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Zero Emission Vehicle Mandate 2025-04-07
07 April 2025
Lead MP
The Secretary of State for Transport
Debate Type
Ministerial Statement
Tags
EconomyTaxation
Other Contributors: 36
At a Glance
The Secretary of State for Transport raised concerns about zero emission vehicle mandate 2025-04-07 in the House of Commons. A government minister responded. Other MPs also contributed.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Government Statement
Today, I am announcing significant measures to support the transition to electric vehicles in the UK automotive industry. The Government are maintaining their commitment to phasing out new petrol and diesel car sales by 2030, while all new cars and vans will be zero emission from 2035. We are increasing flexibility within the ZEV mandate, allowing manufacturers more freedom on how they meet targets, extending credit borrowing and earning periods, and reducing fines for missing targets from £15,000 to £12,000 per vehicle. The aim is not just to enforce change but to enable industry growth by aligning supply with demand. We are providing over £2.3 billion in funding to support battery factories, EV supply chains, and charging infrastructure. Public demand for electric vehicles has surged; March saw a 43% increase in sales compared to the same month last year. With more than 75,000 public charge points now available, families can save up to £1,000 annually on fuel costs by switching to EVs. Small and micro-manufacturers are exempt from new measures, and vans will have five additional years to transition to green technology.
Gareth Bacon
Con
Orpington
Question
Does the Secretary of State agree that this announcement does not significantly alter the position for the automotive industry, given the ongoing impact of US tariffs and national insurance jobs tax?
Minister reply
The Government's measures provide certainty and support to car manufacturers facing global challenges. Despite criticisms from Labour, we are committed to backing industry through practical reforms and funding, recognising the need for flexibility in meeting ambitious targets.
Mike Hill
Lab
Wansbeck
Question
Why is the government forcing people into buying electric vehicles with limited consumer demand? Is this not already in train before tariffs were announced?
Minister reply
The minister argues that these measures are necessary and significant for industry, contrary to claims of tinkering. She cites SMMT’s positive response and quotes from Jaguar Land Rover CEO supporting the changes.
Heidi Alexander
Lab
Derby North
Question
How will the Secretary continue this level of engagement with Toyota's Burnaston plant and support the transition to EVs?
Minister reply
The minister confirms that Toyota benefits from many announced changes, such as allowing sales of full hybrids after 2030. She also mentions reinvesting fines in supporting the sector and providing continued assurance.
Paul Kohler
LD
Wimbledon
Question
What conversations has the Secretary had about lowering public charging rate to 5%? What additional measures are being considered regarding tariffs?
Minister reply
The minister assures that VAT variation is reviewed, but standard rates apply. She mentions investing £380 million in overnight chargers for affordability and confirms today's announcement as a response to consultations.
Bill Esterson
Lab
Sefton Central
Question
How can the Secretary work with Energy Secretary to reduce electricity costs for those unable to charge at home?
Minister reply
The minister assures continued inter-departmental collaboration, noting that EVs are cheaper by up to £1000 a year compared to petrol cars. She mentions half of used electric cars sold under £20,000 and 29 new models under £30,000.
Basildon and Billericay
Question
He raises concerns about local businesses impacted by national insurance increases and new road charges in London, asking the Secretary of State to raise these issues with her colleagues. He also asks for confirmation on how long the plug-in van grant will be extended.
Minister reply
The Minister acknowledges the concerns raised but does not directly address them; she confirms that the plug-in van grant will continue beyond 2026.
Heidi Alexander
Con
Hammersmith
Question
Responds to Brokenshire’s question about London road charges and congratulates Mayor of London for opening a new river crossing, indicating the benefits for commuters.
Minister reply
N/A
Preet Kaur Gill
Lab/Co-op
Birmingham Edgbaston
Question
Concerned about Jaguar Land Rover pausing shipments to the US and asks if flexibilities are being built into mandate targets.
Minister reply
The Minister confirms that flexibilities have been provided, including an extension of borrowing flexibility, CO2 transfer cap expansion, and changes in measuring emissions from plug-in hybrids.
Julian Lewis
Con
New Forest East
Question
Asks about the second-hand EV market affordability for families unable to afford new vehicles.
