Rishi Sunak confirms he’s delaying ban on new petrol and diesel cars and boosts boiler upgrade scheme
Rishi Sunak has confirmed he will be easing a series of green policies under a “new approach” designed to protect “hard-pressed British families” from “unacceptable costs”.
Delivering a speech from Downing Street, he said he is still committed to reaching net zero by 2050, but the transition can be done in a “fairer and better way”.
Announcing a raft of U-turns, the prime minister confirmed he will delay a ban on the sale of new diesel and petrol cars by five years and a weakening of targets to phase out gas boilers.
He also said a “worrying set of proposals” that had emerged during debates on net zero would be scrapped, including:
- For government to interfere in how many passengers you can have in your car
- To force you to have seven different bins in your home
- To make you change your diet and harm British farmers by taxing meat
- To create new taxes to discourage flying or going on holiday
“Our destiny can be of our own choosing,” Mr Sunak said – while calling for politicians to be “honest” about the costs of green policies on families.
Politics live: Rishi Sunak gives speech from Downing Street
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‘No rights to impose costs on people’
The measures have faced criticism from across the political spectrum as well as from businesses, environmental groups and even former US vice president Al Gore.
Labour accused the prime minister of “dancing to the tune” of net zero-sceptic Tories and said the plans would actually add more costs to households while damaging investor confidence.
Explaining the government’s decision to delay the ban on the sale of new petrol and diesel cars – currently due in 2030 – by five years, Mr Sunak said this would give businesses “more time to prepare”.
He also said people would still be allowed to buy secondhand diesel and petrol cars after that date and this would align the UK’s approach with countries across Europe, Canada and many US states.
In weakening the plan to phase out gas boilers from 2035, Mr Sunak said households would “never” be forced to “rip-out their existing boiler and replace it with a heat pump”.
This will only be required when people are due to change their boiler anyway and there will be an exception for households for whom that will be the hardest.
Mr Sunak also announced an increase to the boiler upgrade scheme, saying rather than banning boilers “before people can afford the alternative” the government is going to “support them to make the switch” to heat pumps.
He said: “The boiler upgrade scheme which gives people cash grants to upgrade their boiler will be increased by 50% to seven and a half thousand pounds.
“There are no strings attached. The money will never need to be repaid.”
Landlord efficiency targets scrapped
Mr Sunak has also scrapped plans to force landlords to upgrade the energy efficiency of their properties, saying some property owners would have been forced to “make expensive upgrades” within two years and that would inevitably impact renters.
“You could be looking at a bill of £8,000, and even if you’re only renting, you’re more than likely to see some of that passed on in higher rents,” he said.
“That’s just wrong, so those plans will be scrapped.”
Despite the “new approach”, the prime minister insisted the UK would meet its international obligations on climate change – such as those made under the Paris Climate Accords.
He went on to defend the UK’s record, arguing the country is “so far ahead” of other countries in the world when it comes to cutting greenhouse gas emissions.
PM wants to portray himself as a leader prepared to take unpopular decisions his predecessors weren’t
For all the rhetoric about democracy and real political change – today’s speech was fundamentally about the Prime Minister giving into the concerns of many in his party about the costs of the green policies set out by Boris Johnson’s government.
Labour see these announcements as projecting fundamental political weakness: 20 points behind in the polls and struggling to meet the majority of his five pledges, Rishi Sunak urgently needs to find a way to connect with voters struggling during the cost of living crisis. He’s keen to win over the right wing Tory backbenchers concerned about the electoral danger of expensive environmental policies like the ULEZ expansion which was widely seen to have cost Labour the Uxbridge by election.
It’s an impression underlined by the hurried way the announcement was made – less than 24 hours after these controversial change in tack was leaked to the media, prompting a huge backlash from business and many in his own party. Making such a key speech in the Downing Street media briefing room – rather than to Parliament, also looks chaotic.
It’s sent the Speaker into a fury, earning a humiliating rebuke. “Ministers are answerable to MPs – we do not have a presidential system here,” Sir Lindsey Hoyle thundered. For a man like Mr Sunak, who prides himself on being a sensible pragmatist – the complete opposite to the cavalier Boris Johnson – it’s surely a criticism that will sting, though it’s hardly unexpected.
The irony is that Rishi Sunak opened his speech by pledging to put the long term interests of the country before the short term political needs of the moment. Climate campaigners, for whom nothing could be more urgent, will surely scoff at this.
