He also scrapped plans that would have made rental properties more energy efficient.
But with changes still years into the future – and the cost of living crisis rumbling on – will pushing deadlines back make a difference to people’s finances now? Here, Sky News takes a look.
When he was prime minister in 2020, Boris Johnson committed to banning the sale of any new petrol and diesel cars in the UK from 2030. This is now being pushed back until 2035.
Plans to fine manufacturers for each vehicle that doesn’t comply are also being watered down.
Figures show that although petrol and diesel are still the overwhelming majority – the numbers of plug-in and battery electric vehicles on UK roads have increased – by 45% and 58% respectively.
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And in 2023 more electric vehicles were registered than diesel ones for the first time.
This shows a “general trend” away internal combustion engines (ICE) – and towards more sustainable modes of transport already, says Oliver Montague, chief-executive and co-founder of the e-bike engineer company Swytch.
So a change in the timing of the ban is unlikely to have much of an impact.
“Those who have to transition [to EVs] will still have to do so – they just have more time to do it,” he tells Sky News.
“The real shift will be for people who can choose how they want to get around – who aren’t already hooked to one particular mode of transport” – such as a diesel car that needs trading in.
And with the average car journey being only around eight miles – he believes many will opt for e-bikes or cycling, instead of an electric vehicle, meaning the ICE ban will have even less of an impact.
The RAC also notes the ban only covers new petrol and diesel cars, which means “a lot of people won’t be affected as the majority tend to buy used vehicles”.
Mike Childs, head of science, research and policy at Friends of the Earth, adds that people will still be able to buy non-UK manufactured EVs.
“From a consumer perspective it won’t have a great impact because they can just buy Chinese or German EVs,” he tells Sky News.
“But for British manufacturing it’s a huge backwards step and a massive shot in the foot for jobs.”
No gas boilers in new homes
Plans to stop new build properties being fitted with gas boilers beyond 2025 are being pushed back 10 years.
This doesn’t affect people who already have gas boilers, who won’t need to replace them with alternatives such as heat pumps. As a result, this change is more likely to affect developers than consumers.
Image: Domestic heat pump
Jess Ralston, energy analyst at Energy and Climate Intelligence Unit, says that with a greater upfront cost for heat pumps, we won’t know until the changes come in how much of that will be passed on to buyers.
But she adds: “As time goes on heat pumps are going to be cheaper to buy and run anyway.”
Plans for all new heating systems to be low carbon by 2035, including £450m in household grants, has also been scrapped.
This means more people will have gas boilers for longer, which with prices “two to three times’ pre-crisis levels” will mean people paying more in energy bills, Ms Ralston adds.
But on Wednesday Mr Sunak did announce a 50% increase in the boiler upgrade scheme, which offers people £7,500 to help with the costs of switching from a boiler to a heat pump.
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4:30
Green Party hits out at Braverman
More energy efficient landlords
In 2020, Boris Johnson also pledged that from 2028 all rental properties would have to have an energy efficient rating of C or higher (A being the best and G the worst). But Mr Sunak is scrapping this due to “cost of living challenges”.
Ms Ralston says she “cannot get a single shred of logic” from the decision.
“This would reduce people’s energy bills in the cost of living crisis and increase energy security – things that the government say they want to be doing. It makes no sense whatsoever.”
Mr Childs says it will disproportionately affect people on lower incomes who are more likely to rent their homes.
“This is a massive kick in the teeth to people who live in cold, damp rented homes that are expensive to heat.
“It’s also a massive handout to landlords who can’t be bothered to insulate their properties properly,” he says.
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He adds that despite some drop in prices this year, the cost of oil and gas is increasing again – and will remain volatile for as long as Russia is at war with Ukraine.
“There are more renters than there are landlords, so it makes no sense on votes. It just begs the question of whether the government are being lobbied by wealthy landlords,” Ms Ralston says.
Hydrogen levy
The government was proposing to introduce a levy of around £100 on household energy bills in 2025 – to help pay for low-carbon hydrogen production.
But after many claimed the hydrogen was being used primarily in industry – not people’s homes – ministers have scrapped it.
This is being welcomed by environmental and consumer groups.
Ms Ralston says that heat pumps are far more efficient than hydrogen for heating homes – so the government was right to recognise this wasn’t something the public should pay for.
Mr Childs adds that hydrogen still relies on natural gas – which both homes and transport have been moving away from, so Friends of the Earth has been “against it from the outset”.
Two senior Labour MPs have suggested the prime minister may have to go within months if the government continues to perform poorly.
Sky News’ deputy political editor Sam Coates said his sources – a member of the government and a prominent politician – have “put Sir Keir Starmer on notice”.