Minister reply
The Minister notes that 80% of car purchases are in the second-hand market and mentions current positive trends, ensuring that the second-hand EV market remains affordable.
Scott Arthur
Lab
Edinburgh South West
Question
Welcomes the roll-out of EV charging infrastructure but questions its ability to meet demand.
Minister reply
The Minister assures that charge point infrastructure is expanding rapidly, with new chargers installed every 29 minutes. She also mentions working on battery health checks for used vehicles.
Mid Sussex
Question
Asks about supporting the automotive supply chain and an EU-UK customs union.
Minister reply
The Minister states that Cabinet Office leads on EU reset negotiations, while announcing a £2 billion fund for EV supply chain support.
Luke Akehurst
Lab
North Durham
Question
Concerns about Nissan Sunderland’s 6,000 staff and asks what further measures will be taken to support the sector.
Minister reply
The Minister commits to continuing EV charging infrastructure roll-out, plug-in vehicle grants for van purchases, and keeping under review additional demand-stimulating measures.
Jeremy Wright
Con
Kenilworth and Southam
Question
Clarifies the exemption status of smaller luxury manufacturers from existing mandate measures.
Minister reply
The Minister confirms that smaller and micro-manufacturers are exempt from ZEV mandates but must comply with 2035 phase-out dates.
Toby Perkins
Lab
Chesterfield
Question
Questions how to ensure home charging is easier for those living in council flats or terraced properties.
Minister reply
The Minister mentions guidance issued before Christmas on cross-pavement solutions and offers a grant of up to £350 for households with on-street parking.
Moray West, Nairn and Strathspey
Question
Asks about the involvement of devolved Administrations in policy development and carbon emission assessments.
Minister reply
The Minister thanks Scottish Government for assistance and confirms that all necessary consultations are ongoing with carbon assessment completed.
Wolverhampton North East
Question
Questions how the Secretary of State is responding to major employers like Jaguar Land Rover to ensure competitiveness and job security.
Minister reply
The Minister outlines support measures provided for JLR, including increased borrowing flexibility, expanded CO2 transfer cap, and changes in measuring emissions from plug-in hybrids.
Anneliese Dodds
Lab/Co-op
Oxford East
Question
Can my right hon. Friend explain how these changes will specifically benefit BMW Cowley, given its significance for UK manufacturing?
Minister reply
We are confirming today that we will maintain the existing CO2 scores for plug-in hybrids instead of using revised EU standards, which is particularly beneficial to BMW and the Mini Cowley plant.
Will Forster
LD
Woking
Question
Considering McLaren's significant reliance on US sales, will the Minister consider retaliatory tariffs against Tesla to protect British jobs?
Minister reply
McLaren benefits from an exemption we announced today for small and micro manufacturers. We are considering our position regarding the imposition of tariffs and consulting industry on future steps.
Chris Vince
Lab/Co-op
Harlow
Question
How can local councillors be guided to provide more off-street charging facilities in areas without adequate parking spaces?
Minister reply
We published guidance before Christmas that is vital for addressing this issue, alongside a grant for households.
Nick Timothy
Con
West Suffolk
Question
What are the current grid connections and how do they cope with growing demand from EVs?
Minister reply
The connections queue stands at 756 GW, but only 0.54 GW was delivered last month while the queue grew by 21.8 GW. I am in regular contact with the Energy Secretary to ensure grid capability for EV charging infrastructure.
Sarah Coombes
Lab
West Bromwich
Question
How will we support demand-side changes to increase EV charge points in towns like Oldbury and West Brom?
Minister reply
We are spending £200 million of public money alongside £6 billion of private investment to ensure that charge points are available where needed.
Matt Western
Lab
Warwick and Leamington
Question
Can the Government look again at support for manufacturers, which are subsidised in the sale of electric vehicles?
Minister reply
The automotive transformation fund is a sizeable investment committed by the Government. I am open to hearing my hon. Friend's ideas on how it might be utilised.
Ben Obese-Jecty
Con
Huntingdon
Question
What assessment has been made of grid capacity and upgrade costs for significant uplift in EV charging infrastructure?