But in the framing of his speech – as the first of a series of long term policy decisions in a ‘new kind of politics’ – the Prime Minister and his team are keen to burnish his reputation as a pragmatic reformer, prepared to take the kind of unpopular decisions his predecessors weren’t. Certainly many in his party have been calling for a change in approach, a new bolder strategy to set out a greater distance with Labour – and it seems he has been listening.
The PM’s key arguments – that government shouldn’t impose unnecessary or heavy handed costs on hard working people, and relying on the market to drive change – are a return to classic Conservatism.
But his core argument that the need for action is less urgent than we have previously been led to believe, because of the UK’s success in meeting existing climate targets – is not one which will sit easily with green minded MPs.
And while he spent a key part of the speech concentrating on the importance of green technological innovation, and celebrating the power of the market in delivering progress – that will surely stick in the throat of companies who’ve spent billions getting ready to meet targets which have now been delayed. Many in his own party are concerned about the reputational damage to the UK as a centre of business investment.
He’s well aware that today’s message will be deeply unpopular with some – but promised to ‘meet any resistance’. Many Tory MPs will welcome that more bullish approach; but his promise to deliver ‘pragmatism and not ideology’ is pure Sunak.
The question now is in the hands of voters – do they buy into this argument that the country can reach Net Zero by 2050 without many of the policies designed to get there? Or in the midst of the cost of living crisis – will they be delighted to avoid the cost of paying for them?
‘Act of weakness’
Among the critics, Ed Miliband, Labour’s Shadow Energy Security and Net Zero Secretary, said: “Today is an act of weakness from a desperate, directionless prime minister, dancing to the tune of a small minority of his party. Liz Truss crashed the economy and Rishi Sunak is trashing our economic future.
“Having delivered the worst cost of living crisis in generations, the prime minister today loads more costs onto the British people.”
Lib Dem leader Ed Davey said: “This is a prime minister who simply doesn’t understand and cannot grasp for Britain the opportunities for jobs and our economy of driving forward with action on clean energy.”
There was also criticism from the car industry and energy industry.
Chis Norbury, the chief executive of the E.ON energy firm, said it was a “false argument” that green policies can only come at a cost, arguing they deliver affordable energy while boosting jobs.
He said companies wanting to invest in the UK need “long-term certainty” while communities now risk being condemned to “many more years of living in cold and draughty homes that are expensive to heat”.
Ford cars UK chairwoman Lisa Brankin said: “Our business needs three things from the UK Government: ambition, commitment and consistency. A relaxation of 2030 would undermine all three.”
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Rishi Sunak is asked if his net zero policy climbdowns are a result of him panicking about the next election.
Tory MPs split
The announcement comes after last night’s leak of the plans sparked a major Tory backlash and even a threat of a no confidence letter.
Mr Sunak was due to give the speech later this week but brought it forward following a hastily arranged cabinet meeting this morning.
Commons Speaker Sir Lindsay Hoyle reacted furiously to the announcement not being made to MPs, who are on recess for conferences, expressing his views “in the strongest terms” in a letter to Mr Sunak.
Tory MPs are split, with some seeing the row back on costly green policies as a vote winner and others fearing the impact it will have on business and the climate.
Senior figures who have backed the prime minister include his predecessor Liz Truss, who said: “I welcome the delay on banning the sale of new petrol and diesel cars as well as the delay on the ban on oil and gas boilers. This is particularly important for rural areas.”
Read more:
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Sunak’s messaging suggests net zero is negotiable
What could be scrapped from net zero pledges?
However Boris Johnson, who Ms Truss briefly took over from, said the row back would cause uncertainty for businesses, adding: “We cannot afford to falter now or in any way lose our ambition for this country.”
Mr Johnson’s ally and prominent Tory environmentalist Lord Zac Goldsmith went as far as to demand a general election over the “economically and ecologically illiterate decision”.
The UK’s commitment to reach net zero by 2050 was written into law in 2019.
Climate scientists say urgent cuts are needed to the world’s greenhouse gas emissions if we are to stop temperatures rising to a potentially catastrophic extent.
In the summer, scientists warned extreme heat events were rapidly on the rise due to climate change.
Supermarket loyalty schemes offer genuine savings for shoppers, according to the competition regulator following an investigation into claims of price manipulation.
The Competition and Markets Authority (CMA) said its review of 50,000 loyalty priced products showed that 92% offered genuine savings against the usual price.
