Sir Keir Starmer promised “bold changes” as he announced he will relax rules around electric vehicles after carmakers were hit by Donald Trump’s tariffs.
Labour made a manifesto pledge to restore a 2030 ban on the sale of new petrol and diesel cars after it had been rolled back to 2035 by Rishi Sunak’s Conservative government.
Image: Starmer promises to ‘back British business’. Pic: Reuters
Sir Keir will officially confirm the ban in an announcement on Monday but regulations around manufacturing targets on electric cars and vans will be altered, to help firms in the transition.
Luxury supercar firms such as Aston Martin and McLaren will still be allowed to keep producing petrol cars beyond the 2030 date, because they only manufacture a small number of vehicles per year.
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‘Nothing off the table’ over tariffs
Petrol and diesel vans will also be allowed to be sold until 2035, along with hybrids and plug-in hybrid cars.
The government is also going to make it easier for manufacturers who do not comply with the government’s Zero Emission Vehicle (ZEV) mandate, which sets sales targets, to avoid fines, and the levies will be reduced.
Sir Keir said: “I am determined to back British brilliance.
“Now more than ever UK businesses and working people need a government that steps up, not stands aside.
“That means action, not words.”
Officials have said support for the car industry will continue to be kept under review as the full impact of the tariffs announced last week becomes clear.
Transport Secretary Heidi Alexander said the industry deserves “clarity” in the economic context.
She said: “Our ambitious package of strengthening reforms will protect and create jobs, making the UK a global automotive leader in the switch to EVs, all the while meeting our core manifesto commitment to phase out petrol and diesel vehicles by 2030.”
Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders, said the government had “recognised the intense pressure manufacturers are under”, while Colin Walker, a transport analyst at the Energy and Climate Intelligence Unit, said the ZEV mandate is a “global success story” in driving a surge in sales of electric vehicles.
Tariff impact on UK businesses revealed
Some 62% of UK firms with trade exposure to the US are being negatively impacted by Donald Trump’s tariffs, according to the British Chambers of Commerce.
Its survey of more than 600 businesses also found 32% of firms with trade exposure to the US said they will increase prices in response.
The survey also found 41% of firms with no exposure to the USA said they would be negatively impacted by the tariffs.
Some 44% of firms with exposure to the US said the UK should seek to negotiate a closer trade relationship with the US, while 43% said they wanted closer trade with other markets.
Just under a quarter (21%) said they thought the UK should impose retaliatory tariffs.
The survey also found that 40% of firms considered the 10% tariffs to be better than they had expected.
It comes as KPMG warned US tariffs on UK exports could see GDP growth fall to 0.8% in 2025 and 2026.
The accountancy firm said higher tariffs on specific categories, such as cars, aluminium and steel, would more than offset the exemption on pharmaceutical exports, leaving the effective tariffs imposed on UK exports at around 12%.
Yael Selfin, chief economist at KPMG UK, said: “Given the economic impact that tariffs would cause, there is a strong incentive to seek a negotiated settlement that diminishes the need for tariffs. The UK automotive manufacturing sector is particularly exposed given the complex supply chains of some producers.”
A two-phase statutory public inquiry into the Southport murders has been formally launched.
Home Secretary Yvette Cooper said the first phase would look at the circumstances around Axel Rudakubana’s attack on a Taylor Swift-themed dance class last summer.
It will focus on issues around policing, the criminal justice system and the multiple agencies involved with the attacker who killed three girls – seven-year-old Elsie Stancombe, six-year-old Bebe King and Alice da Silva Aguiar, nine.
It follows the revelation Rudakubana had been referred to the government’s Prevent scheme on three occasions, with the cases being closed each time.
This breaking news story is being updated and more details will be published shortly.
A police officer who was driving a van that followed two teenagers shortly before they died in an e-bike crash will not be prosecuted.
The deaths of Harvey Evans, 15, and Kyrees Sullivan, 16, sparked riots in the Ely area of Cardiff in May 2023.
The officer was facing a dangerous driving allegation but prosecutors decided there was not enough evidence for a realistic prospect of conviction.
A Crown Prosecution Service (CPS) statement said: “We fully understand that this will be disappointing news for the families of both boys and will offer a meeting with them to explain our reasoning further.”
Rumours on social media that the teenagers were being pursued by police were initially denied.
South Wales Police said none of its vehicles were in Snowden Road at the time of the crash.
But police watchdog the Independent Office for Police Conduct (IOPC) later confirmed it was investigating after video appeared to show them being followed by a van – without blue lights or a siren – minutes before the incident.
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Other footage, however, showed the van turn off and it wasn’t following the boys at the time of the collision.
A key factor under consideration was whether there was any point at which the actions of the officers in the van “constituted a pursuit”.
Image: CCTV showed a police van following the bike moments before it crashed
Detective Chief Inspector Alex Gammampila, who is leading the investigation, called it “an awful incident in which a teenager has lost his life”.
“The thoughts of everyone in the Met remain with Keiron’s family and loved ones as they begin to come to terms with their tragic loss,” the officer added.
The suspects are due to appear at Highbury Corner Youth Court on Monday.