Both warned that, if Labour performs badly in next May’s elections across Wales, Scotland and London, it could mark the end of his time in Downing Street.
Coates added: “The level of unhappiness and despair in parts of the Labour Party is so striking that right now, on the first anniversary, I am hearing from ministers in government that Starmer might have to go in months.”
Reform UK is surging in the polls in Wales, while Labour faces a threat from left-wing parties such as the Greens in London.
It comes as the prime minister made it clear that Rachel Reeves has his “complete support” as chancellor and remains integral to his project, Sky News’s political editor Beth Rigby understands.
She looked visibly upset during Prime Minister’s Questions, with a spokesperson claiming she had been affected by a “personal matter”.
A day earlier, Sir Keir’s controversial welfare bill was passed despite a sizeable rebellion from Labour MPs, with major U-turns meaning a new £5bn black hole has appeared in the country’s finances.
One senior figure told Rigby that the pair were as “as close politically” as any chancellor and prime minister have ever been.
“She is going absolutely nowhere,” they added.
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2:58
Welfare vote ‘a blow to the prime minister’
Ms Reeves’s tears sent markets spiralling, with the value of the pound and long-term government bonds falling sharply.
Later in the day Sir Keir, said Ms Reeves will be chancellor for a “very long time to come”.
The prime minister said it was “absolutely wrong” to suggest her tearful appearance in the Commons related to the welfare U-turn.
“It’s got nothing to do with politics, nothing to do with what’s happened this week. It was a personal matter for her,” he said while speaking to the BBC’s podcast Political Thinking with Nick Robinson.
“I’m not going to intrude on her privacy by talking to you about that. It is a personal matter.”
Asked if she will remain in post, he said: “She will be chancellor by the time this is broadcast, she will be chancellor for a very long time to come, because this project that we’ve been working on to change the Labour party, to win the election, change the country, that is a project which the chancellor and I’ve been working on together.”
He said Ms Reeves has done a “fantastic job” and added: “She and I work together, we think together. In the past, there have been examples – I won’t give any specific – of chancellors and prime ministers who weren’t in lockstep. We’re in lockstep.”
Wes Streeting, the health secretary, also offered a strong defence for the prime minister and chancellor.
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11:07
Health Secretary: Reeves is ‘resilient’
He told Sky News this morning that Sir Keir has been “consistently underestimated” and was “of course” safe as prime minister.
And he said Ms Reeves was a “tough character” who was ” resilient” and “here to stay”.
Despite making “significant improvements”, Greater Manchester Police (GMP) has lost the “trust and confidence” of some victims of grooming gangs, according to a report by the police watchdog.
Michelle Skeer, His Majesty’s Inspector of Constabulary, said that since 2019, when GMP started to review its non-recent child sexual exploitation investigations, “the force has improved its understanding and approach to investigating allegations of child criminal and sexual exploitation”.
The document, published today, said police have live investigations into “multi-victim, multi-offender” child sexual exploitation inquiries, involving 714 victims and survivors, and 1,099 suspects.
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2:00
‘Our chance for justice’
But despite recording improvements, a report by His Majesty’s Inspectorate of Constabulary and Fire & Rescue Services (HMICFRS) also identified:
• Various training gaps within the investigation team • Lack of consistency in evaluating case files between social care, health and police • Failures to initially support victims meant they had “lost trust and confidence” in police
The report was commissioned by the Mayor of Greater Manchester Andy Burnham in 2024 to evaluate whether police, councils and health services can protect children from sexual exploitation in the future.
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1:40
Starmer to launch new grooming gang inquiry
The findings were issued as the final part of the CSE (child sexual exploitation) Assurance Review process which started in 2017. The first three reports examined non-recent child sexual exploitation in Manchester, Oldham and Rochdale.
Mr Skeer said that the force has been trying to improve its service to those who have experienced sexual exploitation, but previous failings have badly affected trust in GMP.
He said: “For some, trust and confidence in the police had been lost, and the force would not be able to rectify their experiences.
“It is vital that improvements are led by victims’ experiences, and if they do come forward, they are supported, protected and taken seriously.”
A recent report by Baroness Casey found a significant over-representation of Asian men who are suspects in grooming gangs in Greater Manchester, adding though authorities are in “denial” more needs to be done to understand why this is the case.
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6:52
Teen caught in child sex exploitation
Inspectors also said there were “training gaps” in some investigation teams and issues with data sharing, with local councils sometimes not willing to provide detectives with information, leading to “significant delays in investigations” into grooming gangs.
