\/?p=121738"},"modified":"2026-06-14T12:29:26","modified_gmt":"2026-06-14T11:29:26","slug":"government-set-major-u-turn-electric-cars","status":"publish","type":"post","link":"https:\/\/en.econostrum.info\/uk\/government-set-major-u-turn-electric-cars\/","title":{"rendered":"Government Set for Major U-Turn on Electric Cars after Pressure from Industry"},"content":{"rendered":"\n<p>The UK government is preparing changes to its electric vehicle sales <strong>requirements <\/strong>after Prime Minister Keir Starmer reportedly decided to scale back a key target within the Zero Emission Vehicle (ZEV) mandate.<\/p>\n\n\n\n<p>According to The Sunday Times, Starmer has overruled Energy Secretary Ed Miliband and backed a slower transition to electric vehicles following pressure from automotive companies, the Unite union and Business Secretary <a href=\"https:\/\/uk.linkedin.com\/in\/peter-kyle-a3004712\" target=\"_blank\" rel=\"noopener\">Peter Kyle<\/a>. An announcement is expected in the coming weeks, although any changes would be subject to consultation and would require support from devolved administrations before being implemented across the UK.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Industry Concerns Drive Proposed Policy Shift<\/strong><\/h2>\n\n\n\n<p>Under the reported plans, the requirement that 80 per cent of new car sales should be fully electric by 2030 would be reduced to 50 per cent. The move would alter the pace of the transition set out under the<strong> ZEV mandate<\/strong>, which was introduced during Boris Johnson\u2019s government in 2020 and came into force in 2024.<\/p>\n\n\n\n<p>The mandate requires manufacturers to meet annual electric vehicle sales quotas. It initially obliged carmakers to ensure that 22 per cent of vehicle sales were electric. That figure rose to 28 per cent last year and was scheduled to reach 33 per cent in 2026 before increasing further towards the<strong> 2030 target<\/strong>.<\/p>\n\n\n\n<p>According to the report, car industry leaders have argued that the existing requirements could force businesses to withdraw investment from the UK. Concerns over potential job losses are also understood to have influenced Starmer\u2019s decision.<\/p>\n\n\n\n<p>Sharon Graham, general secretary of Unite, said the targets \u201c<em>must be radically reduced<\/em>\u201d. She warned that if the government failed to act, it \u201c<em>will be responsible for the decimation of the automotive industry<\/em>\u201d.<\/p>\n\n\n\n<p>The British automotive sector contributes <strong>\u00a325 billion<\/strong> to the economy and directly supports 183,000 jobs. Manufacturers have also criticised the <a href=\"https:\/\/en.econostrum.info\/uk\/starmer-eases-zev-mandate-evs-amid-us-tariff\/\" data-type=\"post\" data-id=\"107525\">ZEV <\/a>framework because they have had to offer substantial discounts on electric vehicles to avoid penalties. Firms face fines of <strong>\u00a312,000<\/strong> for each vehicle sold beyond the permitted quota.<\/p>\n\n\n\n<p>The reported decision represents a notable setback for <strong>Miliband<\/strong>, who has defended the government\u2019s electric vehicle strategy and argued that it would strengthen the UK\u2019s transition away from petrol and diesel vehicles.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-x wp-block-embed-x\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">EXCL with <a href=\"https:\/\/x.com\/ojngill?ref_src=twsrc%5Etfw\">@ojngill<\/a>: Keir Starmer to water down electric vehicles sales targets<br><br>Zero emission vehicle mandate to be reduced from 80 per cent of new car sales to 50 per cent by 2030 <a href=\"https:\/\/t.co\/2yKjhWDo3O\">pic.twitter.com\/2yKjhWDo3O<\/a><\/p>&mdash; Lara Spirit (@lara_spirit) <a href=\"https:\/\/x.com\/lara_spirit\/status\/2065909268650266646?ref_src=twsrc%5Etfw\">June 13, 2026<\/a><\/blockquote><script async src=\"https:\/\/platform.x.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Investment Groups Warn against Weakening the Mandate<\/strong><\/h2>\n\n\n\n<p>While the proposed changes may be welcomed by parts of the automotive sector, they have prompted concern among organisations linked to electric vehicle investment and infrastructure.<\/p>\n\n\n\n<p>According to the UK Sustainable Investment and Finance Association (<a href=\"https:\/\/uksif.org\/\" target=\"_blank\" rel=\"noopener\">UKSIF<\/a>), the ZEV mandate has played a significant role in attracting private investment into charging networks across the country. The organisation argues that investors have relied on the policy framework as evidence of the government\u2019s long-term commitment to transport electrification.<\/p>\n\n\n\n<p>UKSIF chief executive <a href=\"https:\/\/uk.linkedin.com\/in\/jamesdominicalexander\" target=\"_blank\" rel=\"noopener\">James Alexander<\/a> said the mandate was \u201cvital\u201d for driving investment into charging infrastructure. He added that the framework had given investors confidence to commit large amounts of private capital to expanding charging networks nationwide.<\/p>\n\n\n\n<p>Alexander also warned that weakening the targets could send negative signals to investors and affect future funding decisions. He said this could threaten financing for charging infrastructure at a time when more consumers are choosing electric vehicles.<\/p>\n\n\n\n<p>The wider policy debate comes against the backdrop of previous changes to the timetable for ending sales of new petrol and diesel cars. Rishi Sunak delayed the ban from 2030 to 2035, but Labour later pledged to restore the original 2030 deadline in its election manifesto. The reported changes to the ZEV mandate would not alter that commitment, according to the information currently available.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Prime Minister is expected to reduce the pace of the UK\u2019s shift to electric cars, overruling concerns from within his own government. The proposed change follows warnings from manufacturers and unions about investment and jobs.<\/p>\n","protected":false},"author":10,"featured_media":121740,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[39],"tags":[],"class_list":["post-121738","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-energy","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33","no-featured-image-padding"],"_links":{"self":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/121738","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/comments?post=121738"}],"version-history":[{"count":2,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/121738\/revisions"}],"predecessor-version":[{"id":121741,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/121738\/revisions\/121741"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/media\/121740"}],"wp:attachment":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/media?parent=121738"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/categories?post=121738"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/tags?post=121738"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}