That was despite 55% of shoppers thinking “usual” prices were raised to make loyalty deals more appealing, it said.
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The watchdog’s report found “very little evidence” of supermarkets inflating their ‘usual’ prices to make loyalty promotions seem like a better deal but it did call on firms to bolster access to their schemes.
It was asked to investigate by the consumer group Which?.
Which? had complained that deals were “not all they were cracked up to be” but chains declared that the group’s own report on the issue had failed to take the effects of inflation into account.
The CMA’s report was published at a time of year when supermarket chains tend to scrap for market share by offering discounts to lock in customers for their Christmas grocery shopping.
There is a chance, however, that stretched consumer budgets will benefit to only a limited extent this year as the retail sector faces pressure to save money and protect profits through looming leaps in costs arising from the budget.
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Inflation rises beyond forecast
Major employers, such as grocers, have warned that hikes to employer National Insurance contributions from April will hurt jobs and investment while the rate of inflation has risen again above the Bank of England’s target.
Retail industry body the BRC warned earlier this week that food inflation could soon be on the rise due to rising costs, with the pace of increases for fresh produce already accelerating.
George Lusty, interim executive director of consumer protection at the CMA, said of its price probe: “We know many people don’t trust loyalty card prices, which is why we did a deep dive to get to the bottom of whether supermarkets were treating shoppers fairly.
“After analysing tens of thousands of products, we found that almost all the loyalty prices reviewed offered genuine savings against the usual price – a fact we hope reassures shoppers throughout the UK.
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“While these discounts are legitimate, our review has shown that loyalty prices aren’t always the cheapest option, so shopping around is still key. By checking a few shops, you can continue to stretch your hard-earned cash.”
The regulator said that while loyalty prices were generally some of the cheapest available, people could make an average saving of 17-25% buying loyalty priced products at the five supermarkets examined: Tesco, Sainsbury’s, Waitrose, Co-op and Morrisons.
A Tesco spokesperson said of the findings: “Clubcard Prices has always been about offering genuine savings and rewards to our customers, and we are pleased that this has been evidenced by the CMA.
“We are always working to find the best possible deals for our customers, and with around 8,000 products included in Clubcard Prices every week, we’re helping customers to save up to £385 a year off their groceries.”
As part of its review, the CMA said it also found no evidence that consumer laws were being breached by the way supermarkets collect and use people’s data when they sign up to a loyalty scheme.
Sue Davies, Which? head of food policy, responded: “Two-tier loyalty pricing has become a common practice across retailers. It’s therefore reassuring that the CMA has found that most of the prices it looked at across supermarkets offered genuine savings against the usual price.
“However, it stresses that it is worth shopping around as they aren’t always the cheapest option.”
Britain’s biggest airports are joining the growing private sector backlash against Rachel Reeves’s budget, warning that a £1bn business rates bill for the industry will trigger the cancellation of routes to and from the UK and higher costs for passengers.
Sky News has obtained a draft letter from Airports UK, which represents more than 50 airports across the country, which claims that business rates revaluations will result in the industry being forced to pay more than £1bn – a fivefold increase from the current level.
It describes the impact as “catastrophic”, and demands an urgent meeting with the chancellor to discuss the measures, which would affect the sector from April 2026.
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“Airports are already some of the largest rates payers in the country,” it said.
“These revaluations will increase average rates bills for airports in England by more than 450%, with some airports facing multiples of 12 times.”
The draft letter, which is addressed to Ms Reeves and intended to be copied to Sir Keir Starmer and other cabinet ministers, is understood to be close to being finalised.
One industry source said it could be sent in the coming days.
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The budget measure easyJet’s boss is upset about
In the version seen by Sky News, the industry body says the soaring rates bill “is equivalent to doubling the corporation tax levied on the sector, at a time when the government has committed to stable tax and policy regimes to drive business confidence and stimulate private sector investment”.
“These increases in rates, however, would destroy any chance of this and cause huge damage to the economy,” it said.
“Investment in airport assets will decrease, routes to and from the UK will be lost (as can already be seen in Germany where taxes are rising), trade will be hurt, and British travellers will be hit with higher costs and less choice.”
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CBI chief’s approach to budget tax shock
Airports UK also said that the tax changes announced in the budget would jeopardise the government’s entire growth agenda.
“Without our sector as a major partner, the government’s ambition to secure the highest growth rate in the G7 and unlock an investment-led approach to transforming the economy will be materially damaged,” it said.