It cites problems with intelligence provided by Manchester City Council, which took months to arrive and “was so heavily redacted that some pages contained only a few words”, the report said.
GMP is the only force in the country to set up a dedicated team to investigate grooming gangs. Called the Child Sexual Exploitation Major Investigation Team (CSE MIT) it has about 100 staff and a ringfenced budget.
In October 2024, the force told inspectors there were 59 live multi-victim, multi-offender child sexual exploitation investigations, of which 13 were being managed by the CSE MIT.
The report adds: “The force fully accepts that it made mistakes in the past.
“It has taken positive and effective steps to learn from these mistakes and improve how it investigates recent and non-recent child sexual exploitation.”
Separately, the Baird Inquiry published in July 2024 found officers at GMP were abusing their power – making unlawful arrests, unlawful and demeaning strip searches, sometimes treating victims as perpetrators, and traumatising those who have suffered sexual abuse or domestic violence.
The health secretary has offered a strong defence of the prime minister and chancellor – ahead of Sir Keir Starmer setting out his 10-year vision for the NHS.
Wes Streeting dismissed suggestions the prime minister could be forced out in months following the toughest week of his premiership yet, and described Rachel Reeves as “resilient” and would “bounce back” following her tearful appearance in the Commons on Wednesday.
Overnight, two senior sources – a member of the government and a prominent politician – told Sky News’ deputy political editor Sam Coates that they had “put Sir Keir Starmer on notice”.
The health secretary, who was speaking as Sir Keir prepares to set out his 10-year vision for the NHS, said the prime minister had been “consistently underestimated”.
Asked by Kamali Melbourneon Sky News Breakfast whether Sir Keir was “safe”, Mr Streeting said: “Of course.
“Keir Starmer has been consistently underestimated. I wonder when people will learn.
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2:36
Reeves has ‘complete support’
“They said he couldn’t win the Labour leadership, but he did. They said he couldn’t change the Labour Party, but he did.
“They said he couldn’t take the Labour Party from its worst defeat since the 1930s to election victory last year. And he did and now the cynics say he can’t change the country, but he will.”
As for Ms Reeves – whose tearful appearance in the Commons spooked markets after the prime minister initially failed to back her, Mr Streeting said the chancellor was a “tough character” who was “resilient and she will bounce back”.
The health secretary declined to expand on why Ms Reeves was in the chamber at all yesterday, repeating that it was a personal matter.
“Rachel Reeves as chancellor is here to stay,” he continued.
“We need her to get the economy from strength to strength, to make sure that family finances are in better health than we were when we came into office.”
Speculation about the futures of the two most senior members of the government threaten to overshadow the announcement today, which the government says is “one of the most seismic shifts” in the health service’s history.
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3:05
Why has Starmer axed NHS England?
Sir Keir will pledge three main facets of the plan: moving care into the community, digitising the NHS, and a focus on sickness prevention.
The prime minister will announce neighbourhood health services will be rolled out across England to improve access to the NHS and to shift care out of overstrained hospitals.
Sir Keir has already promised thousands more GPs will be trained, and to end the 8am “scramble” for an appointment.
He also previously said his government will bring the NHS into the digital age, with “groundbreaking” new tools to support GPs rolled out over the next two years – including AI to take notes, draft letters and enter data.
And he will promise new contracts that will encourage and allow GP practices to cover a wider geographical area, so small practices will get more support.
Unite, one of the UK’s largest healthcare unions, welcomed the plan cautiously but said staff need to be the focus to ensure people are better looked after.
Sir Keir said: “The NHS should be there for everyone, whenever they need it.
“But we inherited a health system in crisis, addicted to a sticking plaster approach, and unable to face up to the challenges we face now, let alone in the future.
“That ends now. Because it’s reform or die.”
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2:04
Do you want AI listening in on chats with your doctor?
Neighbourhood health services
The newly announced neighbourhood health services will provide “pioneering teams” in local communities, so patients can more conveniently access a full range of healthcare services close to home.
Local areas will be encouraged to trial innovative schemes like community outreach door-to-door to detect early signs of illness and reduce pressure on GPs and A&E.
The aim is to eventually have new health centres open 12 hours a day, six days a week to offer GP services as well as diagnostics, post-operative care and rehab.
They will also offer services like debt advice, employment support, stop smoking help or weight management.
More NHS dentists
Dentists will also be part of the plan, with dental care professionals part of the neighbourhood teams.
Dental “therapists” will carry out check-ups, treatments and referrals, while dental nurses could give education and advice to parents or work with schools and community groups.
Newly qualified dentists will be required to practice in the NHS for a minimum period, which they have said will be three years.