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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2:53
‘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.”
Merseyside Police knows – better than any force, perhaps – that in a social media age, an information vacuum can become a misinformation cauldron.
They have learnt from the aftermath of the Southport stabbing attack, where the force was criticised for being too slow to release information that could have calmed the riots that followed.
So, it feels like things have been done differently this time.
Image: Police tents surrounded by debris at the scene in Water Street. Pic: PA
The incident happened just after 6pm on Monday.
Videos – captured by fans on their phones – were online within moments. Shared and speculated upon, with guesses as to the attacker’s identity and motive.
But alongside the huge and immediate police investigation, the communication machine moved equally fast.
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Within a few hours, police released a description of the man they had arrested – a 53-year-old white British man from the Liverpool area.
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Moment car drives into crowds in Liverpool
A few hours after that, we had an extensive press conference during which police ruled out terrorism as a motive.
Again, they appealed for videos not to be shared online and for people not to speculate.
Liverpool City Region Mayor Steve Rotheram said Merseyside Police “handled the situation fantastically” given how quickly footage of the incident was shared online.
He told Sky News that online misinformation can set “a lot of false narrative”.
The mayor added: “And we all know that speculation and social media are a wildfire of different vantages, and some of it is for nefarious reasons.
“So, it was right, of course, that the police reacted as quickly as they did to dampen down some of the types of posts that we were witnessing, you know, saying that there were other things happening throughout the city.”
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Police commentator Graham Wettone also told Sky News the force had done well to quickly combat misinformation spreading online.
He said: “That’s always a problem in today’s day and age, social media taking over so much news reporting, with so many people as well present at the scene where that awful incident took place, mobile phones out, people recording it, and then posting it almost straight away.”
Dal Babu, a former Metropolitan Police chief superintendent, also highlighted it was “unprecedented” that the force “very quickly” gave the ethnicity and race of the suspect.
Speaking to BBC Radio 5 Live, he said: “I think that was to dampen down some of the speculation from the far-right that sort of continues on X even as we speak that this was a Muslim extremist and there’s a conspiracy theory.”
Mr Babu agreed that Merseyside Police appears to have learned lessons from what happened after the Southport stabbings.
He added: “The difficulty we have is in the olden days, when I was policing, you would have a conversation with trusty journalists, print journalists, radio journalists, broadcasting journalists, you’d have a conversation and say look can you please hold fire on sharing this information and people would listen.
“We don’t have that with social media, it’s like the Wild West and anything goes and so puts the police in a very, very difficult position.”
Meanwhile, the police investigation continues.
In central Liverpool, Water Street is cordoned off with police officers and vehicles in place.
Flags, sprays of paint flares and empty bottles still cover the road. Whereas they have been cleared elsewhere along the parade route, here they remain. Chilling symbols of the party, that within moments became a scene of utter horror.
King Charles and Queen Camilla are being urged to use their visit to Canada to seek an apology for the abuse of British children.
Campaigners have called on them to pursue an apology for the “dire circumstances” suffered by so-called “Home Children” over decades.
More than 100,000 were shipped from orphan homes in the UK to Canada between 1869 and 1948 with many used as cheap labour, typically as farm workers and domestic servants. Many were subject to mistreatment and abuse.
Canada has resisted calls to follow the UK and Australia in apologising for its involvement in child migrant schemes.
Image: King Charles and Mark Carney on Monday. Pic: PA
Campaigners for the Home Children say the royal visit presents a “great opportunity” for a change of heart.
“I would ask that King Charles uses his trip to request an apology,” John Jefkins told Sky News.
John’s father Bert was one of 115,000 British Home Children transported to Canada, arriving in 1914 with his brother Reggie.
“It’s really important for the Home Children themselves and for their descendants,” John said.
“It’s something we deserve and it’s really important for the healing process, as well as building awareness of the experience of the Home Children.
“They were treated very, very badly by the Canadian government at the time. A lot of them were abused, they were treated horribly. They were second-class citizens, lepers in a way.”
John added: “I think the King’s visit provides a great opportunity to reinforce our campaign and to pursue an apology because we’re part of the Commonwealth and King Charles is a new Head of the Commonwealth meeting a new Canadian prime minister. It’s a chance, for both, to look at the situation with a fresh eye.
“There’s much about this visit that looks on our sovereignty and who we are as Canadians, rightly so.
“I think it’s also right that in contemplating the country we built, we focus on the people who built it, many in the most trying of circumstances.”
The issue was addressed by the then Prince of Wales during a tour of Canada in May 2022. He said at the time: “We must find new ways to come to terms with the darker and more difficult aspects of the past.”
On Tuesday, the King will deliver the Speech from the Throne to open the 45th session of Canada’s parliament.
Camilla was made Patron of Barnardo’s in 2016. The organisation sent tens of thousands of Home Children to Canada. She took on the role, having served as president since 2007.
Buckingham Palace has been contacted for comment.
A spokesperson for the Canadian government said: “The government of Canada is committed to keeping the memory of the British Home Children alive.
“Immigration, Refugees and Citizenship Canada deeply regrets this unjust and discriminatory policy, which was in place from 1869 to 1948. Such an approach would have no place in modern Canada, and we must learn from past mistakes.”
The policy means most families cannot claim means-tested benefits for more than their first two children born after April 2017.
Ms Phillipson’s comments are the strongest a minister has made about the policy potentially being scrapped.
Analysis by The Resolution Foundation thinktank over the weekend found 470,000 children would be lifted out of poverty if parents could claim benefits for more than two children.
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However, Ms Phillipson said the government inherited a “really difficult situation” with public finances from the Conservative government.
“These are not easy or straightforward choices in terms of how we stack it up, but we know the damage child poverty causes,” she added.
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Why did Labour delay their child poverty strategy?
The education secretary, who is also head of the government’s child poverty taskforce, said ministers are trying to help in other ways, such as expanding funded childcare hours and opening free breakfast clubs.
She said it is “the moral purpose of Labour governments to ensure that everyone, no matter their background, can get on in life”.
Her “personal mission” is to tackle child poverty, she said.
Sir Keir Starmer is said to have privately backed abolishing the two-child limit and requested the Treasury find the £3.5bn to do so, The Observer reported on Sunday.
The government’s child poverty strategy, which the taskforce is working on, has been delayed from its original publication date in the spring.
Whether to scrap the two-child benefit cap is one of the main issues it is looking at.