“The [Valuation Office Agency’s] revaluation [to determine future business rates liabilities] will threaten the UK’s status as a leader in aviation and a hub for global connectivity and trade.
“Airports cannot be expected to sustain increases of this magnitude without having to scale back investment or to cut routes.
“These increases are punitive against all sizes of airports and threaten the very viability of several airports, without which critical regional connectivity would be lost.”
“This would imperil your growth mission before it even gets started, and we request an urgent meeting in December to resolve this matter.”
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HMV owner slams budget ‘burden’
The letter makes airports the latest in a string of industries to deliver stark warnings to the Treasury about the Budget’s likely impact.
In recent weeks, Sky News has revealed similar letters from the hospitality and retail sectors, in which they have told the chancellor that job losses, business closures and price rises will be unavoidable when rises to employers’ national insurance come into effect next April.
The warning from the airports industry comes amid a slew of corporate activity in the sector, with The Sunday Times reporting last weekend that London City and Bristol airports could soon change hands in a £10bn deal.
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Heathrow’s shareholder base has also changed in recent months, with Paris-based investor Ardian and Saudi Arabia’s sovereign wealth fund swooping for a 38% stake.
A spokesman for Airports UK declined to comment on the letter.
The trade association is run by Karen Dee and chaired by Baroness McGregor-Smith, a prominent businesswoman.
Business
Post Office scandal: Daughter of victim, who was investigated as she fought cancer, calls on Fujitsu for compensation
The daughter of a Post Office victim who was investigated while fighting terminal cancer says it’s time Fujitsu “took responsibility” on compensation.
Katie Watson’s mother Fiona passed away in 2004 less than a year after being forced to admit to stealing from her branch.
During the investigation she was diagnosed with lymphoma.
Ms Watson described it as “cold” and “heartless” to carry on with investigating her mother instead of giving her “a chance” to rest.
“Even if it was a case of ‘go through your treatment and we deal with this on the other side’, there was none of that,” she told Sky News.
What is the Post Office scandal?
Ms Watson added: “If she had been able to fight it properly then she may have had a bit longer… she declined really quickly…she just couldn’t do it anymore.”
Katie’s mother died of cancer after being falsely accused of stealing from the Post Office
IT company Fujitsu developed the faulty accounting software Horizon – which saw hundreds of sub postmasters wrongfully accused of stealing from their Post Offices between 1999 and 2015.
Ms Watson is part of a campaign group called Lost Chances which was set up after Fujitsu said it was “morally obligated” to help victims and their families in January.
Fiiona Watson ( L) died before her innocence was established. Pic: Family handout
Paul Patterson, Fujitsu’s European head, spoke at the Post Office inquiry saying he would “engage” in conversation with sub postmasters and relatives.
He also appeared at a select committee in the same month admitting that the company had a “moral obligation” to contribute towards compensation.
Ms Watson said: “It’s time (Fujitsu) took responsibility and meant it…so far as yet there’s been no action behind it – [Paul Patterson] actually needs to do something.”
Mr Patterson met with sub postmasters and the children of Post Office scandal victims in August.
At the time he spoke to Sky News stating that Fujitsu “will contribute to redress” but that the company’s “common position” was “when the inquiry finishes”.
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The last phase of the inquiry is now drawing to a close – with final submissions held in December.
At his last appearance at the inquiry earlier this month Mr Patterson insisted that the company still “want to engage” but he was “still unclear” on how to help relatives of victims “other than sums of money”.
He promised not to “stay silent” and would explore if Fujitsu is able to “engage” with Lost Chances “before the end of the calendar year”.
The campaign group say their aim is not necessarily just about financial redress but also getting support from Fujitsu in other ways such as establishing a “family fund” to help with things like educational grants and counselling.
After the death of her mother Ms Watson said she was forced to get her first job at 14 years old to “help put food on the table” after her family lost everything.
“We ended up in a caravan – but the caravan site you could only be there for nine months of the year so for three months we were homeless,” she continued.
She added: “I didn’t end up going to college. I missed out on those opportunities – to go to school and have all that childhood.”
Ms Watson now works two jobs, seven days a week.
She said she would “never get back what we lost” but just wanted Fujitsu “to take ownership”.
A Post Office spokesperson said: “We apologise unreservedly to victims of the Horizon IT Scandal and their loved ones.
“Post Office today is doing all we can to transform the organisation for the future and support those impacted to find closure, as far as that can ever be possible.”
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