Minister reply
The Department constantly reviews these matters. Regarding grid capacity, I refer the hon. Gentleman to my earlier answer to Nick Timothy.
Sally Jameson
Lab/Co-op
Doncaster Central
Question
Will the wider industrial strategy back British auto manufacturers and supply chains further?
Minister reply
I can confirm that our industrial strategy will be published soon, focusing on creating jobs in high-skilled industries and ensuring the right conditions for growth.
Richard Tice
Reform
Boston and Skegness
Question
Given the current state of UK car production, should zero emission targets be scrapped to ensure growth?
Minister reply
No, I do not agree. The number of new cars sold last year was 1.9 million, with a market growth of 2.6% and nearly 20% being EVs.
Tom Hayes
Lab
Bournemouth East
Question
How will the Government invest in charging infrastructure to ensure everyone can be part of the electric vehicle revolution?
Minister reply
This is a partnership between public and private sector investment. We will pay attention to Bournemouth, as we do for all other parts of the country.
Vikki Slade
LD
Mid Dorset and North Poole
Question
What consideration has been given to accelerating work on flexible generation storage to drive demand for businesses and homes?
Minister reply
Officials in my Department are looking at this issue closely. I am interested in learning more from the hon. Member about her visit to Ohme’s head office.
Ben Goldsborough
Lab
South Norfolk
Question
What action will the Government take for UK-based original equipment manufacturers to ensure competitiveness in future EV markets?
Minister reply
Everything we are doing is about ensuring British businesses remain competitive. Lotus, McLaren, Bentley, and Caterham all welcome our announcements.
Siân Berry
Green
Brighton Pavilion
Question
Has the impact of the announcement on clean air targets been assessed?
Minister reply
An analysis has been done for both carbon emissions and air pollution.
The Member for Norfolk
not specified
Question
Will the Secretary confirm that rural areas such as Norfolk will be prioritised for EV charging infrastructure in the future?
Minister reply
We have increased the installation of EV charging infrastructure in rural areas by 45% in the last year, and we hope to see more progress soon.
Bath
Question
What discussions has the Secretary had with UK manufacturers regarding autonomous vehicles?
Minister reply
We regularly talk to manufacturers interested in connected and autonomous vehicles, exploring safe ways to expedite trials in the UK.
Peter Swallow
Lab
Bracknell
Question
Does the Secretary agree that Labour is on the side of the British car industry given their concerns about previous schemes?
Minister reply
We are backing British business and supporting our domestic car manufacturing industry, with companies in hon. Friend's constituency welcoming the announcement.
Dwyfor Meirionnydd
Question
What direct support will be provided to protect jobs in Wales’s car sector facing 25% tariffs?
Minister reply
We have a £2 billion automotive transformation fund and are investing hundreds of millions of pounds in other forms of support. We work closely with the Welsh Government on these issues.
Mark Sewards
Lab
Leeds South West and Morley
Question
What update can she give on our commitment to charging infrastructure for residents without driveways?
Minister reply
We are working closely with local authorities through the LEVI scheme, issuing guidance on improving cross-pavement charging solutions. Grants are available for householders who wish to install a charge point.
Sammy Wilson
DUP
East Antrim
Question
Does the Minister accept that her policies will lead to market distortion and potential job cuts?
Minister reply
We retain the threat of fines but initial analysis suggests no manufacturers will have to pay fines this year.
Shadow Comment
Gareth Bacon
Shadow Comment
The Labour Government's announcement is a response to the uncertainty they created upon taking office by ideologically reversing previous policies. The imposition of £25 billion national insurance jobs tax and US tariffs on UK automotive exports has caused significant harm, with estimates predicting that up to 50,000 jobs could be at risk. Despite minor adjustments to the zero emission vehicle mandate, Labour's plans do not place the sector in a better position than before. The Society of Motor Manufacturers and Traders warns that targets remain incredibly challenging, especially without bold fiscal incentives. While welcome measures include exemptions for luxury vehicles and hybrid cars until 2035, increasing tax liability on hybrid company cars and reducing fines are insufficient solutions. Labour's policies have already led to factory closures and severe disruption in the new car market.
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